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.