Predominantly investing in the equity and equity-related securities of small-cap companies, HDFC Small Cap Fund is a moderately high-risk scheme. The fund is suitable for investors who are seeking to generate long-term wealth appreciation. Investors investing in HDFC Small Cap Scheme should stay invested for seven years or more for getting optimal returns on the principal amount.
|Fund Type||Open Ended|
|Benchmark||NIFTY Smallcap 100 TRI|
|Asset Size(Cr)||6013.22 (As on Dec 31, 2018)|
|Fund Manager||Chirag Setalvad , Rakesh Vyas|
|Notes||Morgan Stanley Mutual Fund have been acquired by HDFC Mutual Fund, Accordingly, Morgan Stanley A.C.E Fund has been renamed as HDFC Small and Mid Cap Fund, w.e.f. June 27, 2014.|
|Min SIP Investment||500|
|Min Addl Investment||1000|
|Exit Load||1 % For 365 Days|
|Period||Returns(%)||Benchmark Returns (%)|
- Returns for less than one year are Absolute, and those for more than one year are Annualised (CAGR).
- All the returns are calculated as against the performance of Nifty Free Float Midcap 100.
- The benchmark for the funds falling in small- and mid-cap category is Nifty Free Float Midcap 100.
|Fund Name||Ratings||1 Yr Rtn.||3 Yr Rtn.||5 Yr Rtn.|
|L&T Emerging Businesses (G)||-18.23%||18.84%||%|
|SBI Small Cap Fund (G)||-23.21%||16.15%||28.67%|
|Reliance Small Cap Fund (G)||-20.9%||15.89%||25.98%|
|Franklin India Smaller Companies Fund (G)||-18.96%||12.1%||22.12%|
|Aditya Birla Sun Life Small Cap Fund (G)||-26.27%||11.93%||19.47%|
|Period||Returns (%)||NIFTY MIDCAP 50 (%)|
|No. of Investment||Amount Invested||Investment Value As on date||Units Purchased||CAGR|
| No. of Investment
|| Amount Invested
|| Investment Value As on date
|| Units Purchased || CAGR
The graph depicts the wealth generated or the historical returns offered by the SIP investments made in the selected time horizon.
|Total Amount Invested||Investment Value As on Date||Total Units Purchased||Abs. Return|
| Total Amount Invested
|| Investment Value As on Date
|| Total Units Purchased || Abs. Return
The graph depicts the wealth generated or the historical returns offered by the lump sum investments made in the selected time horizon.
|Sector||Value(In Cr)||Allocation (%)|
|Holdings||Instrument||Industry||Rating||Market Value||% to NAV|
HDFC Small-cap Fund is a highly aggressive scheme in the category of the small-cap mutual fund, but in the recent years, it has turned out to be one of the best mutual fund schemes in the category as the trailing returns since last 3 years are the best in the category. It has the potential to provide an exponential returns in future if the disciplined investment is made for a long-term horizon. The fund aims to provide long-term wealth creation through a highly aggressive portfolio of small-cap equity stocks which have the potential to become leaders of tomorrow. You can invest in the fund through SIP mode and use the SIP calculator to calculate the amount you should invest to reach the willing goal.
The mutual fund was incorporated in April 2008 by HDFC Mutual Fund which was a bear market and after that the fund enjoyed beneficial year ahead and generated more than 100% returns in the calendar year of 2009. HDFC Small Cap Fund G provided frequent fluctuations in the following years while in the bearish trend of 2011, the drawdown was limited above the benchmark. It has generally performed well in the negative market and provided less losses than other schemes of the category. Decent returns have been generated in the positive market compared to the category’s average, however, in the last 3 years, it has turned out to be as one of the best schemes in the category and provided the best trailing and rolling returns.
The fund belongs to the small-cap category, hence high risk is apparent as these companies are at their emerging stage and are financially unstable. But the comparison is made within the category, we will see that the fund possess lesser risk than most of the other schemes of the category as the standard deviation is lower than the benchmark and category’s average. Though the risk is high, the returns in the recent years are completely worth the risk as the risk to reward ratio is much better than the peers and index. The reason lies in the stock selection strategy as the stocks chosen by the fund manager in the mid and small-cap section provide high returns but are less volatile than others. Nearly 95% of the corpus is invested in mid and small-cap companies out of which 60-65% is generally invested in small-cap stocks.
HDFC Small-Cap Fund possesses high risk but can be worthy for a long-term investment. The investor needs to be patient and ready to tolerate heavy fluctuations in the short term. Although the fund has the ability to provide the highest of returns, it can also provide losses of up to 18-20% in the worst conditions which can even last for 3-4 years. The adequate tenure for investment should be 7 years or more for beneficial returns and the investor should be disciplined. Impulsive decisions regarding investment in HDFC Small-cap Fund can be dangerous and harmful. Investors must check the suitability and goals before investing.
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