HDFC Midcap Opportunities Fund - Growth Option: Best Mid & Small Cap Equity Fund in Last 5 Year

HDFC Midcap Opportunities Fund - Growth Option: Best Mid & Small Cap Equity Fund in Last 5 Year

May 17, 2018

Equity Funds Mid and Small cap are those mutual funds which invest in mid and small cap stocks rather than large cap stocks. The percentage of investment between mid cap and small Cap would vary between the various mutual funds. Mid & small Cap stocks are generally more volatile when compared to a large cap stock but provide higher returns in comparison. They are generally categorized as high risk-high return stocks.

Investing in mid and small cap Equity funds are ideal for those who are inclined to take risks in return for higher rates of returns. Investing in diverse portfolio helps to mitigate the risk to a large extant and also ensuring to gain higher returns due to the stocks which are performing well. Choosing stocks from high performing sectors helps to gain consistent returns on the investments as well as reduce the impact of low performing equities.

HDFC Midcap Opportunities Fund - Growth Option- An Overview

HDFC Midcap Opportunities Fund is a mutual fund which is categorized as Equity Funds Mid and small Cap. This category is considered to be belonging to high risk high return ban of mutual funds and HDFC Midcap Opportunities Fund is a fund which has been performing consistently well. The fund was launched on 25-06-2007 and the minimum investment which needs to be made is Rs. 5000. There is an option of further top up investments with a minimum amount of Rs.1000. In line with the category the corpus of the fund is distributed into investing in various mid cap and small cap equities.

The fund is rated as a Moderately High risk mutual fund. Around 13% of the investments are made in the banking sector, which is a high performing sector providing higher returns on the investment. Auto Ancillaries, Finance, Pharmaceuticals, Industrial products, Consumer durables, Software, Construction projects etc are various other sectors into which a major share of the investments are made. All these sectors have a share of nearly half of the total investments which are made.

Investing into diverse equity stocks is important to ensure higher returns and tide through any fluctuations in the market. Voltas ltd, Sundaram Finance Ltd, Aurobindo Pharma Ltd, TI Financial holdings, IndusInd Bank, Adani Ports & SEZ, The Federal Bank Ltd, Balalkrishna Industries Ltd are few of the equities into which HDFC Midcap Opportunities Fund makes the investments. All these equities are companies with medium or small capitalization.

Performance of HDFC Midcap Opportunities Fund - Growth Option

The category of Equity Funds Mid and small cap is a category which provides high returns and HDFC Midcap Opportunities Fund has been consistently outperforming the category.

The 1-year return of this mutual fund is 14.99 % when compared to 14.91% returns of the category. Both of these higher than the returns of 11.6 % which is the CNX midcap index benchmark. The three year returns of HDFC Midcap Opportunities fund is higher and at par with the average returns of the category and benchmark index.


Source: Swaraj Wealth Research


The 5 year returns of the mutual fund are 27.59 % which is higher than the average 5-year returns of the category which is 25.89 %, the five year returns of CNX midcap benchmark index is 20.92 %.

The SIP return reflects the profits being earned and is a good indicator to understand the performance of the mutual fund.


Source: Swaraj Wealth Research


The profits of the mutual fund are recorded at 8400 which is higher than the industry benchmark of 5556. The SIP returns of HDFC Midcap Opportunities fund is 15.79% which is also higher than the benchmark returns of 10.35%.

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