Know Your Fund #3: HDFC Mid Cap Fund

The largest mid-cap fund in the category by a wide margin. HDFC Mid Cap is at ₹85,358 Cr, while the next-largest, Kotak, is at ₹55,676 Cr. Out of 33 mid-cap funds, scale at this level is unique.

It was launched in mid-2007 (regular plan), right before the global financial crisis. Fund manager Chirag Setalvad has managed it from day one.The fund has had its ups and downs, with bouts of underperformance from mid-2017 to mid-2022. This led to investors doubting.

After 2022, the narrative flipped from “Is this fund still good?” to “Can a fund this big still perform?”

What the numbers say today:

1. Shallowest 5Y drawdown in the category: −17% vs the category’s −22%

.2. Expense ratio is middling at 0.77% (#20/33). Scale hasn’t translated into cheaper fees.

3. Rolling returns suggest a fair share of ups and downs.

4. Beats the category average on all six risk ratios.

5. Almost 85% exposure to mid- and small-cap companies.