HDFC Manufacturing Fund
Direct · GrowthAI Summary
HDFC Manufacturing Fund has delivered a 1Y SIP XIRR of 9.6%, which trails the category average SIP XIRR of 10.69%. Against the NIFTY 50, the fund shows strong relative performance with a 1Y alpha of 13.55% (Fund CAGR 1.93% vs benchmark -11.43%) and consistent positive alpha across all longer horizons, including 3Y alpha of 3.54% and 5Y alpha of 2.05%. However, absolute lump-sum returns remain modest, with a 3Y Fund CAGR of 4.27%.
The fund exhibits a favorable downside profile with a downside capture of 86.15% (1Y) and 93.46% (longer horizons) versus upside capture near 100%, indicating it falls less than the benchmark in weak markets. Only one drawdown event exceeding 10% has occurred, with a maximum drawdown of -21.54% that took 432 days to recover. The 1Y Calmar ratio of 0.3232 suggests moderate risk-adjusted returns relative to the depth of its worst drawdown.
The portfolio is diversified across 82 holdings, with the top 10 positions totaling roughly 32.6% of NAV, led by Divis Laboratories (6.01%) and Reliance Industries (4.5%). Sector exposure is spread across Pharmaceuticals (14.8%), Automobiles (13.0%), Auto Components (8.6%), Aerospace & Defense (8.4%), and Petroleum Products (8.0%), reflecting a broad manufacturing mandate. No single sector dominates excessively, though autos and pharma together account for nearly 28% of the portfolio.
The fund's 1Y SIP XIRR of 9.6% lags the category average of 10.69%, placing it below peers on the primary return metric for the recent period. Its consistent positive alpha versus NIFTY 50 across 1Y to 15Y horizons suggests disciplined stock selection relative to the broad market. Calendar year returns have been positive but modest (2024: 3.39%, 2025: 7.49%, 2026: 1.71%), indicating steady rather than spectacular performance.
This fund suits investors seeking thematic exposure to India's manufacturing and industrial growth story, ideally as a satellite holding rather than a core portfolio position. A time horizon of at least 5-7 years is appropriate given the sectoral nature and the 432-day recovery from the maximum drawdown. Investors should have a moderate-to-high risk tolerance, as thematic funds can underperform diversified peers during unfavorable sector cycles.
- Consistent positive alpha versus NIFTY 50 across all measured horizons, including 13.55% in 1Y and 3.54% over 3Y
- Favorable downside capture of 86.15% (1Y) and 93.46% (longer term), cushioning losses in weak markets
- Well-diversified portfolio of 82 holdings with no single stock exceeding 6.01% of NAV
- 1Y SIP XIRR of 9.6% trails the category average of 10.69%, indicating underperformance versus sectoral/thematic peers
- Long recovery time of 432 days from the -21.54% maximum drawdown highlights extended downside risk during weak cycles
Generated on 21-10-2026, 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 | ₹12.58 L | 9.1% | -25.3% | 22.8% |
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 | 9.1% | 14.3% | 10.7% | -5.1% |
| Duration | Mean | Median | Min | Max | Sharpe | Sortino | % Positive | Cat. Mean | Cat. Median |
|---|---|---|---|---|---|---|---|---|---|
| 1 Year | 7.0% | 7.0% | -4.2% | 23.5% | 0.08 | 0.12 | 86% | — | — |
Calmar Ratio by Duration
Compared against NIFTY 50
| Duration | Alpha | Beta | Upside Capture | Downside Capture | Fund CAGR | Bench CAGR |
|---|---|---|---|---|---|---|
| 1 Year | +13.55 | 1.01 | 103.2% | 86.2% | 1.9% | -11.4% |
| 3 Years | +3.54 | 0.98 | 99.9% | 93.5% | 4.3% | 0.6% |
| 5 Years | +2.05 | 0.98 | 99.9% | 93.5% | 2.5% | 0.4% |
| 7 Years | +1.42 | 0.98 | 99.9% | 93.5% | 1.8% | 0.3% |
| 10 Years | +0.95 | 0.98 | 99.9% | 93.5% | 1.3% | 0.2% |
| 12 Years | +0.77 | 0.98 | 99.9% | 93.5% | 1.1% | 0.2% |
| 15 Years | +0.60 | 0.98 | 99.9% | 93.5% | 0.8% | 0.1% |
| # | Stock | % of NAV |
|---|---|---|
| 1 | Divis Laboratories Ltd. | 6.01% |
| 2 | Reliance Industries Ltd. | 4.50% |
| 3 | Mahindra & Mahindra Ltd. | 3.50% |
| 4 | Maruti Suzuki India Limited | 3.33% |
| 5 | JSW Steel Ltd. | 3.29% |
| 6 | Tata Motors Limited | 2.87% |
| 7 | Bharat Electronics Ltd. | 2.42% |
| 8 | Hindustan Aeronautics Limited | 2.38% |
| 9 | Bajaj Auto Limited | 2.22% |
| 10 | Cummins India Ltd. | 2.06% |