HDFC Large & Mid Cap mutual fund review: Why it needs to prove its worth

ET Wealth collaborates with Value Research to analyse top mutual funds. We examine the key fundamentals of the fund, its portfolio and performance to help you make an informed investment decision.

How the fund has performed

Where the fund invests

Basic facts

  • Date of launch: 18 February 1994
  • Category: Equity
  • Type: Large & Midcap
  • AUM (As on 31 July 2021): Rs 2,736 cr
  • Benchmark: NIFTY Large Midcap 250 Total Return Index

What it costs
NAV (As on 31 August 2021)

  • Growth option: Rs 174.889
  • IDCW: Rs 23.31
  • Minimum Investment: Rs 5,000
  • Minimum SIP amount: Rs 500
  • Expense ratio (As on 31 July 2021) (%): 2.34
  • Exit load: 1% for redemption within 365 days

Fund Manager: Gopal Agrawal
Tenure: 1 year

Top 5 sectors in portfolio (%)

Top 5 stocks in portfolio (%)

Recent portfolio changes

  • New Entrants: Clean Science And Technology, United Spirits, Zomato.
  • Increasing allocation: Power Grid Corporation of India, Lupin.

How risky is it?

Source: Value Research

Should You Buy
Earlier known as HDFC Large Cap, this fund was renamed HDFC Growth Opportunities when it adopted the large and mid cap mandate in 2018. Now known as HDFC Large & Mid Cap, the fund maintains 35% in each segment, but retains a tilt towards large caps. It has taken modest positions in small-caps in the past year. The fund favours growth businesses with distinct competitive advantages and scalability, apart from selective exposure to value and turnaround plays. In the past, it has seen frequent bouts of underperformance. An experienced hand has taken reins of the fund recently. His emphasis on limiting drawdowns can put the fund on a stronger footing, but needs to prove execution capabilities to turn its performance around sustainably.