How does HDFC Midcap Opportunities Fund Make Your Portfolio Better?

Midcap funds have always been a very important segment of mutual fund investments. They provide the power to earn better returns, thus making the portfolio more potent towards achieving goals of the investors. Considering the need and demand of the mid cap funds in the market, many AMCs have come up with midcap schemes, however, not all of them being successful in catering to the needs of their clients. HDFC Midcap Opportunities Fund, on the other hand, is a scheme that appeals to a larger crowd of investors. It has already won massive following and investments are being poured in this fund in crores, every year. This article is meant to shed light on one of the most talked about funds in the market. From discussing the best points to highlighting some grey areas, we’d cover a lot in this write-up. A Brief Introduction Mid cap mutual funds have been known as a powerful vessel to turn your wealth into a colossal pool of money. They function on the principle of tapping ravishing opportunities in some of the most flourishing areas of the market, say banking and technology, through companies that have just begun their operations in these sectors but have covered the prelim stage of existence. HDFC Midcap Opportunities Fund (G) is a high-performing scheme in the realm of midcap funds. It is one of the many powerful schemes launched by HDFC Mutual Fund, one of the largest asset management companies in India. The fund was started more than a decade ago in 2007, with an objective to make wealth for the investors by leveraging on promising, mid-sized companies. Some Important Facts to Ponder Upon When you are planning an investment in mutual funds, or for that matter in any vehicle, having a knowledge about the ins and outs of that vehicle bears a critical importance. Without having a proper knowledge of them, you can’t make a plan that is attuned to your needs. Hence, to make sure that you move towards the right direction in your investments, here are some points about HDFC Midcap Opportunities Fund – Regular Plan (Growth) that you must bear in mind: - The NAV The NAV or the Net Asset Value is a price that you pay for acquiring a stake in the funds. This value isn’t stagnant, and keeps on changing on a daily basis depending upon the market influences. The per unit price of buying a stake in HDFC Midcap Opportunities Fund (G) is Rs. 52.848, as recorded on January 4th, 2019. The AUM The strength of a fund lies in the corpus managed by it, since a larger corpus will provide more strength to excavate more opportunities. The current AUM (assets under management) at HDFC Midcap Opportunities Fund is Rs. 20, 321 crore – a gigantic figure for a single scheme to hold. This denotes that the fund has a lot of space to expand due to superior liquidity available, and hence can provide better growth prospects to the investors. The Performance Graph The main reason why a person would choose to invest in mutual funds is, of course, the returns. If the returns are high, then anybody will be lured to invest. A little digging spewed out that in the past, HDFC Midcap Opportunities Fund – Regular Plan (G) has been a star performer in the midcap category in India. It achieved the mark of 21.11% in the last five years, whereas the benchmark (NIFTY Midcap 100 TRI) stood far behind with 18.57% returns, while the peers settled at 19.72%. The Risk While the above points might have glistened your eyes, there’s something more above this positivity that you ought to know before proceeding with an investment in HDFC Midcap Opportunities Fund. Since it belongs to the aggressive midcap fund category, the fund tends to be high on the risk exposure. Although good fund management decisions and timely corrective actions keep the risks at bay, chances are you might feel the heat of the volatility on your funds if conditions worsen. Hence, if you wish to proceed with an investment in HDFC Midcap Opportunities Fund, be prepared to withhold some bruises. Rest assured, it will all be worth it! The aim of the article is to discuss some important facts about one of the top recommendations in the midcap fund category, HDFC Midcap Opportunities Fund (Growth). The fund has been rated high by many online investment forums, and has been well received at the reception. With proper planning, you can make a powerful plan together with this fund.