HDFC Mutual Fund launches multi cap fund

HDFC Asset Management Company has launched the New Fund Offer of HDFC Multi Cap Fund. The scheme will make mandatory allocation of minimum 25% of its total assets each in large, mid, and small cap companies, while the balance 25% of its total assets will be allocated based on market view of the fund manager. The NFO opens on November 23 and will close on December 7.

According to a press release, HDFC Multi Cap Fund will follow a mix of top down and bottom up approach to stock selection. As per the current investment strategy, the scheme will invest 60%-75% of Total Assets in large and mid caps. Further, it will invest 25%-40% of total assets in small caps. The scheme will invest without a style bias and aims to capture opportunities across growth, value and turnaround companies.

The scheme will be managed by Gopal Agrawal, who has nearly 19 years of experience in fund management and equity research. “We have observed that different market cap segments perform differently at different points in time. HDFC Multi Cap Fund is a one-stop solution for investors looking for exposure to different market caps, through one fund in a disciplined manner, to achieve better risk-adjusted returns. We believe that long-term fundamentals, effective diversification and stock selection are critical in a constantly changing environment. Going forward, the structural growth drivers and supportive external environment bode well for India’s secular growth story. Further, robust earnings growth outlook and favourable macroeconomic environment bode well for equities over medium to long term,” Gopal Agrawal said.

According to the fund house, HDFC Multi Cap Fund is suitable for investors with a medium to long term investment horizon, looking for disciplined exposure to large, mid and small caps.


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