Investment Objective
HDFC Focused Fund seeks to generate long term capital appreciation and/or income by investing in equity and equity related instruments of up to 30 companies.
Investment Strategies
- The fund manager maintains a portfolio of up to 30 high conviction stocks, chosen from across market cap segments, without any sectoral bias.
- The fund focuses on quality companies available at reasonable valuations.
- The fund aims to generate better risk adjusted returns through a focused portfolio, backed by extensive in-house research conviction.
- The fund manager prefers good quality companies having the following attributes:
- fundamentally strong companies with growth drivers in medium to long term
- competitively positioned in an industry having good prospects
- led by strong management having the ability to capitalize opportunities while adeptly managing risks
- backed by a strong track record in corporate governance, Environmental, Social, and Governance (ESG) sensitivity and transparency
- The fund takes a long-term view for stock selection and exploits near term volatility to reinforce high conviction ideas. It also considers the stage and trajectory of the industry cycle and takes a risk-adjusted view to position itself ahead of the market.
- The fund takes a holistic approach to valuations to offer a reasonable margin of safety, without depending solely on traditional parameters like P/E or P/B.
- It sets the market cap allocation on the basis of relative attractiveness of opportunities available in each market cap segment.
Who Should Invest
- Investors seeking long term capital appreciation or income through an exposure to a focused portfolio of high conviction stocks, without any market capitalisation and sector bias.
- Investors seeking to invest in equity and equity related instruments of up to 30 companies.
- Investors having a very high risk appetite and preferably long investment horizon.