HDFC AMC has launched HDFC Multi Cap Fund for investors looking to diversify their portfolio with a disciplined exposure to large cap, mid cap, and small cap segments.
The scheme will make mandatory allocation of a minimum of 25% of its total assets each in large, mid, and small cap companies, while the balance 25% of its total assets will be allocated based on the market view of the fund manager.
The scheme will have a choice of a wide representation of sectors across market capitalization. The NFO will open on November 23, 2021, and will close on December 7, 2021.
"Historically, different market cap segments have outperformed each other at different points in time. Out of the last 16 financial years (FY06 to FY21), large caps have been the top performing market cap segment in 6 years, mid caps in 3 years and small caps in 7 years. Consequently, this presents a strong case for diversification across market cap segments. However, deciding the allocation to Large, Mid and Small Caps is not easy for most investors. Multi Cap approach helps investors focus on diversification instead of predicting outperformance/underperformance of different market cap segments," states the fund house.
HDFC Multi Cap Fund will follow a mix of top-down and bottom-up approach to stock selection. As per the current investment strategy, the scheme will invest ~60%-75% of total assets in Large and Mid Caps. Further, it will invest ~25%-40% of total Assets in Small Caps. The Scheme will invest without a style bias and aims to capture opportunities across growth, value and turnaround companies.
