Introduction
Mid-cap mutual funds occupy a sweet spot in equity investing — they offer higher growth potential than large-cap funds while being less volatile than small-cap funds. Among these, HDFC Mid Cap Fund (HDFC Mid Cap Fund Opportunities) stands out as one of the most prominent and long-running mid-cap schemes in India.
In this blog, we will cover:
- Fund overview: what it is, its history, and purpose
- Investment philosophy and strategy
- Performance analysis (returns, risk metrics)
- Portfolio composition: sectors, top holdings, asset allocation
- Management team
- Advantages and potential drawbacks
- Ideal investors and use cases
- Risks to consider
- How to invest (SIP, lump sum, minimums)
- Comparison with peers / benchmark
- Recent developments
- Conclusion
1. Fund Overview
Name: HDFC Mid Cap Fund (formerly HDFC Mid Cap Fund Opportunities)
Fund House: HDFC Asset Management Company (HDFC AMC)
Category: Equity – Mid Cap The Economic Times+2moneymineinvestments.com+2
Inception Date: 25 June 2007 PersonalFN+1
Benchmark: Nifty Midcap 150 – TRI mfonline.co.in+2ET Money+2
Minimum Investment: ₹ 100 lump sum, ₹ 100 for additional. Minimum SIP also ₹ 100. PersonalFN+1
Exit Load: 1% if redeemed on or before 1 year; nil after 1 year. PersonalFN+2The Economic Times+2
Expense Ratio: ~1.36% (Regular) as per recent data. The Economic Times+2mfonline.co.in+2
AUM (Assets Under Management): ~ ₹ 89,383 crore (as of Oct/Nov 2025) for Regular plan. ET Money+2moneymineinvestments.com+2
NAV: ~ ₹ 203.30 (Growth, Regular) as on 14 Nov 2025. mfonline.co.in+2ET Money+2
Risk Level (as per Moneycontrol): Very High (since it’s a mid-cap equity fund). Moneycontrol
2. Investment Philosophy & Strategy
Understanding how the fund invests is crucial to assess whether it aligns with your goals.
- The scheme’s stated objective is to provide long-term capital appreciation/income by investing predominantly in mid-cap companies. ET Money
- According to sources, the fund follows a bottom-up stock-picking approach, focusing on companies with strong fundamentals, growth potential, sustainable business models, and reasonable valuations. The Financial Express
- It typically maintains a buy-and-hold strategy, avoiding excessive churn. As per one analysis, the turnover ratio in recent years has been moderate (~20–30%) which suggests conviction in its holdings. The Financial Express
- The mandate requires that at least ~65% of the assets should be in mid-cap equities. The Financial Express
- The fund doesn’t shy away from exposure to small-cap or large-cap companies if the opportunities are compelling — its mix is not purely mid-cap, enabling some flexibility. For example, recent data suggests around 64.3% in mid-cap, ~20.6% in small-cap, ~5.4% in large-cap, with the remainder in cash. The Financial Express
- Sectorally, the fund has significant exposure in auto ancillaries, banking, healthcare, finance, and IT. The Financial Express+1
3. Performance Analysis
RETURNS (NAV as on 20th November, 2025)
| Period Invested for | ₹10000 Invested on | Latest Value | Absolute Returns | Annualised Returns | Category Avg | Rank within Category |
|---|---|---|---|---|---|---|
| 1 Week | 13-Nov-25 | 10057.90 | 0.58% | – | 0.65% | 19/31 |
| 1 Month | 20-Oct-25 | 10254.00 | 2.54% | – | 1.17% | 5/31 |
| 3 Month | 20-Aug-25 | 10503.30 | 5.03% | – | 2.62% | 4/30 |
| 6 Month | 20-May-25 | 11073.70 | 10.74% | – | 9.19% | 7/30 |
| YTD | 01-Jan-25 | 10791.50 | 7.92% | – | 4.28% | 5/29 |
| 1 Year | 19-Nov-24 | 11301.20 | 13.01% | 12.97% | 8.85% | 5/29 |
| 2 Year | 20-Nov-23 | 15104.40 | 51.04% | 22.87% | 21.33% | 9/29 |
| 3 Year | 18-Nov-22 | 20693.20 | 106.93% | 27.35% | 23.51% | 5/27 |
| 5 Year | 20-Nov-20 | 35094.80 | 250.95% | 28.53% | 25.15% | 3/24 |
| 10 Year | 20-Nov-15 | 59116.80 | 491.17% | 19.43% | 17.59% | 4/20 |
| Since Inception | 01-Jan-13 | 120032.40 | 1100.32% | 21.26% | 20.52% | 11/31 |
Source :- moneycontrol
Let’s dive into how the fund has performed historically, and also examine its risk-adjusted metrics.
a) Absolute and CAGR Returns
Based on recent data:
- As per MoneyMine, as of 17 Nov 2025:
- 1-year return: ~12.66%
- 3-year CAGR: ~26.56%
- 5-year CAGR: ~28.18%
- Since inception (CAGR): ~17.82% moneymineinvestments.com
- According to MFOnline, as on 14 Nov 2025:
- 1-year: 11.8%
- 3-year: 26.17%
- 5-year: 28.33%
- 10-year: 18.58%
- Since launch: 17.78% mfonline.co.in
- From PersonalFN (as of 31 Oct 2025):
- Since inception return: ~17.74% p.a. PersonalFN
Comparison with benchmark (Nifty Midcap 150 TRI):
SIP RETURNS (NAV as on 20th November, 2025)
| Period Invested for | ₹1000 SIP Started on | Investments | Latest Value | Absolute Returns | Annualised Returns |
|---|---|---|---|---|---|
| 1 Year | 19-Nov-24 | 12000 | 13253.79 | 10.45 % | 19.8 % |
| 2 Year | 20-Nov-23 | 24000 | 28338.08 | 18.08 % | 16.83 % |
| 3 Year | 18-Nov-22 | 36000 | 50837.37 | 41.21 % | 23.69 % |
| 5 Year | 20-Nov-20 | 60000 | 112178.56 | 86.96 % | 25.28 % |
| 10 Year | 20-Nov-15 | 120000 | 380117.81 | 216.76 % | 21.81 % |
Source :- moneycontrol
- MFOnline data: Since launch, fund’s CAGR is ~17.78%, benchmark ~17.60%. mfonline.co.in
- This indicates that over a long term, the fund has closely tracked or marginally outperformed its benchmark.
b) Risk-Adjusted Returns
- As per Financial Express, the fund has shown lower volatility than many of its peers and even the benchmark. The Financial Express
- Risk metrics:
- Sharpe Ratio: Financial Express reports ~0.50. The Financial Express
- Sortino Ratio: ~1.09 as reported. The Financial Express
- Standard Deviation: ~14.56% (Financial Express) over a given period. The Financial Express
- According to ETMoney, the fund’s beta is ~0.86, suggesting it’s somewhat less sensitive to market swings compared to a standard benchmark. ET Money
- On downside protection: According to Reddit users, the fund has historically provided strong downside protection, e.g., “Over any 1 to 5 year period since … inception it has fallen less than the index almost 90-99% of times.” Reddit
- Such risk metrics highlight that HDFC Mid Cap Fund tends to balance growth and risk reasonably well — it’s not the highest return mid-cap, but among active funds, it’s more conservative and focused on sustainable returns.
4. Portfolio Composition
Understanding what’s inside the fund’s portfolio helps assess its opportunities and risks.
a) Sector Allocation
- The fund invests significantly in financial services, banking, auto components, healthcare, IT, and industrials. The Financial Express+1
- According to a recent breakdown: auto ancillaries + banking + healthcare + finance + IT form a large portion (~57% as per Financial Express). The Financial Express
b) Market Cap Allocation
- As previously mentioned: ~64.3% mid-cap, ~20.6% small-cap, ~5.4% large-cap, rest in cash (as of May 2025). The Financial Express
- This diversified allocation means while the fund is “mid-cap,” it’s not overly exposed only to the middle-tier companies — this adds diversification but also introduces risk from smaller companies.
c) Top Holdings in HDFC Mid Cap Fund
Based on recent data:
| Stock Invested in | Sector | Value(Mn) | % of Total Holdings | 1M Change | 1Y Highest Holding | 1Y Lowest Holding | Quantity | 1M Change in Qty |
|---|---|---|---|---|---|---|---|---|
| Max Financial Services Ltd. | Life insurance | 39888.7 | 4.46% | -0.30% | 5.02% (Jun 2025) | 3.54% (Dec 2024) | 2.58 Cr | 1.54 L |
| Au Small Finance Bank Ltd. | Other bank | 33095.9 | 3.70% | 0.54% | 3.7% (Oct 2025) | 1.32% (Dec 2024) | 3.77 Cr | 9.86 L |
| Indian Bank | Public sector bank | 31646.9 | 3.54% | 0.28% | 3.54% (Oct 2025) | 2.49% (Dec 2024) | 3.69 Cr | 0.00 |
| Federal Bank Ltd. | Private sector bank | 30244.7 | 3.38% | 0.47% | 3.51% (Nov 2024) | 2.91% (Sep 2025) | 12.78 Cr | 0.00 |
| Balkrishna Industries Ltd. | Tyres & rubber products | 30148.8 | 3.37% | -0.17% | 3.84% (Jul 2025) | 2.76% (Jun 2025) | 1.32 Cr | 1.27 L |
| Fortis Healthcare Ltd. | Hospital | 28475.6 | 3.19% | 0.01% | 3.19% (Oct 2025) | 2.09% (Nov 2024) | 2.78 Cr | 0.00 |
| Coforge Ltd. | Computers – software & consulting | 27775 | 3.11% | 0.18% | 3.72% (Dec 2024) | 2.93% (Sep 2025) | 1.56 Cr | 0.00 |
| Hindustan Petroleum Corporation Ltd. | Refineries & marketing | 26432.7 | 2.96% | 0.06% | 2.96% (Oct 2025) | 2.41% (Feb 2025) | 5.55 Cr | 0.00 |
| Glenmark Pharmaceuticals Ltd. | Pharmaceuticals | 23897.4 | 2.67% | -0.20% | 3.07% (Jul 2025) | 1.55% (Nov 2024) | 1.26 Cr | 1.66 L |
| Ipca Laboratories Ltd. | Pharmaceuticals | 22563.1 | 2.52% | -0.28% | 3.44% (Dec 2024) | 2.52% (Oct 2025) | 1.77 Cr | 0.00 |
Source :- moneycontrol
- Max Financial Services (~4.8%) The Financial Express
- Federal Bank (~3.2%) The Financial Express
- Coforge (~3.2%) The Financial Express
- Other names (as per ETMoney): Indian Bank, AU Small Finance Bank, Balkrishna Industries Ltd., The Federal Bank Ltd. ET Money
- Portfolio size: According to Financial Express, the fund holds ~76 stocks (as of May 2025), which is reasonably broad for a mid-cap fund and helps in diversification. The Financial Express
d) Turnover
- The reported turnover ratio is moderate, around 20–30% in recent years, as per Financial Express. The Financial Express
- A moderate turnover suggests that the fund managers are not constantly trading — instead, they hold their conviction in chosen names.
5. Fund Management Team in HDFC Mid Cap Fund
- The fund is co-managed by Amar Kalkundrikar and Chirag Setalvad. ET Money+1
- Amar Kalkundrikar: He has a background of B.Com, CA, CFA, and MBA from Columbia Business School. He has prior experience in multiple roles, including at Nippon India Mutual Fund and HDFC Mid Cap Fund AMC. ET Money
- Chirag Setalvad: He has been associated with HDFC Mid Cap Fund AMC for a long time, and his investment philosophy aligns with a bottom-up, quality, long-term conviction style. The Financial Express+1
- Their combined experience provides stability and maturity in the decision-making process for the fund.
6. Advantages of HDFC Mid Cap Fund
Here are some of the key strengths that make this fund attractive to investors:
- Long track record: Launched in 2007, the fund has navigated multiple market cycles, which gives investors confidence.
- Strong risk-adjusted returns: Its lower volatility relative to many mid-cap peers and better downside protection make it suitable for risk-aware investors.
- Diversified portfolio: With ~76 stocks and allocation across mid, small, and large-cap, it does not rely on a few names.
- Experienced management: The fund managers have deep domain experience and follow a clear, consistent strategy.
- Moderate expense ratio: While not the cheapest, the 1.36% regular plan is reasonable for an actively managed mid-cap fund.
- Flexible investment: Low minimum investment (₹ 100) and SIP-friendly, making it accessible.
- Proven comeback: The fund had a challenging stretch (2016–2021) but has rebounded strongly in recent years. The Financial Express+1
7. Potential Drawbacks / Risks
No fund is without risks. Some of the concerns or limitations for HDFC Mid Cap Fund include:
- Very high risk: As with all mid-cap funds, there is substantial volatility. Moneycontrol classifies it as “Very High Risk.” Moneycontrol
- Large AUM: With AUM ~ ₹ 89,000+ crore, liquidity could be a concern. Large AUM in mid/small-cap can limit how aggressively the fund can allocate to smaller companies. (This is a point raised by some investors on forums.) Reddit
- Exit load: 1% if redeemed within 1 year, which penalizes short-term investors.
- Expense ratio: While 1.36% is not very high for active funds, it’s still an added cost over passive or index funds.
- Market risk: In downturns, mid-cap stocks can suffer significantly, and while this fund has shown decent downside protection, it’s not immune.
- Concentration risk: Although the fund is diversified, top 5-10 holdings could still create concentration risk.
- Benchmark outperformance consistency: Not always guaranteed — beating the Nifty Midcap 150 TRI consistently is difficult, and there may be periods of underperformance. <br>Also worth noting from investor discussions: “Almost no active midcap fund beats the Nifty Midcap150 consistently by 70% or above margin on 1–5 year rolling returns … for long-term wealth creation, a pure Nifty Midcap150 Index fund is … one of the best ways to invest.” Reddit
- Liquidity in extreme stress conditions: In mid-cap and small-cap funds, redemptions in stressed markets could pose challenges. (This is a general risk in mid/small cap portfolios; SEBI stress test disclosures have shown varying liquidation times across AMCs.) Reuters
8. Ideal Investor Profile / Use Cases
Who should consider investing in HDFC Mid Cap Fund? Here are some use cases:
- Long-term wealth creators: Investors with a time horizon of 5–7 years or more who can tolerate volatility for potentially higher returns.
- Core mid-cap allocation: For someone wanting a strong, actively managed mid-cap fund as a core holding in their equity portfolio.
- SIP investors: Because of its low minimum SIP (₹ 100), it is accessible for retail investors building wealth gradually.
- Risk-aware growth investors: Those who want growth but not purely high-risk small-cap; this fund balances growth and risk.
- Balanced equity exposure: Can act as a complement to large-cap funds for diversification in an equity portfolio.
9. How to Invest in HDFC Mid Cap Fund
Here’s a practical guide to investing in HDFC Mid Cap Fund:
- Via Mutual Fund Platforms / Brokers: Use any broker or MF platform (online or offline) that offers HDFC Mid Cap Fund.
- SIP (Systematic Investment Plan): Set SIP for as low as ₹ 100. Great for regular investing.
- Lump Sum: Also possible with a minimum of ₹ 100.
- Plan Type: Choose between Regular and Direct plan. Direct is cheaper (no distributor commission), Regular has higher expense ratio.
- Exit Strategy: If redeeming within 1 year, plan for 1% exit load; after 1 year, exit is without load.
10. Comparison with Peers / Benchmark
To evaluate whether HDFC Mid Cap Fund is “good,” it helps to compare it with its benchmark and similar funds.
- Benchmark Comparison: The fund’s long-term CAGR (~17.8%) is quite comparable to Nifty Midcap 150 TRI (~17.6%) as per MFOnline. mfonline.co.in
- Peer Comparison:
- On Reddit, some investors compare it with Motilal Oswal Midcap Fund, and argue that while Motilal may offer slightly higher returns, HDFC Mid Cap Fund is safer (lower volatility). Reddit+1
- Others also point that large AUM might limit HDFC Mid Cap Fund agility compared to smaller mid-cap funds. Reddit
- Passive Option: Some argue for a Nifty Midcap 150 Index Fund instead of active funds because of lower cost and consistent exposure. Reddit
- Risk-Adjusted Metrics: Given its Sharpe / Sortino / standard deviation profile, HDFC Mid Cap Fund strikes a decent balance for active risk-managed mid-cap investing.
11. Recent Developments & Trends
- AUM Growth: The fund’s AUM has ballooned to nearly ₹ 89,383 Cr (Regular) as of Oct/Nov 2025. The Economic Times+1
- Mid-cap Inflows Trend: According to AMFI data (reported in media), mid-cap funds have been receiving strong inflows — for example, in August 2025, midcap funds saw a record monthly inflow of ₹ 5,331 crore. The Economic Times
- Stress Test Disclosure: As part of regulatory transparency, mid-cap fund houses are disclosing stress test results (i.e., liquidation timelines) to assess liquidity risk. Reuters
- Fund Recovery: After a sluggish period between 2016–2021, HDFC Mid Cap Fund has staged a strong recovery in recent years, both in absolute returns and risk-adjusted performance. The Financial Express+1
12. Conclusion
HDFC Mid Cap Fund (HDFC Mid Cap Fund Opportunities) is a well-established, large-mid-cap active fund that offers a compelling mix of growth and risk management. Its long track record, strong management team, and diversified portfolio make it a strong candidate for investors seeking mid-cap exposure.
- For long-term investors (5+ years), it can be a core mid-cap holding.
- For SIP investors, its low minimum makes it highly accessible.
- However, the high AUM and moderate cost are factors to keep in mind.
- Investors should also assess their risk tolerance — while the fund manages downside relatively well, mid-caps inherently carry more risk than large-caps.
Verdict: A solid, mature, and well-managed mid-cap fund capable of delivering consistent growth, especially suitable for investors who want active management and are comfortable with equity risk over a medium to long-term horizon (HDFC Mid Cap Fund)
Disclaimer
The content is for informational purposes only and should not be taken as financial advice. Investments in mutual funds are subject to market risks. Past performance does not guarantee future results. Investors should consult a certified financial advisor before making investment decisions. Trendingadda.in ट्रेंडिंगअड्डा डॉट इन is not responsible for any investment outcomes based on this content.”
