Middle of the Pack, Top of the Charts: HDFC’s Fund Finds Its Stride

Image Source: HDFC Mutual fund

HDFC Mid Cap Fund has once again led the charge in the mid-cap mutual fund segment with robust returns and showing resilience in different market cycles. With Chirag Setalvad at the helm as a seasoned fund manager, the fund has turned into a benchmark for long-term investors seeking growth with discipline.

Performance and portfolio standouts:

As of May 2025, the fund has an asset base of Rs 797 billion, largest in its category.

It has a portfolio comprising 76 stocks with the largest holding in Max Financial Services (4.8%), Federal Bank (3.2%), and Coforge (3.2%).

Sectoral exposure is dominated by auto ancillaries, banking, infotech, healthcare, and finance, representing 57 percent of all assets.

Investment plan and risk attitude

The fund is bottom-up, buy-and-hold in its investment philosophy, avoiding momentum chasing and excessive turnover.

It boasts a low turnover ratio (20–30 percent), a sign of confidence in long-term choices.

With 64.3 percent in mid-caps, 20.6 percent in small-caps, and 5.4 percent in large-caps, the fund strikes a growth-diversification balance.

Sharpe and Sortino ratios indicate greater risk-adjusted returns compared to counterparts and benchmarks.

Historical performance:

In the past five years, the fund has outperformed the Nifty Midcap 150 TRI by 4-5 percent on a rolling basis.

Although it had a difficult five years from 2016 to 2021, it staged a good recovery, delivering five-year annualised gains of 30.93 percent.

Investor takeaway: HDFC Mid Cap Fund is suitable for high-risk tolerance and long-term investors, especially those seeking an exposure to emerging leaders with sound fundamentals.

Sources: Financial Express, ET Money, MSN News