Invest in HDFC Focused Fund
Today’s standout option is the HDFC Focused Fund Direct – Growth, thanks to its strong 5-year track record of ~28.4% annualized returns and consistent performance across 1- and 3-year horizons.
HDFC Focused Fund Direct – Growth
• 5-year return: 28.43%
• 3-year return: 22.58%
• 1-year return: 9.83%
Why it’s strong:
Focused funds invest in 20–30 high-potential companies, allowing managers to closely monitor performance. This concentrated strategy has delivered superior long-term returns compared to broader funds.
• Best for: Investors with moderate-to-high risk appetite who want growth through quality stock selection.
HDFC Focused Fund Direct–Growth is best suited for aggressive investors because it invests in a concentrated portfolio of up to 30 high-conviction stocks across large, mid, and small caps, aiming for superior long-term growth. Its current expense ratio is 0.61% (as of Oct 31, 2025).
🔎 Why It Appeals to Aggressive Investors
• Focused Strategy: Unlike diversified equity funds that hold 50–100 stocks, this fund limits itself to ~30 companies. This concentration magnifies both upside potential and downside risk, making it ideal for investors comfortable with volatility.
• Multi-Cap Flexibility: The fund can invest across large, mid, and small-cap segments, giving it the freedom to chase growth opportunities wherever they arise.
• High Risk–High Reward: The fund is rated “Very High” on the Riskometer, meaning it suits investors who can withstand short-term fluctuations for the chance of higher long-term returns.
• Track Record: Since inception (2013), it has delivered ~16% annualized returns, consistently outperforming many peers.
• Alpha Generation: By betting on fewer but stronger ideas, the fund manager can generate alpha compared to passive index investing, which appeals to aggressive investors seeking market-beating returns.
📊 Expense Ratio & Costs
- Expense Ratio (Direct Plan): 0.61%
- Expense Ratio (Regular Plan): Higher, due to distributor commissions
- Exit Load: 1% if redeemed within 1 year
- Minimum Investment: SIP ₹500, Lumpsum ₹1,000