HDFC Flexi Cap Fund, managed by HDFC Asset Management Company, was launched in January 1995 and has shown significant growth over the years. As of February 28, 2025, the fund’s assets under management (AUM) reached Rs 64,124 crore, achieving an 18.77% return since its inception. The fund follows the NIFTY 500 TRI benchmark and operates as an open-ended scheme. On March 21, 2025, the net asset value (NAV) stood at Rs 1,816.4720.
Remarkably, a monthly systematic investment plan (SIP) of just Rs 700, started at the fund’s inception, would have grown to Rs 1.36 crore today. This growth is attributed to an annualised return rate of 21.05%. Over the 30-year period, the total amount invested would have been Rs 2,52,000, demonstrating the potential rewards of long-term investment strategies within the mutual fund industry.
As of late February 2025, the HDFC Flexi Cap Fund’s investment portfolio was strategically diversified. The scheme allocated 88.37% to equity, 7.88% to cash and cash equivalents, 2.95% to real estate, and 0.8% to debt. The largest investments were in major financial institutions including HDFC Bank, ICICI Bank, Axis Bank, and Kotak Mahindra Bank, along with the automotive giant Maruti Suzuki. This diverse asset allocation allows the fund to mitigate market volatility by investing in companies of varying sizes.
Investment and rolling returns
HDFC Flexi Cap Fund has shown strong performance in its Systematic Investment Plan (SIP) across multiple durations, notably outperforming its benchmarks. As of December 31, 2024, the fund’s 15-year SIP return stands at 21.26%, significantly surpassing the benchmark return of 15.35% and the additional benchmark return of 13.93%. This impressive performance reflects the fund’s effective investment strategy, providing substantial growth for long-term investors.
Over a 10-year period, the HDFC Flexi Cap Fund continues to yield substantial returns, achieving 16.82%, which exceeds the benchmark’s 15.04% return and the additional benchmark’s 13.53%. The fund’s 5-year SIP performance also demonstrates robust results with a return of 18.91%, outperforming the benchmark return of 16.39% and the additional benchmark return of 14.49%. These figures underscore the fund’s consistent ability to deliver superior returns, positioning it as a favourable option for mid to long-term investors seeking growth.
In shorter investment durations, the fund also shows commendable performance. For a 3-year SIP, the fund achieved a remarkable return of 27.42%, which is significantly higher than the benchmark return of 20.81% and the additional benchmark return of 16.73%. Over a 1-year period, the fund returned 26.08%, again outperforming the benchmark and additional benchmark returns which stood at 19.51% and 14.32%, respectively. These figures indicate the fund’s strong adaptability and performance resilience in varying market conditions.
The market value of the total amount invested through SIPs in HDFC Flexi Cap Fund has grown appreciably across different durations. For instance, a total investment of Rs 36 lakhs over 15 years has appreciated to Rs 2,038.95 lakhs. Similarly, a 10-year investment of Rs 18 lakhs now values at ₹72.30 lakhs. The corresponding figures for 5-year, 3-year, and 1-year SIPs further highlight the fund’s capacity to enhance investor wealth, with respective market values of Rs 32.48 lakhs, Rs 11.80 lakhs, and ₹5.25 lakhs.
| CAGR (%) | More than 15% | More than 10% | More than 5% | More than 0% | Less than 0% |
|---|---|---|---|---|---|
| 1 Year | 55% | 62% | 69% | 72% | 78% |
| 3 Years | 64% | 77% | 87% | 96% | 100% |
| 5 Years | 70% | 86% | 98% | 100% | 100% |
| 10 Years | 75% | 91% | 100% | 100% | 100% |
| 15 Years | 24% | 9% | – | – | – |
Investment pattern
HDFC Flexi Cap Fund’s impressive performance underscores the potential benefits of considering historical performance and management strategies when choosing investment opportunities. While specific details of competition are not provided, the fund’s 21.05% annualised return highlights the opportunity for substantial capital appreciation within the mutual fund sector. Analysts frequently stress the importance of a fund’s track record and strategic positioning in determining its future prospects.
The flexibility of flexi cap funds, such as the HDFC Flexi Cap Fund, lies in their ability to allocate at least 65% of their assets in equities while adjusting their investments across various sectors based on potential returns. This adaptability is key to their competitive edge in the mutual fund industry, particularly when market trends and economic conditions fluctuate. The fund’s strategic asset management has played a critical role in its ongoing success.