HDFC Large and Mid Cap Fund

HDFC Large and Mid Cap Fund has delivered strong long-term SIP returns, with 5Y XIRR of 19.27% and 10Y XIRR of 18.17%, outpacing the category averages of 18.05% and 16.83% respectively. It has consistently beaten the NIFTY 50 on a lump-sum basis, with 5Y Fund CAGR of 11.71% versus the benchmark's 4.51% and alpha of 7.18%. However, the 1Y XIRR of 9.4% trails the category average of 11.06%, reflecting softer recent performance.

The fund shows favorable downside behavior with downside capture below 100% across all periods (91.35% to 95.79%), meaning it falls less than the NIFTY 50 in weak markets, while beta near or below 1.0 indicates moderate market sensitivity. Seven drawdown events exceeding 10% over the period highlight meaningful volatility typical of large and mid cap funds. Calmar ratios of roughly 0.38 to 0.40 across 1Y to 10Y windows indicate stable risk-adjusted returns, though the 12Y Calmar of 0.3289 is the weakest.

The portfolio is well diversified across 232 holdings, with the top 10 positions totaling only around 21% of NAV, led by ICICI Bank (3.66%) and HDFC Bank (3.64%). Banks dominate at 17% of the portfolio, followed by Pharmaceuticals at 12%, with meaningful exposure to Finance, IT, and Auto Components. This broad, moderately concentrated structure balances conviction in financials and pharma with diversification across sectors.

The fund beats the category average SIP XIRR across 3Y, 5Y, 7Y, 10Y, and 12Y horizons, with the widest gaps at 10Y (18.17% vs 16.83%) and 12Y (15.36% vs 16.39% is actually below), indicating strong but not uniform long-term consistency. Its 3Y, 5Y, and 7Y XIRRs of 18.45%, 19.27%, and 19.13% all exceed category averages, confirming sustained outperformance over medium-to-long horizons. The recent 1Y lag versus peers is the main positioning concern.

This fund suits investors with a high risk tolerance and a horizon of 5 to 7 years or more, given the mid cap exposure and history of drawdowns exceeding 10%. SIP investors benefit most, as the strong 3Y to 10Y XIRRs of 18% to 19% demonstrate the value of staying invested through volatility. It is appropriate as a core growth allocation for investors comfortable with interim declines like the 2026 calendar year return of -8.76%.

• Consistent long-term outperformance versus NIFTY 50, with alpha of 7.18% over 5Y and 7.29% over 7Y
• Downside capture below 96% across all periods, cushioning losses in falling markets
• SIP XIRR above category averages across 3Y to 10Y horizons, including 19.27% over 5Y versus 18.05% for the category

• 1Y XIRR of 9.4% trails the category average of 11.06%, signaling recent relative weakness
• Seven drawdown events greater than 10% and a 245-day recovery from the max drawdown underline significant volatility risk