The twists and turns in mid-cap stocks haven't managed to faze this fund, which has been lodged at a four-star rating without a pause for the last seven years. The fund has earned a four- or five-star rating for the entire period since 2010. Usually parking about 75 per cent in mid-cap companies, the fund has the flexibility to invest up to 25 per cent in large caps. The fund uses this flexibility in a very selective manner. The style is growth at a reasonable price. The fund filters companies that are growing at about 15-20 per cent, with good cash-flow generation and acceptable return on equity.

HDFC Mid-Cap Opportunities Fund three-year CAGR, at 30.3 per cent, and five-year CAGR, at 25 per cent, are about 4-8 percentage points ahead of the benchmark CAGR and 3-4 percentage points more than the returns from the peers. What stands out in its yearly returns is its ability to weather any kind of bear market. In 2008, 2011 and 2013, this was a rare mid-cap fund to contain losses to levels far lower than those of its benchmark. The fund has trailed its benchmark on two occasions since inception and both were big bull years. This may be indicative of its cautious positioning on valuations, despite its growth style.

HDFC Mid-Cap Opportunities Fund  showed a slight slippage relative to the benchmark in 2015 but has pulled up its socks thereafter. The AUM has crossed Rs 14,000 crore in recent times. However, its size has so far not proved much of an impediment to performance.