Equity funds are stock funds that are managed actively or passively. They can be categorized into various types according to market capitalization, target business sectors, and investment style. The number of equity funds available in the market is the maximum, making it a popular choice among people. Equity funds particular to various market sectors, specific interest groups or specific stock exchange are available. There is a type each to match different investment objectives of investors and various risk profiles as well.
The most common categorization of equity funds is based on market capitalization. There are large cap, mid cap and small cap stocks in which HDFC growth fund invests. These stocks can be better explained as follows:
- Large Cap Stocks: Stocks whose market capitalization is greater than 25th largest stock by market cap in the CNX Midcap Index.
- Mid-Cap Stocks: Stocks whose market capitalization is more than Rs. 500 crores but less than 25th largest stock by market cap in the CNX Midcap Index.
- Small Cap Stocks: Stocks having a market capitalization of up to Rs. 500 crores.
Name of AMC: HDFC Asset Management Company Limited
Investment Objective: The Fund seeks to invest predominantly in equity and equity-related instruments in order to generate long-term capital appreciation in future.
Asset Size: As on 31st March 2017, the fund had an asset size of Rs. 990.26 crores.
Ranking: CRISIL has ranked the fund second in the large cap category for the quarter that ended on 31st December 2017 and the rank has remained unchanged since then.
Fund Manager: Mr. Srinivas Rao Ravuri