Now Reading: HDFC Mid Cap hits Rs 1 lakh crore AUM; experts say size not key
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HDFC Mid Cap hits Rs 1 lakh crore AUM; experts say size not key
HDFC Mid Cap hits Rs 1 lakh crore AUM; experts say size not key
HDFC Mid Cap Fund has crossed Rs 1 lakh crore in assets under management, becoming the fourth active mutual fund scheme to reach the milestone after Parag Parikh Flexi Cap, HDFC Flexi…
The Story in Brief
HDFC Mid Cap Fund has crossed Rs 1 lakh crore in assets under management, becoming the fourth active mutual fund scheme to reach the milestone after Parag Parikh Flexi Cap, HDFC Flexi Cap and HDFC Balanced Advantage Fund. The feat has raised a question for investors: can a fund become too large to deliver strong returns?
Experts say investors should not avoid a fund merely because of its size. Bharath Rathore of Anand Rathi Wealth noted that large-cap funds of similar AUM have delivered very different outcomes, with ICICI Prudential Large Cap outperforming despite being the biggest. Sriram BKR of Geojit Financial Services cautioned that size can hurt in less liquid segments. Both advise assessing risk-adjusted returns, consistency and portfolio quality over AUM.
The Indian Opinion
The Rs 1 lakh crore HDFC Mid Cap milestone has triggered familiar hand-wringing about size. But the data does not support a panic. Funds of similar AUM often perform very differently, as the experts themselves point out. The lazy narrative is that bigger must mean worse, yet the real test is whether the market can absorb the flows. Watch how the fund's performance against its benchmark and peers holds over the next year, especially in mid-cap volatility. If it beats the index on downside protection, size is a non-issue. If it lags, question the strategy, not just the AUM.
Source: livemint.com
This story was synthesised by AI from the source linked above.
