HSBC Small Cap Fund: Fund review

ET Wealth collaborates with Value Research to analyse top mutual funds. We examine the key fundamentals of the fund, its portfolio and performance to help you make an informed investment decision.

BASIC FACTS
DATE OF LAUNCH
5 DECEMBER 2014
CATEGORY
EQUITY
TYPE
SMALL CAP
AUM*
Rs.8,672 Crore
BENCHMARK
NIFTY SMALLCAP 250
TOTAL RETURN INDEX

WHAT IT COSTS
NAV**
GROWTH OPTION
Rs.47.46
NAV**
IDCW
Rs.30.93
MINIMUM INVESTMENT
Rs.5,000
MINIMUM SIP AMOUNT
Rs.500
EXPENSE RATIO*** (%)
1.85
EXIT LOAD
For units in excess of 10% of the investment,1% will be charged for redemption within 365 days

*AS ON 31 JANUARY 2023
**AS ON 14 FEBRUARY 2023
***AS ON 31 DECEMBER 2022

FUND MANAGERS
VENUGOPAL MANGHAT /VIHANG NAIK
3 YEARS EACH

Recent portfolio changes
New Entrants: Gujarat Fluorochemicals.
Complete Exits: ACC, Arvind, Avanti Feeds, Camlin Fine Sciences, Canara Bank, Gateway Distriparks, Infosys, LatentView Analytics, Laurus Labs, Mahindra Logistics, Neogen Chemicals, Oberoi Realty, RateGain Travel Technologies, TCNS Clothing, TeamLease Services, Vinati Organics, Narayana Hrudayalaya.
Increasing allocation: Karur Vysya Bank.

Should you buy?
Earlier known as L&T Emerging Businesses, this small cap fund now operates under the HSBC banner since the takeover. However, the same fund managers continue to helm the fund, so it has not seen any style drift. The fund takes sizeable presence in mid caps apart from its small cap tilt, higher than many of its peers. The fund targets small players in evolving industries, those in a large industry catering to niche segments or looking to gain market share of unorganised players. The portfolio is now heavily diversified with thin positions even in top bets. After suffering a blip during 2018-2020, it roared back in 2021 and has continued its run of form for the past one year. Stability at the top should allow the fund to deliver consistently going forward.