Investment Objective
The investment objective of HDFC Multicap Fund is to generate long term capital appreciation for its investors by investing in equity and equity related instruments of large cap, mid cap and small cap companies.
Investment Strategies
- As per the SEBI rules, a multicap fund has to invest at least 25% of its exposure in each of the three primary market cap categories — large cap, mid cap & small cap companies. While abiding by these rules, the fund aims to maintain an exposure of 60-75% of its total assets in large and midcap companies and 25-40% in small cap companies.
- The fund follows a combination of top down and bottom up approaches for stock selection, without any style bias.
- It follows growth, value and turnaround investment styles for stock picking.
- The scheme seeks to invest in companies that are expected to deliver steady and secular growth, undergoing a turnaround in profitability and having the potential for re-rating.
- It focuses on companies, which are gaining market share and/or are leaders due to scale, superior execution, better adoption of technology, etc.
- HDFC Multi Cap Fund seeks to remain benchmark-aware and avoid significant deviations from the sector weights of its benchmark index.
Who Should Invest
- Investors having a long term investment horizon seeking a one-stop solution with disciplined exposure across large cap, mid cap and small cap segments.
- Those seeking a market cap based diversified portfolio through regular SIP investments.
- Investors seeking to benefit from the stability of large caps, the growth of mid caps and the potential of small caps.