HDFC Diversified Equity All Cap Active FOF NFO
NFO Key Details
Scheme Name: HDFC Diversified Equity All Cap Active Fund of Fund – Direct (Growth)
Fund Type: Open-ended Fund of Fund (FoF), investing in equity-oriented mutual funds across large-cap, mid-cap, and small-cap categories.
NFO Open Date: 10th September 2025
NFO Close Date: 24th September 2025
Minimum Investment: ₹100 and in multiples thereafter
Maximum Investment: No upper limit (investors can apply with larger amounts based on their risk appetite)
Exit Load:
1% if redeemed or switched out within 1 year
Nil after 1 year
Risk Level: Very High (as it invests fully in equities)
Benchmark: Combination of indices across large, mid, and small caps (as per allocation).
Investment Objective & Strategy
The primary objective of the fund is to generate long-term capital appreciation by investing in a diversified portfolio of domestic equity-oriented funds across market capitalisations.
The strategy involves:
All-Cap Exposure in One Fund
The fund will allocate investments across large-cap funds (stability & steady growth), mid-cap funds (growth opportunities), and small-cap funds (high-risk, high-reward potential).
Framework-Driven Allocation
Unlike individual investors who often chase past performance, the fund follows a rule-based allocation strategy. This reduces behavioral mistakes like over-investing in small caps during bull runs or panicking during corrections.
Professional Rebalancing
Market conditions change rapidly. The fund managers will dynamically rebalance exposure between large, mid, and small caps depending on valuations and growth prospects.
Simplicity & Convenience
Instead of managing 3–4 different equity funds, investors can own just one fund and still enjoy diversification across all caps.
Why Should You Consider This Fund?
Diversification Without Hassle
Normally, investors need to buy large-cap, mid-cap, and small-cap funds separately. This FoF combines all three in one portfolio.
Reduced Behavioral Biases
Many retail investors sell in panic during volatility or chase past returns. This fund eliminates that bias by maintaining a balanced allocation.
Accessibility for Small Investors
Minimum investment is just ₹100, making it highly accessible. Even first-time investors can start small and gradually increase exposure.
Active Rebalancing Advantage
Markets are cyclical. Small caps may outperform in one phase, while large caps dominate in another. Active rebalancing ensures investors don’t miss out on opportunities while controlling risk.
Professional Management by HDFC AMC
With decades of experience, HDFC AMC has a proven track record of disciplined fund management.
Who Should Invest in This Fund?
This fund is suitable for:
First-time equity investors who want a single fund to cover all market caps.
Busy professionals who don’t want to track and rebalance multiple equity schemes.
Long-term wealth creators who can stay invested for 5–7 years or more.
Moderate to aggressive investors with the capacity to handle short-term volatility for long-term gains.
Risks to Keep in Mind
Very High Risk: Being 100% equity-focused, the fund may see sharp ups and downs in the short term.
Dependent on Underlying Funds: Since this is a Fund of Fund, performance depends on how the underlying large-cap, mid-cap, and small-cap schemes perform.
Higher Expense Ratio vs Direct Equity Funds: As FoFs invest in other schemes, their expense ratios may be slightly higher compared to investing directly in individual equity funds.
Should You Invest?
If you’re looking for:
Long-term capital appreciation
Diversified exposure across large, mid, and small caps
Professional rebalancing and hassle-free investing
…then HDFC Diversified Equity All Cap Active FoF can be a smart choice.
It is particularly useful for investors who don’t want to worry about market timing or choosing between different equity segments. However, if you are an experienced investor comfortable managing a multi-fund portfolio yourself, you may prefer investing separately in dedicated large-cap, mid-cap, and small-cap funds.
Final Verdict
The HDFC Diversified Equity All Cap Active FoF – Direct (G) is a convenient, disciplined, and structured solution for investors seeking long-term equity growth through a single product. With its low entry barrier of ₹100, active rebalancing, and diversification benefits, it simplifies equity investing for both beginners and seasoned investors.
Just remember: equity markets require patience and long-term commitment. Stay invested for at least 5+ years to truly benefit from the compounding and diversification this fund offers.
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