The HDFC Small Cap Fund is an actively managed equity mutual fund that carries a small-cap bias. The fund seeks to provide its investors high long-term capital appreciation through investments in equity and equity-related instruments of small-cap companies that have the potential to become tomorrow's market leaders. This fund operates in the relatively volatile, small-cap market segment of the market and, therefore, investors in this fund should expect high fluctuations in returns over the short term and have a high capacity for risk.
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 realized..
The HDFC Small Cap Fund is suitable for investors that have a high-risk appetite and are seeking long-term capital appreciation through investments in equity and equity related instruments. The ideal investment horizon for this fund is at least 3 years.
The fund originally an all cap fund (Morgan Stanley ACE) had been narrowed down to Small and Midcap and now to HDFC Small Cap. The fund has been managed by one of the best managers in the Mid and Small Cap segment - Chirag Satalvad whose stock selection ability has resulted in placing it in the top most funds since his joining in spite of a hefty AUM with more than 3000 crores.