HSBC Small Cap mutual fund has a highly diversified portfolio; what should investors do

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
12 MAY 2014
CATEGORY
EQUITY

TYPE
SMALL CAP
AUM*
Rs.17,306 crore
BENCHMARK
NIFTY SMALLCAP 250
TOTAL RETURN INDEX

WHAT IT COSTS
NAV**
GROWTH OPTION
Rs.91.39
IDCW
Rs.49.49
MINIMUM INVESTMENT
Rs.5,000

MINIMUM SIP AMOUNT
Rs.500

EXPENSE RATIO# (%)
1.67
EXIT LOAD
For units in excess of 10% of the investment, 1% will be charged for redemption within 365 days

*AS ON 30 SEP 2024
**AS ON 15 OCT 2024
#AS ON 30 SEP 2024

FUND MANAGER
CHEENU GUPTA/VENUGOPAL MANGHAT
11 MONTHS / 4 YEARS, 9 MONTHS

Recent portfolio changes
New entrants
KFin Technologies, Nippon Life India Asset Management (Aug).
GE T&D India, Oberoi Realty, PTC Industries, Suzlon Energy (Sep).
Complete exits
Gujarat Fluorochemicals (Aug).
Birlasoft, Indian Bank, The Phoenix Mills, VRL Logistics (Sep).

Should You Buy
Earlier known as L&T Emerging Businesses, this small-cap fund now operates under the HSBC banner since the takeover. The fund retains its positioning due to continuity in leadership. It 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 started outperforming since 2021 and has maintained a decent show. The fund’s risk-return remains among the top quartile in its category.