HSBC Small Cap Fund: Supercharge Your Portfolio Now

Overview of HSBC Small Cap Fund

What if you can invest strategically in small cap stocks that would help you to make massive returns? This is what HSBC Small Cap Fund is doing for its investors.

It is a small-category mutual fund that helps investors to make profits by investing in small-cap stocks. The fund was started in 2014 by HSBC Mutual Fund which is a popular Asset Management Company in India. Its primary focus is to invest in small-sized companies whose market size is less than Rs. 5000 crores. Over time, the fund gained popularity among investors by providing consistent results. The secret of HSBC small cap fund growth is its investing strategy and strong fund management which you will cover in this article.

This article will give you a detailed breakdown of the HSBC small cap scheme. You will cover how it invests, top benefits, fund management and many more. So let's get started.

Investing Strategy of HSBC Small Cap Fund

The fund follows a research-driven strategy to identify the growing small companies that can become mid cap tomorrow. By investing in these companies, the fund aims to build strong wealth in mutual funds for investors. It uses a bottom-up stock selection to select profitable stocks. A team of experts analyse every small company based on performance, growth potential and business style. If any stocks seem to perform well and make great returns, the fund invests in it.

HSBC small cap scheme also allocates a small percent of its assets into mid and large-cap stocks. This helps to achieve HSBC small cap fund growth and stability. The biggest advantage of investing in the fund is diversification. HSBC small cap portfolio spreads into 18 sectors that are growth-oriented, sensitive and cyclical. By using these proven strategies, the fund delivered great results over time.

Benefits of Investing in HSBC Small Cap Fund

HSBC small cap scheme aims to provide a growth investing solution in small cap space. Here are some key benefits of the fund:

1. Better Risk Management

The biggest advantage that makes the fund stand out is its risk management ability. It uses active management where a team of experts adjusts your mutual funds portfolio according to market conditions to better manage the risk.

2. Well Diversified Portfolio

The fund spreads your portfolio into different sectors like construction, realty and finance. You can leverage the growth of different sectors and it also reduces the risk because your portfolio is not a part of one sector.

3. Flexible Investment

You can leverage the fund growth potential without investing a large sum. It helps you to start investing through an SIP plan where you have to invest a fixed amount at set times and leverage compounding to grow money.

Who Manages HSBC Small Cap Fund?

The mindset behind the consistent growth of the HSBC small cap fund is Sonal Gupta. She has been managing the fund since 2021 and brings 15 years of incredible experience. She had a strong knowledge of equity research and portfolio management. At present, she is managing an AUM (asset under management) worth Rs. 1 Lakh Crores.

She has the responsibility to execute different strategies that help the fund to achieve growth. She prioritises investing in quality stock to build long-term wealth. To invest in profitable stocks, she uses bottom-up selection to pick the right stocks. Her knowledge earned her a strong name in the market and helped to gain HSBC small cap fund regular growth over time.

Key Considerations Before Investing in HSBC Small Cap Fund

Investing in the HSBC small cap scheme is a great way to build wealth but as an investor, you should keep a few things in mind:

1. Higher Volatility

The fund targets small cap stocks for higher returns which makes it a bit more volatile. This volatile nature can cause short-term losses. So make sure you have a higher risk tolerance and manage short losses.

2. Long-Term Investment Horizon

If you are planning to invest in the fund, then focus on investing for at least 5-7 years. This is because the fund holds investments for a long duration to achieve higher returns and reduce risks like volatility.

3. Exit Load

HSBC small cap scheme has an exit load when you redeem your units from the fund. When you redeem your units before 1 year of investments, then you have to pay a 1% exit load on your units. When you redeem after 1 year, you do not have to pay any exit load.

Why is HSBC Small Cap Fund a Good Investment in 2025?

In 2025, you can boost your investment by leveraging small cap funds. Here are some reasons why you should choose HSBC small cap fund for investment:

1. High Returns Potential

The fund helps you to invest in growing small companies that can become mid cap tomorrow. When these companies value grows, their stock prices will also increase and it will help you to make higher returns.

2. Sectoral Growth

It diversifies your portfolio into different sectors like finance, industrial and IT. By investing in HSBC small cap fund regular growth plan, you can leverage the growth of these sectors and also reduce the risk because your portfolio is spread into different sectors.

3. Affordable Investment

If you prefer investing regularly rather than investing a large sum of money, then you can invest through a SIP. This systematic plan helps you to grow money by investing a fixed amount at set times.

4. Long-Term Wealth Creation

If you looking to invest so you can make more money for your future goals such as retirement or child education, then investing is a great choice. The fund helps you build long-term wealth by investing in quality stocks that have a strong performance record.

Conclusion

In short, the HSBC small cap fund is a great investment if you want to build strong wealth. Its effective investing strategy and strong fund management not only help you to make wealth but also reduce the risk. However, a few things such as volatility and market conditions can affect the fund in the short term. By investing in the long term, then you can overcome these factors and build a strong wealth.

You can also start your investing journey in the fund through a SIP plan. It is a systematic way to invest in the fund by investing a fixed amount at set times. As an investor, if you are looking to build strong wealth in future by investing a desired amount, then this plan is a perfect choice for you.