How HDFC Small Cap Fund Outperforms in Market Volatility?

Introduction

Are you looking to make higher returns from your investment? If yes, then you cannot afford to miss HDFC Small Cap Fund which stands out as a strong wealth creator for investors.

It is one of the popular scheme among investors that focus on investing in small companies. The fund is known as a wealth creator because it focuses on making higher returns for investors.

Its performance is proof of why the fund is a first choice for investors who want high returns and long-term growth. From the day of its starting, you will see consistent growth in its performance. It is interesting to know how the fund is making higher returns even small cap funds are considered a bit risky compared to large and mid cap funds.

This article will help you to learn everything about this high-growth fund. How it make higher returns, who manages the fund and why it a top choice for investors? Whether you are a beginner or experienced, this guide will clear your all doubts. Let's get started.

What is HDFC Small Cap Fund?

The HDFC small cap fund is known as a value investment for investors looking for great returns. The fund started in the year 2008 by HDFC Mutual Fund which is a top asset management company in India. In February 2025, the current HDFC small cap fund NAV is Rs. 121.96

The fund aims to provide higher returns to investors in the long term by investing in small-sized companies. These companies market size is lower than Rs. 5000 crores. Compare to large and mid cap companies, small cap companies have a higher potential of growth.

However, the fund has to face higher volatility because it invests in small companies. This is why the fund targets investor who are looking to invest for at least 5-7 years so they can make higher returns and boost their HDFC small cap fund portfolio.

How HDFC Small Cap Fund Make Higher Returns?

If you look at the past performance of the small cap fund, it consistently generated higher returns for investors. The reason behind this growth is fund value investment strategy. It invests in quality small company stocks that help to make higher returns.

The fund has a team of expert fund managers who focus on selecting the right stocks. They use deep research and evaluate the market before investing in stocks. This strategy helps to only invest in quality stocks that have high potential of growth.

These fund managers also diversify investors portfolio in different sectors. It helps to manage risk and strengthen investors HDFC small cap fund portfolio.

This smart strategy of investing is the reason why fund provided more than 20% returns in past few years. If you are looking to invest your money in long-term and generate higher returns, then investing in the fund can be a great choice for you.

Who Manage HDFC Small Cap Fund?

The HDFC small cap fund managed by Mr Chirag Setalvad. He brings 24 years of valuable experience in fund management and equity research. As of February 2025, he holds the position of senior fund manager at HDFC Mutual Fund. Along with small cap fund, he also manage equity and mid cap funds.

He is known as an important name in the mutual funds market because of his investment strategy and expertise in the market. He focuses on investing in quality stocks that have a high potential of growth. He pick profitable stocks based on strong market research and company performance.

His proven strategy helped the fund to generate long-term returns and increased HDFC small cap fund NAV over time. This is the reason why it holds a respected name in the market. Whether its making higher returns or maintaining fund performance in bad market conditions, his strategy never disappoint investors.

How to Start Investing in HDFC Small Cap Fund as a Beginner?

It is a very simple process to invest in the fund and you can easily do it online. Here is a step-by-step process to begin investing in the fund:

Step 1: First, you have to visit the website of HDFC Mutual Fund using your desktop or phone.

Step 2: It will ask you to create your investment account to begin investment in HDFC schemes.

Step 3: Now you have to complete your KYC (Know Your Customer). You can simply do it by uploading details like PAN, Adhaar and Driving Licence.

Step 4: After completing the KYC, you have to choose the investment scheme. Simply choose small cap fund for the investment.

Step 5: Next, you have to select an investment plan from SIP (Systematic Investment Plan) or Lumpsum.

Step 6: Last step is to complete the payment via UPI or Netbanking and your investment is ready to make returns for you.

You can use this simple method to invest in the small cap fund in a hassle-free way.

Why to Invest in HDFC Small Cap Fund?

Here are a few reasons that show why you should invest in HDFC small size fund as your investment choice:

High Growth Potential

The fund provides higher growth to investors because it focuses on investing in emerging small cap companies that are consistently growing. By investing in the fund, you can make higher returns in the long term.

Systematic Investment Option

If you are looking to invest a fixed amount rather than a large sum, this small-cap fund can be a great choice. You can invest in the fund through an SIP and grow your money over time.

Proven Track Record

Over the past few years, the fund has generated consistent returns for investors. Not only the fund generated great returns but also helped investors manage losses. Its great performance makes it stand out as a great investment choice in mutual funds.

Zero Exit Load

The biggest advantage of investing in the fund is you do not have to pay any exit load when you redeem your investment after one year of investment. You have to pay 1% exit load when you redeem your units within a year.

Conclusion

In short, the HDFC small cap fund gives investors a great opportunity to make higher returns in small cap funds. Its approach to investing makes it a valuable choice for investors who want growth for their investments. However, the fund has to face higher volatility but if you have a long-term investment plan, then you can manage these risks and make higher returns for your future.

One of the best ways to invest in a fund with minimal risk is by starting an SIP. It is a systematic investment plan where you invest a fixed amount at set times. This is how you can manage volatility in a better way and grow your money over time.