What is a small-cap fund?

A small-cap fund invests mainly in companies ranked beyond the top 250 by market capitalization.

Small-cap funds tend to be more volatile but may offer higher growth potential over the long term.

Can beginners invest?

Yes, if they understand equity market volatility and invest for long-term goals.

SIP or lump sum: which is better?

SIP helps average costs and reduce timing risk.

Does the fund only invest in small caps?

Primarily yes, but it can allocate a portion to large and mid caps for flexibility.

Is this suitable for retirement planning?

It can form part of a diversified long-term retirement portfolio but is typically not a standalone option.

What role does this fund play in a portfolio?

It aims to enhance long-term growth potential within a diversified equity portfolio.

What benchmark does HDFC Small Cap Fund track?

HDFC Small Cap Fund is benchmarked against BSE 250 SmallCap Index (TRI)

What is the minimum investment in HDFC Small Cap Fund?

Rs.100/- and any amount thereafter

How is HDFC Small Cap Fund different from a large-cap fund?

A small-cap fund invests primarily in smaller companies, whereas large-cap funds invest mainly in well-established companies with larger market capitalisation. Small-cap funds may offer higher growth potential but can also experience higher volatility.

HDFC Small Cap Fund

Equity

DIRECTREGULAR

An open ended equity scheme predominantly investing in small cap stocks

Today’s Beginners Could Be Tomorrow’s Leaders

What is HDFC Small Cap Fund?

HDFC Small Cap Fund is an open-ended equity mutual fund scheme that predominantly invests in small-cap companies. Small-cap companies typically represent emerging businesses with strong growth potential.

By investing in a diversified portfolio of small-cap stocks, the fund aims to identify companies with scalable business models and participate in their long-term growth journey.

Investment Objective is to provide long-term capital appreciation/ income by investing predominantly in small-cap companies. There is no assurance that the investment objective of the scheme will be achieved.

Investment Strategy of HDFC Small Cap Fund

HDFC Small Cap Fund focuses on identifying high-quality small-cap companies with long-term growth potential trading at reasonable valuations.

The portfolio construction emphasizes:

Bottom-up stock selection based on company fundamentals
Focus on quality companies, with sound financial strength and reasonable return on equity
Diversification across sectors and industries
Invest at sensible valuations in companies trading at reasonable multiples

Why invest in HDFC Small Cap Fund?

Untapped Universe: With more than 1000 companies beyond the top 250 by market cap, the small-cap space offers a wider scope for alpha generation.
Under-Researched = Opportunity: Many small-cap stocks are less tracked by analysts, allowing fund managers to identify mispriced winners early.
Potential Re-rating: As small companies grow, they attract institutional interest and better coverage, often leading to higher valuations.
Proven Strategy: The fund has a 17+ year track record of spotting scalable, quality small-cap businesses with sound management.
Smart Diversification: Adds potential for high-growth to your portfolio, complementing large and mid-cap exposure of investors

Who can consider HDFC Small Cap Fund?

This fund may suit investors who:

Seek long-term capital appreciation (5+ years)
Are comfortable with short-term volatility
Want exposure to emerging growth businesses
Aim to diversify across market-cap segments

How to start investing in HDFC Small Cap Fund?

Investors can start investing in HDFC Small Cap Fund through the following steps:

Complete your KYC
Keep PAN, Aadhaar and bank details ready.
Visit HDFC Mutual Fund Website / App
Go to the fund page and click Invest Now.
Choose Investment Mode
SIP – invest a fixed amount monthly
Lump Sum – invest one time
Select Plan & Option
Direct or Regular Plan
Growth or IDCW option
Enter Amount & Payment Details
Set SIP date or make payment online.
Confirm & Start Investing
Your investment will be processed and units will be allotted.

Returns

17.54%

Inception Date

01/01/2013

Riskometer

Very High

Min SIP

₹ 100

Ideal for

Wealth Creation

3 Years and above

Entry Load

An entry load is a fee charged to investors when they purchase units of a Mutual Fund scheme. This fee was used to cover distribution and marketing expenses incurred by the Asset Management Company (AMC). Currently, Mutual Funds in India do not levy entry loads.

TER

The Total Expense Ration (TER) represents the costs for running and managing a Mutual Fund scheme. It is calculated as a percentage of the scheme’s average Net Asset Value (NAV). The daily NAV of a Mutual Fund is disclosed after deducting these expenses.

Disclaimer

Including Additional Expenses and Goods and Service Tax on Management Fees, if any. Click here to view the Total Expense Ratio

0.76

Lock in

A lock-in period is the fixed duration during which investors cannot sell or redeem their investments/Mutual Fund units. For example, Equity Linked Savings Schemes (ELSS) Funds have a 3-year lock-in.

NAV NA

Net Asset Value (NAV) per unit is the total market value of securities of a scheme minus liabilities divided by the total number of outstanding units on a given date.

AUM (31/03/2026)

Assets Under Management (AUM) is the total market value of all assets that a Mutual Fund manages on behalf of its investors.

₹33,724.28 Cr.

Benchmark

A benchmark is a standard market index used to compare a Fund’s performance. It helps investors know whether the Fund is performing better, worse, or similar to the market.

BSE 250 SmallCap Ind...

BSE 250 SmallCap Index (Total Returns Index)

Nav Performance

No data available

Scheme Returns (%)
Benchmark Returns (%)#
Additional Benchmark Returns (%)##
Value of Investment of Rs 10,000
Scheme Returns (Rs.)
Benchmark (Rs.)#
Additional Benchmark (Rs.)##

^Past performance may or may not be sustained in future and is not a guarantee of any future returns. # BSE 250 SmallCap Index TRI...Read More

Fund Managers

Top 10 Holdings

As on 31 Mar 2026

Downloads

HDFC Small Cap Fund

SID - HDFC Small Cap Fund dated November 21, 2025

KIM - HDFC Small Cap Fund dated November 21, 2025

Note - Why Invest in HDFC Small Cap Fund - Nov 2025

HDFC Small Cap Fund - Presentation (October 2025)

Fund Facts - HDFC Small Cap Fund_March 26.pdf

Exit Load

In respect of each purchase / switch-in of Units, an Exit Load of 1.00% is payable if Units are redeemed / switched out within 1 year from the date of allotment.
No Exit Load is payable if Units are redeemed / switched out after 1 year from the date of allotment.