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HDFC Flexi Cap offers 18% returns PA in 26 yrs

HDFC Flexi Cap Fund has accomplished 26-years of journey in the market. The fund, earlier known as HDFC equity fund, is one of the flagship funds of HDFC AMC. The fund has delivered 18.44% CAGR in over 26 years vs. NIFTY 500 TRI CAGR of 12.0% (01 Jan 1995– May 31, 2021), the fund house said in a recent communication. The fund house also said that Rs 1,00,000 invested on inception of the Fund, i.e. 1st Jan 1995, would have grown to Rs 87.60 lakh at CAGR of 18.44 % as on 31st May, 2021. An SIP of Rs 10,000 in the fund since inception would have grown to Rs 9.57 crore as on 31st May, 2021. This period of 26 years has witnessed sharp market corrections of 50%. The fund house attributes the track record to the time tested approach of investing in strong businesses, diversification and focus on valuations. The current NAV was Rs. 882 (as on June 24, 2021), which translates into CAGR of 18 % p.a. since inception. “The portfolio of HDFC Flexi Cap Fund is well positioned for the impending economic resurgence and likely improvement in corporate profitability. We have positive outlook on the markets over the long term driven by growth focused budget, low cost of capital, reasonable valuations and strong earnings outlook. Though the market rally is getting broad based, there are select pockets which are still undervalued compared to their long term averages,” Prashant Jain, Executive Director & Chief Investment Officer, HDFC Asset Management Ltd said. HDFC Flexi Cap Fund shifted to the flexi cap category after Sebi put rules in place for multi cap funds. This scheme has the flexibility to invest across market spectrum i.e. large, mid and small cap stocks. The fund is overweight in sectors with prospects of earnings recovery with reasonable valuations and is underweight in expensive sectors generally. The fund aims to invest in stocks/ sectors that are available at reasonable valuations.

from Economic Times https://ift.tt/3qS0fzp

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