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HDFC Multi Cap Fund (NFO Review)


HDFC mutual fund is one of the largest mutual fund houses in India with Rs 4.4 lakh crore in assets under management. HDFC mutual fund is launching its new fund HDFC Multi Cap funds. This new fund offer is opening on 23 Nov, 2021 and will close on 7 Dec 2021. This is an open ended equity scheme which will invest across large cap, mid cap, and small cap stocks. Benchmark index- Nifty 500 MULTICAP 50:25:25 (TRI). If investor redeems units within one year, then investor has to pay 1% exit load, or if units are redeemed after one year from the date of allotment no exit load will be applicable.

What is Multi Cap fund?

Multi cap fund is the category of mutual fund which invests in all the market cap stocks. As per the new rules of SEBI, multi cap fund can invest minimum 25% in large cap stocks, 25% in mid cap stocks, 25% in small cap stocks and fund manager has flexibility to allocate 25% of total fund across the market segments including debt and money market segments.


Why HDFC mutual fund is coming up with this new fund when market is at its all time high?

According to the Kotak institutional equities data, the earnings growth is estimated to surge by 73% from fiscal year 2021 to fiscal year 2024. Most of the sectors are estimated to grow exceptionally, considering the growth of all the sectors, it seems that market might go more high in near future, so this is justifiable and understandable that why HDFC mutual fund is coming up with Multi Cap fund. 


Why invest in HDFC Multi cap fund?

Professional Management- HDFC Mutual fund is on operations since 1999, and fund house is having an experienced management and sector analyst team.

Diversification- Fund manager has to allocate minimum 25% funds of total asset mandatorily across the stocks of large cap, mid cap, and small cap. This will bring discipline in the scheme.

Low risk- This mutual fund is low in risk than small cap funds and mid-cap funds. This fund provides good returns than large cap funds and flexi cap funds.

SIP- SIP (systematic investment plan) is available on this facility

Fund Manager- Mr Gopal Agrawal is the fund manager for this scheme, he is having more than 16 years experience in fund management and 2 years in equity research.

Investment strategy- The fund manager will follow a mix of top down and bottom up approach to stock selection. Fund manager will allocate 60% to 75% of total fund in large cap stocks and mid cap stocks and remaining 40% to 25% will get allocated to small cap stocks.

HDFC has wide representation of sectors across the market caps

HDFC Multi cap fund is suitable for-

  • The investors who are seeking long term wealth creation.
  • Investor who wants to invest in large cap, mid cap and small cap, with the balanced approach.

Key Suggestions-

  • This scheme has to be the part of your core portfolio
  • Invest in this scheme for the future goals like child education and marriage, house and retirement, and various other long term goals.
  • This scheme is very good for those investors who are new at investing and for those who wants to invest in mutual fund.


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