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Different portfolios, same outcome: HDFC, HSBC and Kotak midcap funds deliver 20% CAGR since 2013
7 min read | Updated on July 29, 2026, 14:49 IST
SUMMARY
Only one stock is common to all three funds' top 10 holdings, and five stocks overlap across at least two funds, indicating the the three funds are selecting different companies despite sharing some common investment themes.
Federal Bank is the only stock that appears in top 10 holdings of all three funds.
Can different mutual funds achieve similar long-term returns despite having different portfolios and investment approaches? It's a subjective question, and there is no definitive answer, especially when it comes to future returns. However, historical data suggests that the possibility of generating similar returns from different portfolios cannot be ruled out.
Before reading further, please note this article is intended solely for educational and informational purposes. It should not be construed as a recommendation to invest in any of the schemes mentioned.
But first, lets have a closer look at their performance across different time periods since inception:
Return comparison
| Fund | Since Inception CAGR (%) | 5-Year (%) | 3-Year (%) | 1-Year (%) |
|---|---|---|---|---|
| HDFC Mid Cap Fund | 20.36 | 20.53 | 19.46 | 8.34 |
| HSBC Mid Cap Fund | 20.08 | 19.11 | 24.49 | 19.45 |
| Kotak Mid Cap Fund | 20.24 | 18.18 | 20.20 | 9.12 |
Despite different portfolios, all three funds have delivered almost similar since-inception returns of around 20% CAGR, though their short-term performances have varied considerably.
| Fund | Best 1-Year Return (%) | Worst 1-Year Return (%) | Best Quarterly Return (%) | Worst Quarterly Return (%) |
|---|---|---|---|---|
| HDFC Mid Cap Fund | 102.00 | -32.00 | 34.44 | -30.68 |
| HSBC Mid Cap Fund | 103.26 | -29.76 | 37.33 | -29.51 |
| Kotak Mid Cap Fund | 110.63 | -25.74 | 35.81 | -30.62 |
The direct plan of HDFC Mid Cap Fund delivered its best one-year return of 102% from September 3, 2013 to September 3, 2014. Its best quarterly return of 34.44% was recorded between May 22, 2020, and August 8, 2020. The scheme witnessed its worst one-year return of -32% during the period from March 22, 2019, to March 3, 2020. Its worst quarterly return of -30.68% was recorded between December 12, 2019 and March 3, 2020.
Portfolio comparison
As of June 30, 2026, HDFC Mid Cap Fund had 63.21% allocation towards midcap stocks, 10.67% towards large-cap stocks, and 18.2% in small-cap stocks. HSBC's scheme had 61.51% allocation towards midcap stocks, 15.19% towards large-cap stocks, and 22.28% in small-cap stocks, while Kotak Mid Cap Fund had 67.62% allocation towards midcap stocks, 14.54% towards large-cap stocks, and 15.76% in small-cap stocks.
| HDFC Mid Cap Fund | HSBC Mid Cap Fund | Kotak Mid Cap Fund |
|---|---|---|
| Federal Bank (4.18%) | FSN E-Comm. Ventur. (4.67%) | Fortis Healthcare (3.98%) |
| Max Financial Serv. (4.10%) | Federal Bank (4.21%) | Ipca Laboratories (3.11%) |
| AU Small Fin. Bank (4.08%) | GE Vernova T&D India (3.99%) | Vishal Mega Mart (3.06%) |
| Balkrishna Inds. (3.10%) | Lenskart Solutions (3.84%) | GE Vernova T&D India (2.84%) |
| Fortis Healthcare (3.07%) | PB Fintech (3.76%) | KEI Industries (2.80%) |
| Ipca Laboratories (3.05%) | Piramal Finance (3.66%) | L&T Finance (2.78%) |
| Indian Bank (2.98%) | Aditya Infotech (3.54%) | Federal Bank (2.56%) |
| Glenmark Pharma. (2.93%) | Billionbrains Garage (3.28%) | Mphasis (2.54%) |
| Vishal Mega Mart (2.64%) | Bharat Forge (3.19%) | Bank of Maharashtra (2.32%) |
| Cummins India (2.52%) | Meesho (2.87%) | Solar Industries Ind (2.25%) |
Federal Bank is the only stock that appears in all three funds, although with varying weights. The top 10 holdings of all three funds show a preference for financial services and banking businesses, reflected through holdings such as Federal Bank, AU Small Finance Bank, Indian Bank, Piramal Finance, PB Fintech, L&T Finance and Bank of Maharashtra.
GE Vernova T&D India appears in both HSBC and Kotak midcap funds. Fortis Healthcare, Ipca Laboratories, and Vishal Mega Mart are common between HDFC and Kotak midcap funds.
| HSBC Mid Cap Fund | HDFC Mid Cap Fund | Kotak Mid Cap Fund |
|---|---|---|
| Capital Goods (19.36%) | Automobile & Ancillaries (15.64%) | Finance (18.93%) |
| Finance (14.31%) | Bank (15.63%) | Healthcare (15.06%) |
| Healthcare (12.69%) | Healthcare (14.84%) | Bank (8.00%) |
| Bank (9.75%) | IT (8.03%) | Retailing (7.84%) |
| Retailing (7.56%) | Finance (7.88%) | Chemicals (7.70%) |
| IT (7.09%) | FMCG (5.36%) | Capital Goods (7.03%) |
| Automobile & Ancillaries (5.81%) | Retailing (3.69%) | Automobile & Ancillaries (6.59%) |
| Electricals (3.78%) | Telecom (2.38%) | IT (6.15%) |
| Trading (3.54%) | Crude Oil (2.27%) | Consumer Durables (4.33%) |
| Power (2.91%) | Chemicals (2.06%) | Construction Materials (3.12%) |
Healthcare is among the top three holdings in all three portfolios, indicating a strong common conviction. Financials (finance + banks) are the largest overlapping exposure across all three funds. All these funds also maintain some allocation to IT and Retailing, providing diversification beyond financials and healthcare.
While HDFC Mid Cap Fund has a very strong Capital Goods allocation (19.36%), significantly higher than the other funds, HSBC Mid Cap Fund is heavily tilted toward Automobiles & Ancillaries (15.64%) and Banking (15.63%). Kotak Mid Cap Fund has the highest Finance exposure (18.93%) and significant allocations to Chemicals and Consumer Durables, sectors absent from HDFC Mid Cap Fund.
Overall, the stock overlap is low at the top 10 level, indicating relatively differentiated portfolio construction. Sector overlap is high, with six major sectors common across all three funds.
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