HDFC Focused Fund
Direct · GrowthAI Summary
HDFC Focused Fund has delivered strong SIP XIRR across horizons, with 16.72% over 3Y and 17.83% over 10Y, consistently beating category averages (16.40% and 15.79% respectively). Against the NIFTY 50, the fund shows substantial alpha, including 12.02% over 5Y and 9.76% over 3Y, with Fund CAGR of 19.63% versus the benchmark's 7.83% over 5Y. Even in the weak 1Y period, the fund returned 20.42% XIRR while the benchmark CAGR was negative at -2.9%.
The fund exhibits defensive characteristics with a beta below 1 across all periods (0.83-0.94) and consistently lower downside capture than upside capture, such as 74.07% downside versus 88.96% upside over 5Y. Seven drawdown events exceeding 10% indicate meaningful interim volatility typical of equity funds, and the maximum drawdown recovery took 316 days within an 805-day drawdown window. Positive alpha across all measured periods from 1Y to 15Y suggests the risk taken has been well compensated on a risk-adjusted basis.
The 28-stock focused portfolio is heavily weighted toward banks, which account for 36.4% of assets, with the top five holdings all being banks (ICICI Bank 9.36%, HDFC Bank 7.64%, Axis Bank 6.6%). Beyond financials, the fund holds diversified positions in Eternal (4.68%), HCL Technologies (4.1%), InterGlobe Aviation (3.9%), Maruti Suzuki (3.75%), and Sun Pharma (3.7%). The concentrated banking exposure is the portfolio's defining feature and a key driver of both performance and sector risk.
The fund outperforms the category average SIP XIRR at every measured horizon, with the widest gaps over 10Y (17.83% vs 15.79%) and 12Y (17.48% vs 15.27%). Calendar year returns show strong consistency, with double-digit gains in 2021 (41.1%), 2023 (30.78%), 2024 (25.4%), and 2017 (39.69%), though down years in 2018 (-13.52%) and 2013 (-3.02%) occurred. This long-term consistency across multiple market cycles positions it among the stronger performers in the Focused Fund category.
This fund suits investors seeking a concentrated, actively managed equity portfolio with a proven long-term track record and moderate downside protection. A minimum horizon of 5-7 years is advisable given the equity exposure and historical drawdown events, and investors should be comfortable with interim volatility. Those with moderate-to-high risk tolerance who want focused exposure with a meaningful banking tilt will find this fund appropriate, but should avoid treating it as a low-volatility option.
- Consistent alpha over the NIFTY 50 across all periods, peaking at 12.02% over 5Y
- SIP XIRR above category averages at every horizon from 1Y through 12Y
- Favorable asymmetry with downside capture of 74.07% versus upside capture of 88.96% over 5Y
- Heavy sector concentration in banks at 36.4% of the portfolio creates vulnerability to financial sector downturns
- Seven drawdown events exceeding 10% with a maximum drawdown recovery period of 316 days highlight meaningful interim losses
Generated on 03-09-2026, 3:10 AM. Verify before investing.
Gives more importance to longer time periods (10Y, 20Y) than shorter ones (1Y, 3Y). This balances out recent outperformance and gives a more realistic picture of what long-term returns might look like.
The largest peak-to-trough decline in the fund's NAV. Shows the worst-case loss an investor would have experienced at any point in the fund's history.
If you invested ₹1,00,000 every month via SIP, here's how this fund has historically performed across different time horizons.
| Duration | Invested | Median Value | XIRR | Min XIRR | Max XIRR |
|---|---|---|---|---|---|
| 1 Year | ₹12.00 L | ₹12.91 L | 20.4% | -63.9% | 123.2% |
| 3 Years | ₹36.00 L | ₹46.14 L | 16.7% | -28.8% | 37.6% |
| 5 Years | ₹60.00 L | ₹90.42 L | 16.3% | -14.0% | 34.5% |
| 7 Years | ₹84.00 L | ₹1.51 Cr | 16.2% | -5.2% | 26.6% |
| 10 Years | ₹1.20 Cr | ₹3.08 Cr | 17.8% | 14.1% | 21.0% |
| 12 Years | ₹1.44 Cr | ₹4.49 Cr | 17.5% | 15.1% | 19.0% |
SIP returns vs benchmark & category
Annualised SIP return (XIRR) over each rolling horizon — like-for-like, not lump-sum.
| Duration | Fund SIP XIRR | NIFTY 50 | Category avg | Fund edge |
|---|---|---|---|---|
| 1 Year | 20.4% | 14.4% | 17.0% | +6.0% |
| 3 Years | 16.7% | 11.1% | 16.4% | +5.6% |
| 5 Years | 16.3% | 10.4% | 15.3% | +5.9% |
| 7 Years | 16.2% | 10.6% | 15.2% | +5.6% |
| 10 Years | 17.8% | 11.5% | 15.8% | +6.4% |
| 12 Years | 17.5% | 11.4% | 15.3% | +6.1% |
| Duration | Mean | Median | Min | Max | Sharpe | Sortino | % Positive | Cat. Mean | Cat. Median |
|---|---|---|---|---|---|---|---|---|---|
| 1 Year | 19.3% | 16.1% | -38.5% | 93.4% | 0.56 | 1.65 | 83% | — | — |
| 3 Years | 16.7% | 17.2% | -11.2% | 41.6% | 0.99 | 3.11 | 91% | — | — |
| 5 Years | 15.6% | 14.8% | -2.7% | 36.8% | 1.15 | 6.95 | 99% | — | — |
| 10 Years | 16.1% | 15.9% | 13.6% | 18.8% | 8.10 | — | 100% | — | — |
Calmar Ratio by Duration
Compared against NIFTY 50
| Duration | Alpha | Beta | Upside Capture | Downside Capture | Fund CAGR | Bench CAGR |
|---|---|---|---|---|---|---|
| 1 Year | +4.49 | 0.94 | 92.7% | 85.4% | 2.1% | -2.9% |
| 3 Years | +9.76 | 0.83 | 87.5% | 74.1% | 17.3% | 7.8% |
| 5 Years | +12.02 | 0.83 | 89.0% | 74.1% | 19.6% | 7.8% |
| 7 Years | +8.59 | 0.88 | 91.6% | 82.4% | 19.8% | 11.8% |
| 10 Years | +4.75 | 0.90 | 93.2% | 87.5% | 15.1% | 10.8% |
| 12 Years | +4.48 | 0.92 | 95.2% | 89.7% | 14.0% | 9.8% |
| 15 Years | +3.85 | 0.94 | 97.1% | 92.2% | 13.4% | 9.7% |
| # | Stock | % of NAV |
|---|---|---|
| 1 | ICICI Bank Ltd. | 9.36% |
| 2 | HDFC Bank Ltd.£ | 7.64% |
| 3 | Axis Bank Ltd. | 6.60% |
| 4 | Kotak Mahindra Bank Limited | 5.28% |
| 5 | State Bank of India | 5.20% |
| 6 | Eternal Limited | 4.68% |
| 7 | HCL Technologies Ltd. | 4.10% |
| 8 | InterGlobe Aviation Ltd. | 3.90% |
| 9 | Maruti Suzuki India Limited | 3.75% |
| 10 | Sun Pharmaceutical Industries Ltd. | 3.70% |