Investment Objective and Approach

The scheme seeks to provide long-term capital appreciation/income by investing predominantly in small-cap companies. The scheme follows a predominantly small cap strategy with a minimum exposure of 65% to small cap stocks. The scheme may also seek participation in other equity and equity related securities to achieve optimal portfolio construction.

The aim of equity strategy will be to predominantly build a portfolio of small-cap companies which have: a) reasonable growth prospects b) sound financial strength c) sustainable business models d) acceptable valuation that offers potential for capital appreciation.

The fund focuses on identifying quality small-cap companies across various sectors and holds them for extended periods to generate strong compounding returns. 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.

Key Investment Details (as of August 2025):

- AUM: ₹36,353.10 Crores as of 25th August 2025

- Current NAV: ₹161.83 as of 25th August 2025

- Expense Ratio: 0.71% as of 25th August 2025

- Five-year annualised return: 35.07% as of 24th July 2025

- Since inception return: 906.22%

Fund Managers

The HDFC Small Cap Fund is managed by two experienced fund managers:

Mr. Chirag Setalvad - Current Fund Manager of HDFC Small Cap Fund Direct Growth

- Has a B.Sc degree in Business Administration from the University of North Carolina. He has extensive experience in investment banking and equity research.

- He joined HDFC Asset Management Company Ltd. as a Fund Manager in 2000 and came back to HDFC Mutual Fund in 2007 as the Senior Fund Manager of Equities.

- Has 16 years of experience of which 13 years in Fund Management and Equity Research and 3 years in investment banking. From March 2007 till date he is with HDFC AMC.

- Currently manages Rs. 57,928 Crore in 15 schemes like Small Cap Fund, Retirement Savings Fund, Multi Asset Fund, Mid-Cap Opportunities Fund, Long Term Advantage Fund, Hybrid Equity Fund, Children's Gift Fund.

Mr. Dhruv Muchhal - Equity Analyst and Fund Manager for Overseas Investments

- Has done B.Com, CA and CFA

- Prior to joining HDFC MF, he has worked with Motilal Oswal Financial Services Ltd., Goldman Sachs, CRISIL Global Research & Analytics and Deloitte Haskins & Sells

Both fund managers have extensive experience of 15 years while managing equity & related investments and are focused on picking quality companies and holds them for a long duration to generate good compounding returns in their funds.

About the Fund House (AMC)

HDFC Asset Management Company Limited is one of India's leading asset management companies. HDFC Mutual Fund is the leading mutual fund investment company in India and offers a wide range of mutual funds for investors.

Key highlights of HDFC AMC:

- Received approval to act as an AMC from SEBI on 30 June 2000 under the registration number MF/044/00/6

- Also offers portfolio management/non-binding investment advisory services since 18 September 2016 under the registration code PM/INP000000506 from SEBI

- The company services more than 75,000 empanelled distribution partners through 210 branches spread across more than 200 cities in India

- Assets under management (AuM) was 25.86% with Active equity AuM at 32.27%

The AMC has established itself as a trusted name in the mutual fund industry with experienced fund management teams and a strong track record across various fund categories.

Should I Invest in HDFC Small Cap Fund?

HDFC Small Cap Fund can be suitable for investors with specific risk appetite and investment horizon:

Who Should Consider:

- Investors with high risk tolerance seeking long-term capital appreciation

- Those with investment horizon of 7+ years

- Investors looking for exposure to high-growth small-cap companies

- Those comfortable with high volatility in exchange for potentially higher returns

Investment Considerations:

- Warning: Do not invest in this, or any other small-cap fund, if you need to redeem your investment in less than seven years

- 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

Investment Options:

- SIP as well as Lump Sum investments are permitted with the minimum application amount being ₹100

- The SIP and Lumpsum are available in direct and regular plan with both Growth and IDCW option

FAQs

What is today's NAV of HDFC Small Cap Fund?

The NAV changes daily based on market conditions. You can check the latest NAV on the HDFC Mutual Fund website or through Allvest platform for real-time updates.

What is the AUM of HDFC Small Cap Fund?

The AUM of HDFC Small Cap Fund is ₹36,353.10 Crores as of 25th August 2025.

What is the expense ratio of HDFC Small Cap Fund?

The expense ratio is 0.71% as of 25th August 2025.

What are the returns of HDFC Small Cap Fund since inception?

The scheme has delivered 906.22% returns since inception. However, past performance doesn't guarantee future returns.

What is the minimum SIP amount to invest in HDFC Small Cap Fund?

The minimum SIP amount to invest in this scheme is ₹100.

How do I invest in HDFC Small Cap Fund?

You can invest through Allvest platform, directly through HDFC Mutual Fund website, or through registered distributors and banks that offer mutual fund services.

How to start a SIP in HDFC Small Cap Fund?

You can start a SIP through Allvest by completing the KYC process, selecting the fund, choosing SIP amount and frequency, and setting up auto-debit instructions.

How do I automate an SIP in HDFC Small Cap Fund?

Set up an auto-debit mandate with your bank through Allvest platform or the AMC's website to automate monthly SIP investments without manual intervention.

How can I withdraw/redeem my investment in HDFC Small Cap Fund?

An Exit Load of 1.00% is payable if units are redeemed within 1 year from the date of allotment. No Exit Load is payable if units are redeemed after 1 year. You can redeem through Allvest or the AMC's official channels.