I could not go back 10 years but took a look at 5 years and here is the comparison of HDFC Midcap Opps Direct Growth vs Direct growth TOP fund of the midcap cat fund in that year…
| 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|
| HDFC Midcap Opps Direct Growth | 22.58 | 40.88 | 13.09 | 45.45 | 13.2 |
| PGIM, PGIM, Quant, Nippon, Quant | 51.13 | 66.92 | 19.94 | 49.76 | 26.3 |
| Difference | 28.55 | 26.04 | 6.85 | 4.31 | 13.1 |
Over 5 years, this works to 15% difference on an average. There will be taxes, when you switch like this but assuming that anyway you will pay taxes, even if one exits from HDFC fund eventually (and the difference can be at best 5% between LTCG vs STCG)…My quick conclusion – the difference between top fund and HDFC fund is not much, in years, when the entire category does not perform. In years, where there is outlier out-performance, the difference is much more stark…
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