Investment Objective
HDFC Small Cap Fund seeks to provide long-term capital appreciation /income to its investors by investing primarily in small cap companies.
Investment Strategies
- HDFC Small Cap Fund invests 65% to 100% of total assets in small caps and up to 35% in large and midcaps. Further, the fund may invest up to 35% of its total assets in foreign securities.
- The fund manager invests in companies trading at reasonable valuations, which is measured through metrics like P/B, P/E, EV/EBITDA, etc.
- The fund focuses on quality companies with sound financial strength and generates a reasonable return on equity.
- The fund seeks to reduce risk by investing in businesses with sustainable and understandable business models and good management.
- The scheme aims to reduce risk in small caps by wider diversification of the portfolio.
Who Should Invest
- Investors who want to predominantly invest in small cap companies.
- Investors who have a higher risk appetite and are aware that their principal amount would be at a very high risk.
Frequently Asked Questions
What is the risk level of HDFC Small Cap Fund?
As per the fund factsheet published by the fund house, HDFC Small Cap Fund is considered to carry ‘Very High Risk’ for its investors.
Is there any lock-in period in the HDFC Small Cap Fund?
HDFC Small Cap Fund has no lock-in period for its investors. The investors of this fund are free to make redemption requests on any date as per their requirements.
What type of mutual fund is the HDFC Small Cap Fund?
HDFC Small Cap Fund is an open-ended equity mutual fund scheme belonging to the small cap fund category.
Is the HDFC Small Cap Fund open-ended or close-ended?
HDFC Small Cap Fund is an open-ended equity mutual fund scheme.
What is the benchmark index for this HDFC Small Cap Fund?
BSE 250 SmallCap Index (TRI) is the benchmark index of HDFC Small Cap Fund.