December 26, 2025
RA Jainee
HDFC Small Cap Fund
| Fund at a Glance | |
| NAV Growth | Rs 158.65 |
| NAV Bonus | — |
| NAV IDCW | Rs 68.52 |
| Min. Investment (Rs.) | 100 |
| Min. SIP Investment (Rs.) | 100 |
| Min. No of Cheques | 6 |
| Benchmark | BSE 250 SmallCap TRI |
| AUM Rs. | 38,020 Cr |
| (As on 30-Nov-2025) | |
| Expense | 0.67% |
| 1 Year Return (%) | 1.18 |
| 3 Year Return (%) | 23.87 |
| 5 Year Return (%) | 26.34 |
| 10 Year Return (%) | 18.94 |
| Return Since Launch | 19.37% |
⚖️ Sahifund Review – HDFC Small Cap Fund
PLUS: Stability | Track Record | Cost Efficiency
HDFC Small Cap Fund has delivered strong long-term wealth creation, with 3-year and 5-year CAGR of ~24–26%, comfortably outperforming its benchmark and category over full market cycles. The fund follows a disciplined, research-driven approach, reflected in its low portfolio turnover of under 10%, which reduces churn risk. A well-diversified portfolio of 80+ stocks helps manage stock-specific risk in the volatile small-cap space. The reasonable expense ratio of 0.67% supports long-term compounding, while the fund manager’s experience adds confidence.
MINUS: Large AUM | Small-Cap Volatility | Short-Term Underperformance
With a large AUM of Rs. 38,000+ crore, flexibility in small caps can be constrained. Being a pure small-cap fund, interim drawdowns can be sharp, as seen in muted 1-year returns. Performance may lag momentum-driven small-cap rallies, testing investor patience during certain phases.
Sahifund View (Decisive Line):
Best suited for patient investors with a 7+ year SIP horizon who can tolerate volatility to benefit from high-quality small-cap compounding over time.
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| NFO Guidance |
What lies ahead? Below we decode returns consistency, portfolio concentration, peer positioning and risk profile in detail.
Suitable For Which Investors?
When you invest for seven years or more, you can expect gains that comfortably beat the inflation rate as well as returns from fixed income options.
This is a fund that invests in smaller companies. Compared to those that invest in larger companies, such funds tend to fall more when stock prices fall. So while you can expect higher returns in the long term, there will be more severe ups and downs along the way.
Like for all equity funds, you must invest only through the SIP route.
Fund’s Investment Strategy:
The scheme seeks to provide long-term capital appreciation /income by investing predominantly in Small-Cap companies.
Fund Manager:
1) Chirag Setalvad
Education: Mr. Setalvad is a B. Sc and MBA from University of North Carolina.
Experience: Prior to joining HDFC AMC he has worked with New Vernon Advisory Services Ltd., HDFC AMC and ING Barings N.V.
Investment Details
| Min. Investment (Rs) | 100 |
| Min. Addl Investment (Rs) | 100 |
| Min. SIP Investment (Rs) | 100 |
| Min. Withdrawal (Rs) | 100 |
| Min. No of Cheques | 6 |
| Min. Balance (Rs) | 1 |
| Lock-in Period | NA |
| Exit Load | 1% for redemption within 365 days |
Basic Details of HDFC Small Cap Fund
| Fund House | HDFC Mutual Fund |
| Launch Date | 01-Jan-13 |
| Return Since Launch | 19.37% |
| Benchmark | BSE 250 SmallCap TRI |
| Riskometer | Very High |
| Type | Open-ended |
| Assets | Rs 38,020 Cr |
| (As on 30-Nov-2025) | |
| Expense | 0.67% |
| (As on 30-Nov-2025) | |
| Risk Grade | Above Average |
| Return Grade | Average |
| Turnover | 9.49% |
Trailing Returns (%) of HDFC Small Cap Fund
| Fund name | YTD | 1D | 1M | 3M | 6M | 1Y | 3Y | 5Y | 7Y | 10Y |
| HDFC Small Cap Dir | 0.73 | -0.34 | -0.72 | -3.11 | 2.23 | 1.18 | 23.87 | 26.34 | 19.76 | 18.94 |
| BSE 250 SmallCap TRI | -5.13 | 0.01 | 0.00 | -2.71 | -2.36 | -4.72 | 22.69 | 23.05 | 18.49 | 14.94 |
| Equity: Small Cap | -4.30 | -0.12 | -0.24 | -2.16 | -1.06 | -4.19 | 22.91 | 24.72 | 21.27 | 17.40 |
| Rank within category | 5 | 43 | 39 | 42 | 7 | 5 | 9 | 6 | 12 | 3 |
| Number of funds in category | 43 | 52 | 49 | 49 | 46 | 43 | 31 | 24 | 16 | 12 |
Peer Comparison of HDFC Small Cap Fund
| Rating | 1 Year Returns | 3 Year Returns | 5 Year Returns | Expense Ratio (%) | Net Assets (Rs Cr) | Return Since Launch (%) | Exit Load (Days) | Fund Age | Turnover (%) | |
| HDFC Small Cap Dir | 4 star | 1.18 | 23.87 | 26.34 | 0.67 | 38,020 | 19.37 | 1.00 (365) | 12Y 11M | 9.49 |
| Nippon India Small Cap Dir | 4 star | -4.09 | 24.22 | 28.74 | 0.63 | 68,572 | 24.36 | 1.00 (365) | 12Y 11M | 12.00 |
| Quant Small Cap Dir | 4 star | -1.76 | 24.77 | 31.27 | 0.75 | 30,170 | 17.45 | 1.00 (365) | 12Y 11M | 151.00 |
| Bandhan Small Cap Dir | 5 star | 0.63 | 33.30 | 27.86 | 0.42 | 18,174 | 32.24 | 1.00 (365) | 5Y 10M | 25.00 |
| Franklin India Small Cap Dir | 4 star | -7.15 | 22.70 | 24.43 | 0.92 | 13,529 | 20.20 | 1.00 (365) | 12Y 11M | 25.46 |
Portfolio Analysis of HDFC Small Cap Fund
| No. of Stocks | 83 |
| Top 10 Stocks | 30.30% |
| Top 5 Stocks | 19.45% |
| Top 3 Sectors | 54.14% |
| Portfolio P/B Ratio | 3.05 |
| Portfolio P/E Ratio | 23.48 |
Portfolio Breakup
| Fund | Category | |
| Average Mkt Cap (Rs Cr) | 15,959 | 19,653 |
| Giant (%) | 0.77 | 6.73 |
| Large (%) | 8.15 | 6.19 |
| Mid (%) | 48.19 | 64.67 |
| Small (%) | 42.79 | 29.82 |
| Tiny (%) | 0.09 | 0.33 |
Disclaimer: Mutual fund investments are subject to market risks. Read all scheme related documents carefully
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