HDFC Mid-Cap Opp Fund - A consistent performer: Sharekhan

HDFC Mid-Cap Opportunities Fund is an open ended fund with investment objective to generate long-term capital appreciation from a portfolio that is substantially constituted of equity and equity related securities of small-cap and mid-cap companies.

Scheme analysis

With above ten years of experience, the fund has been a consistent outperformer in comparison with both the benchmark index, CNX MidCap, and the category average. Despite the volatility and uncertainties in the market, the fund performed better than its peers, giving returns of 18.5% over one year as against that of 15.9% and 16.8% given by the benchmark index and the category average respectively in the same period. Over the longer time horizon of three years, the fund has grown at 9.6% compounded annual growth rate while the BSE MidCap Index and the category average have grown at -2.4% and 4.5% respectively.

In recent months the fund has garnered returns of -1.6%, better than both the -5.3% return posted by the benchmark index and -6.4% returns from the mid-cap funds category average. The fund currently has about 67 stocks in its portfolio. It has nearly 96.2% of its net assets exposed to equity while the rest is exposed to the other money-market instruments. The top ten stocks form about 27.2% of the portfolio. The fund has invested nearly 16.9% of its funds in the banking sector followed by the pharmaceutical, and software and consultancy services sectors with 15.3% and 9.7% allocations respectively.

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