3 weeks ago
HDFC Mid Cap crosses ₹1 lakh crore AUM milestone
A mutual fund is like a big basket where many people keep money together to invest in companies.
The HDFC Mid Cap Fund is one such basket, and it became very big, crossing ₹1 lakh crore in money.
Only three other mutual funds in India have ever grown that large.
Some people wondered whether such a big fund can still earn good returns.
Two experts who study money say the size of the fund does not decide how well it performs.
They say smart choices about which stocks to buy matter more than size.
However, one expert explained that if a fund becomes really huge, it may be hard to invest all the money if not enough good stocks are available.
Data shows that many very large funds still perform very well.
So the experts advise investors not to stop investing in a fund just because it has grown big.
HDFC Mid Cap Fund crossed ₹1 lakh crore in AUM, becoming the fourth active mutual fund scheme to reach the milestone.
The other schemes at this level are Parag Parikh Flexi Cap Fund, HDFC Flexi Cap Fund and HDFC Balanced Advantage Fund.
Experts say investors should not avoid a fund simply because of its size, but a very large corpus can matter in markets with limited depth or liquidity.
Data shows no straightforward relationship between AUM and underperformance; ICICI Prudential Large Cap Fund was a top performer in 2025 despite being the largest in its category.
Instead of AUM, experts advise reviewing risk-adjusted returns, the Information Ratio, active share, consistency and portfolio quality.
- Who
- HDFC Mid Cap Fund; commentary from Bharath Rathore (executive director, Anand Rathi Wealth) and Sriram BKR (senior investment strategist, Geojit Financial Services).
- What
- HDFC Mid Cap Fund crossed the ₹1 lakh crore AUM milestone, and experts discussed whether a very large fund can still deliver strong returns.
- Where
- India, in the Indian mutual fund industry (the fund is managed by HDFC Mutual Fund).
- When
- Exact date of the milestone is not stated in the article; fund performance data cited is as of June–July 2026.
- Why
- The milestone raised questions for investors about whether a fund can become too large to perform, prompting experts to advise looking beyond AUM.
AUM size does not determine performance
AUM size can become a concern
Can a mutual fund be too large to deliver strong returns?
AUM size does not determine performance
Investors should not avoid a fund simply because its AUM crossed ₹1 lakh crore; fund size does not by itself determine performance, funds of similar AUM deliver very different outcomes, and data shows no straightforward link between size and underperformance. Portfolio decisions, not corpus size, drive returns (Bharath Rathore).
AUM size can become a concern
A very large corpus can matter in segments where the underlying market has limited depth or liquidity, making it difficult to deploy the funds; if AUM becomes exceptionally large and the target segment cannot absorb the flows, size becomes a problem (Sriram BKR).
Key facts
- Fund
- HDFC Mid Cap Fund
- Milestone
- Crossed ₹1 lakh crore in AUM
- Position
- Fourth active mutual fund scheme to reach the ₹1 lakh crore AUM level
- Other funds at the milestone
- Parag Parikh Flexi Cap Fund, HDFC Flexi Cap Fund, HDFC Balanced Advantage Fund
- Mid-cap mandate
- At least 65% exposure to mid-cap stocks
- Experts quoted
- Bharath Rathore (Anand Rathi Wealth), Sriram BKR (Geojit Financial Services)
- Metrics suggested instead of AUM
- Sharpe and Sortino ratios, Information Ratio, active share, alpha consistency, downside protection, portfolio quality
Quotes
Bharath Rathore
Executive director at Anand Rathi Wealth
“Investors should not judge a fund by how large it has become but by how well it is being managed,”
livemint.com
“Funds of similar AUM may deliver very different outcomes,”
livemint.com
Sources
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