HDFC Mid Cap Opportunities Fund

HDFC Mid Cap Opportunities Fund is one of the better performing funds in its category. This fund is managed by Chirag Setalvad from April 2007. Chirag is an experienced fund manager with several well performing funds to his credit. Prashant Jain has been managing the fund from April 2007. If you already hold units in this fund you can stay put. New investors can try this fund as well.

Where does HDFC Mid Cap Opportunities Fund invest your money?

HDFC Mid Cap Opportunities Fund is a small & mid cap fund which means most of your money will be invested in giant and large companies. And just to give kicker returns the fund has some exposure in mid cap companies as well. Large cap companies tend to be stable compared to mid cap and small cap companies. HDFC Mid Cap Opportunities fund has 54.12% exposure to mid size companies, 32.07% exposure in small size companies and 13.64% exposure in large cap companies.

Suitable for what?
  • Creation of wealth
  • Lifestyle needs
Not suitable for?
  • Child's marriage
  • Child's education
  • Retirement Plans
  • Home Purchase
How much to invest?

Minimum one time investment is Rs 5000 and minimum SIP is Rs 500 per month. Do not make HDFC Mid-Cap Opportunities Fund as part of your core portfolio. Core portfolio is investments that are made for your basic goals and makes up about 70% of your investment portfolio. HDFC Mid-Cap Opportunities Fund can be part of your satellite portfolio. Do not do the mistake of investing in too many mutual fund schemes. At any point of time do not have more than two mutual fund schemes in your core portfolio.

Our recommendation for fresh investment
Recommended
Our recommendation for existing investment
Recommended
How has HDFC Mid Cap Opportunities Fund performed in the past?

If you had invested Rs 1 lakh when the fund was launched in June 2007, your value of investments would be around Rs 1.76 lakhs. The performance has been better than or similar to other mutual funds in this category. The fund has been giving at around 11.7% every year for those who stayed invested for last 5 years. 

Assume you had invested Rs 10,000 every month in HDFC Mid-Cap Opportunities Fund through SIP from last 5 years today you would have around Rs 9.14  lakhs.

How HDFC Mid Cap Opportunities Fund will perform in the future?

Needless to say no one can predict the future of markets. We have firm belief in the future prospects of the Indian economy. If the Indian economy grows at 9% then the leading companies tend to do well. When the companies do well their stock prices follows their performance. So if you expect the economy to grow at 9% then you can expect top performing mutual funds to give you returns in excess of 15%. 

We advise you to avoid too much of star gazing and future prediction. Be reminded that equities are one of the asset classes that have the potential to beat inflation. Your aim for core portfolio should be to beat inflation.

When to review?

Once you invest in the fund do not get into the habit of checking the NAV daily or monthly. Review the performance once a year. Too much attention is not good.

What charges apply?

A onetime fee of Rs 100 is charged on investments over Rs 10, 000 made through distributors. If you are a first time investor in mutual funds an additional Rs 50 is charged to cover KYC expenses. This is deducted from your investment and can be skipped if you buy directly from the mutual fund via their website or offices.

If units are sold within a year an exit load of 1% is deducted from your total returns. No exit load applies for units withdrawn post one year. Expense ratio of HDFC Mid Cap Opportunities Fund is 2.47%. This is charged to recover the fund management company’s expenses on securities’ transactions, commissions, registrar fees, etc. Your mutual fund returns will be total returns less expense ratio. 

When to enter?

Now! There is no good time to invest rather than now. Do not try to time the market and especially if it is an SIP. Do not follow news channel and other experts trying to know the right time to invest. In the long run it does not matter. Mutual fund is unlike a stock where you are looking at the right price. This job will be done by the mutual fund scheme manager. If you have planned your investments and decided on the amount you want to invest do not think further, just go ahead.

When to exit?

Withdraw when your goals are closer to achievement. Do not remove the money when the markets go up or down. Do not panic. Stick to your goals.

What are the tax implications?

The returns in a mutual fund are absolutely tax free, provided you do not withdraw within 1 year. HDFC Mid Cap Opportunities Fund does not qualify for sec 80C ELSS benefits.

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