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About HDFC Small Cap Fund

HDFC Smallcap Fund is an open-ended equity scheme primarily investing in the stocks of small-cap companies.

Investment Objective

The investment objective of the scheme is to provide long term capital appreciation to the investors by making investments in equity & equity-related securities of small-cap companies.

Benchmark

The Benchmark of the scheme is NIFTY Smallcap 100 Index.

Investment Details

Particulars	Minimum Amount
Minimum Application Amount	Rs.5,000 & in multiples of Rs.1 thereafter
Minimum Additional Investment	Rs.1,000 & in multiples of Rs.1 thereafter

SIP Details

Type	Minimum Amount	Minimum Installments
Daily	Rs.300 & in multiples of Rs.1 thereafter	-
Weekly	Rs.1,000 & in multiples of Rs.1 thereafter	6
Monthly (Less than Rs.1,000)	Rs.500 & in multiples of Rs.1 thereafter	12
Monthly (Equal to or greater than Rs.1,000)	Rs.500 & in multiples of Rs.1 thereafter	6
Quarterly (Less than Rs.3,000)	Rs.1,500 & in multiples of Rs.1 thereafter	4
Quarterly (Equal to or greater than Rs.3,000)	Rs.1,500 & in multiples of Rs.1 thereafter	2

Loads

Entry Load: Nil

Exit Load:

If units are redeemed or switched out within 1 year - 1%

If units are redeemed or switched out after 1 year - Nil

Suitability

HDFC Smallcap Fund is suitable for investors with a high-risk appetite and looking to invest for a period of 7 years & above.

Taxation:

As the fund predominantly invests in equity securities, HDFC Smallcap Fund has the taxability of an equity mutual fund scheme. Following taxation is applicable:

If the units are sold after 1 year, then the gains on investments are treated as Long Term Capital Gains (LTCG). LTCG of up to Rs 1 lacs in a financial year is tax-free and above that, it is taxed at the rate of 10% without the benefit of indexation.
If the units are sold within 1 year, then the gains are treated as Short Term Capital Gains (STCG) and are taxed at the rate of 15%.

HDFC Small Cap Fund’s Asset Allocation

Under normal conditions, the pattern of asset allocation is as follows:

Assets	Minimum indicative allocation (% of total assets)	Maximum indicative allocation (% of total assets)	Risk Profile
Equity & Equity related securities of small-cap companies	65	100	High
Equity & Equity related securities of other companies	0	35	High
Debt & Money market instruments	0	35	Low to Moderate
REITs & InVITs	0	10	Moderate to High
Non-convertible preference shares	0	10	Low to Moderate

Who should invest in HDFC Small Cap Fund?

Small cap funds are those equity mutual funds that invest in equity & equity-related securities of the companies beyond the top 250 companies in terms of market capitalization.

These companies have small market shares but aim to come out with innovative products which could disrupt the market through their qualitative offerings. These stocks carry the potential to become midcaps and later, large-caps by gaining market share over time.

Investments in HDFC Smallcap Fund can be made by investors who want to invest in startups or small businesses having the potential to deliver good returns over longer periods. The small size of the underlying holdings makes investments in these funds relatively risky & more volatile as compared to investments in other equity fund categories.

Investors with high risk appetite looking to invest in equity funds for a long investment horizon could consider investments in this fund. The fund can be a good investment for a diversified equity portfolio.

Eligibility - Who can invest?

The following people are eligible to invest in this scheme:

Indian Resident Adults (single holder or on a joint basis)
Hindu Undivided Family
Partnership entities
Limited Liability Partnership units
Minor through parent or a legal guardian
Sole Proprietor
Corporates, PSUs & others.
NRIs/POIs/OCIs
Banks & Financial Institutions
Religious & Charitable Trusts
Defense & paramilitary units
Foreign Portfolio Investors
Pension/Provident/Gratuity Funds
Trustee, AMCs or Sponsors
Other schemes of HDFC or other mutual funds
Alternative Investment Funds
Others

How to invest?

You can invest in HDFC Smallcap Fund through any AMFI distributor, AMC, banks, or third party platforms. If you need any help with your investments, you can reach out to our ZFunds Experts on Whatsapp - 7217746224.

More HDFC Funds:

HDFC Balance Advantage Fund
HDFC Equity Fund Growth Option
HDFC Top 100 Fund - Growth Option
HDFC Hybrid Equity Fund
HDFC Mid-Cap Opportunities Fund
HDFC Liquid Fund Growth
HDFC Short Term Debt Fund
HDFC TaxSaver Growth Plan
HDFC Low Duration Fund
HDFC Ultra Short Term Fund