HDFC Small Cap Fund Growth Review: NAV, Returns, Portfolio, and Performance Analysis

HDFC Small Cap Fund  Growth is one of the most well-known small-cap mutual fund schemes in India. It is designed for investors who are looking forward to building wealth over the long term by tapping into the growth potential of smaller companies. It is managed by experienced fund managers like Chirag Setalvad and Dhruv Mucchal.  In this blog, we’ll break down its features, performance, portfolio composition, strategy, and suitability, so you can decide if it fits your investment goals.

What Is HDFC Small Cap Fund Growth?

HDFC Small Cap Fund Growth is an equity mutual fund scheme that focuses on investing predominantly in small-cap companies, aiming to achieve long-term capital appreciation. As of August 2025, the Direct Growth plan’s Net Asset Value(NAV) is ₹158.57, and the fund size is ₹35,780.59 crore. The scheme has been available since 10 December 1999. Chirag Stelvad is the Fund Manager of HDFC Cap Fund Direct Growth at the current time. The Fund has 93.38% investment in domestic equities, with 3.26% in Large Cap Stocks. The remaining portion is invested in small-cap stocks. The remaining portion is invested in small-cap and mid-cap stocks. 

Latest Features and Key Details

Parameter	Details
Category	Equity, Small Cap
Investment Strategy	Minimum 65% exposure to small-cap stocks
Fund Manager	Chirag Setalvad
Expense Ratio	0.71%
Risk Profile	Very High — returns can be high, but volatility is significant, typical of small-cap investments
Recent Returns	3-year absolute return ~98.41%; 5-year absolute return ~315.68% (Direct Growth plan)
Minimum SIP Investment	₹100

Performance Analysis Of HDFC Small Cap Fund Growth

Here is your HDFC Small Cap Fund-growth performance analysis in a tabular format: 

Parameter	Data / Details
1 Month Return	-2.11%
3 Months Return	10.01%
6 Months Return	13.36%
1 Year Return	2.45%
3 Years CAGR	25.10% p.a.
5 Years CAGR	32.37% p.a.
10 Years CAGR	18.94% p.a.
Since Inception CAGR	19.92% p.a.
Sharpe Ratio	1.23
Beta	0.79
Standard Deviation	15.42
Small Cap Allocation	80.36%
Major Sector Allocation	Services (21%), Healthcare (12.6%), Capital Goods (11.6%), Financial (11.3%)
AUM	₹36,353 Cr
Expense Ratio	0.71%
Fund Managers	Chirag Setalvad & Dhruv Muchhal
Risk Level	Very High
Category Average (1 Year)	-1.74%
Outperformance (1 Year)	Yes – 2.45% vs. -1.74%
Suitability	Long-term investors with high risk tolerance

Return On Investment for HDFC Small Cap Fund Growth

Period Invested for	₹10000 Invested in	Latest Value	Absolute Returns	Annualised Returns	Category Avg	Rank within Category
1 Week	31-Jul-25	9865	-1.35%	–	-2.19%	2/33
1 Month	07-Jul-25	9832.1	-1.68%	–	-3.55%	1/32
3 Month	07-May-25	11386.1	13.86%	–	8.87%	1/32
6 Month	07-Feb-25	10860.3	8.60%	–	4.46%	2/32
YTD	01-Jan-25	9939.9	-0.60%	–	-4.77%	4/31
1 Year	07-Aug-24	10289.6	2.90%	2.90%	-0.90%	8/30
2 Year	07-Aug-23	14094.8	40.95%	18.69%	19.51%	13/26
3 Year	05-Aug-22	19307.6	93.08%	24.45%	21.31%	6/25
5 Year	7-Aug-20	39665.1	296.65%	31.71%	30.07%	6/23
10 Year	07-Aug-15	50809.9	408.10%	17.64%	15.99%	5/15
Since Inception	03-Apr-08	139407	1294.07%	16.39%	17.36%	18/32

SIP Return 

Period Invested for	₹1000 SIP Started on	Investments	Latest Value	Absolute Returns	Annualised Returns
1 Year	07-Aug-24	12000	12580.58	4.84 %	9.08 %
2 Year	07-Aug-23	24000	27088.68	12.87 %	12.1 %
3 Year	05-Aug-22	36000	47650.55	32.36 %	19.06 %
5 Year	07-Aug-20	60000	106616.56	77.69 %	23.18 %
10 Year	07-Aug-15	120000	349449	191.21 %	20.26 %

Portfolio Of HDFC Small Cap Fund Growth

Category	Percentage / Value
Equity Holding	93.38%
F&O Holdings	0.00%
Foreign Equity Holdings	0.00%
Total	93.38%
No. of Stocks	84 (Category Avg – 86.37)
Large Cap Investments	3.26%
Mid Cap Investments	4.72%
Small Cap Investments	64.12%
Other	21.28%

Equity

Stock Invested in	Sector	Value(Mn)	% of Total Holdings	1M Change	1Y Highest Holding	1Y Lowest Holding	Quantity	1M Change in Qty
Firstsource Solutions Ltd.	It enabled services	20400.9	5.70%	-0.24%	6.75% (Feb 2025)	5.01% (Jul 2024)	5.45 Cr	0
Aster DM Healthcare Ltd.	Hospital	14540.3	4.06%	0.05%	4.06% (Jun 2025)	2.3% (Jul 2024)	2.44 Cr	0
eClerx Services Ltd.	Business process outsourcing (BPO)/ knowledge process outsourcing (KPO)	13197.1	3.69%	-0.23%	3.92% (May 2025)	2.63% (Jul 2024)	37.69 L	0
Bank Of Baroda	Public sector bank	11650.1	3.26%	-0.17%	3.79% (Apr 2025)	3.12% (Sep 2024)	4.68 Cr	0
Eris Lifesciences Ltd.	Pharmaceuticals	10163.2	2.84%	0.03%	2.84% (Jun 2025)	2.15% (Jul 2024)	60.36 L	0
Gabriel India Ltd.	Auto components & equipment	8502.6	2.38%	0.04%	2.38% (Jun 2025)	1.58% (Nov 2024)	1.21 Cr	0
Power Mech Projects Ltd.	Civil construction	8289.4	2.32%	0.06%	2.35% (Aug 2024)	1.58% (Feb 2025)	24.70 L	0
Fortis Healthcare Ltd.	Hospital	8003.1	2.24%	0.15%	2.88% (Mar 2025)	1.88% (Jul 2024)	1.01 Cr	0
Krishna Institute of Medical Sciences Ltd.	Hospital	7707.4	2.15%	-0.15%	2.43% (Apr 2025)	1.4% (Jul 2024)	1.14 Cr	0
Sonata Software Ltd.	Computers – software & consulting	7566.6	2.11%	-0.07%	3.08% (Jul 2024)	1.99% (Mar 2025)	1.85 Cr	2.87 L

Other’s 

Name	Type of Instrument	Weight (%)
TREPS	TREPS	6.51%
Net Receivables	Net Receivables	0.11%

How the Fund Invests: Strategy and Sector Exposure

The HDFC Small Cap Fund Growth primarily invests with a predominantly small-cap strategy, maintaining a minimum 65% of exposure to small-cap stocks and aiming for long-term capital appreciation through diversified investments in companies with smaller market capitalisation. 

Investment Strategy:

• Make sure to focus on identifying well-managed, scalable small-cap companies with high growth potential.  
• Always remember the usage of bottom-up stock picking, emphasising business quality, management strength, and long-term prospects. 
• While mainly small-cap, the fund may selectively invest in mid-cap and occasional large-cap stocks to manage risk and capture broader opportunities. 
• Always seeks to avoid repetitive or selective bets, preferring fundamentally sound businesses. 

Sector Exposure: 

• Services: 21%
• Healthcare: 12.6%
• Capital Goods: 11.6%
• Financial: 11.3%

Who Should Invest in HDFC Small Cap Fund Growth?

This fund is suitable for investors who are seeking a high-risk tolerance and a long-term investment for up to 7 years or more. This fund targets long-term capital appreciation by investing predominantly in small-cap companies. Here are the further details on who should invest in this mid-cap fund. 

• Investors are willing to endure high-risk market fluctuation and volatility typical of small-cap stocks.
• Those who have superior long-term growth potential as opposed to short-term stability. 
• Investors who are capable of staying invested for at least 7 years to benefit from compounding and the growth potential of small-cap stocks.
• Investors who are growth-oriented with a strong risk appetite, who prioritise wealth creation over immediate liquidity. 
• It is not suited for conservative investors who require liquidity or stability in the short term. 

How To Invest In HDFC Small Cap Fund Growth?

Here are the key points that someone needs to follow to invest in the HDFC Small Cap Fund Growth: 

• Choose Your Investment Mode
• Select Your Platform 
• Complete KYC and Register 
• Place Your Investment
• Track And Manage Your Platform

Costs and Taxation Of HDFC Small Cap Fund Growth

Cost 

Expense Ratio

• Direct Plan: Approximately 0.71% (as of July 2025)
• Regular Plan: Higher at around 1.57% (as of August 2025)

Exit Load: 1% exit load if units are redeemed within 1 year of investment. No exit load after it gets one year old. 

Minimum Investment: It can be started with a minimum investment of 500 rupees of 500 rupees in SIP. And the Look period of this investment comes with an open-ended scheme. 

Taxation 

• Short-Term Capital Gains: These gains are taxed at 20% if redeemed within 1 year.
• Long-term Capital Gains: Gains exceeding ₹ 1,25,000 in a financial year and held for more than 1 year are taxed at 12.5% without indexation benefits. 

Pros & Cons Of HDFC Small Cap Fund Growth

Pros 

• Strong long-term historical returns like 19.9% CAGR since inception. 
• Affordable expense ratio of 0.71% for the direct plan.
• Predominantly small-cap focused strategy with the exposure greater than 80%. 
• It is a well-diversified sector exposure including services, healthcare, and financials. 
• It is managed by experienced fund managers with a disciplined bottom-up approach. 

Cons

• High volatility and a very high risk are typical of smaller-cap funds. 
• It is not suitable for short-term or conservative investors due to risk and fluctuation. 
• The performance of the fund may underperform in certain short-term periods. 
• It comes with 1 % exit load if redeemed within 1 year, limiting short-term liquidity. 
•  Small-cap stocks carry inherent liquidity risk and market sensitivity.

Alternative Funds Of HDFC Small Cap Fund Growth

Given below are the alternative funds one can choose for themselves to invest in, rather than the HDFC Small Cap Fund Growth: 

Scheme Name	Crisil Rank	Asset Size (Cr)	1M	3M	6M	1Y	3Y
Motilal Oswal Small Cap Fund – Regular Plan – Growth	NA	5228.65	-4.14	7.63	2.3	7.39	0
Invesco India Smallcap Fund – Growth	4	7424.64	-3.43	9.86	4.74	6.89	26.2
PGIM India Small Cap Fund – Regular Plan – Growth	2	1560.68	-2.37	11.57	8.34	5.23	15.01
Quantum Small Cap Fund – Regular Plan – Growth	NA	141.83	-2.75	11.21	6.44	4.91	0
Bandhan Small Cap Fund – Regular Plan – Growth	5	12981.57	-2.9	10.47	6.14	4.86	30.04
Axis Small Cap Fund – Growth	4	26379.2	-3.79	7.34	4.72	4.06	19.73
ITI Small Cap Fund – Regular Plan – Growth	5	2640.78	-2.14	9.14	6.72	3.27	27.53
UTI Small Cap Fund – Regular Plan – Growth	4	4844.38	-3.62	9.97	3.16	2.3	19.27
Union Small Cap Fund – Regular Plan – Growth	1	1671.86	-2.24	11.49	5.44	1.05	17.94
Edelweiss Small Cap Fund – Regular Plan – Growth	4	4929.76	-4.1	8.18	3.44	0.89	20.94

More Funds To Invest In HDFC

Given below are the funds to consider investing in on behalf of the HDFC Small Cap Fund Growth: 

Scheme Name	Asset Size(Cr)	1M	3M	6M	1Y	3Y
HDFC Balanced Advantage Fund Regular-Growth	1,02,789.77	-2.13	2.12	7	1.23	20.19
HDFC Mid Cap Fund Regular-Growth	84,061.43	-0.65	8.58	12.24	2.91	28.05
HDFC Flexi Cap Fund Regular-Growth	79,584.54	-2.12	2.31	10.37	5.53	23.82
HDFC Liquid Fund Regular-Growth	63,547.69	0.48	1.53	3.41	7.03	6.95
HDFC Large Cap Fund Regular-Growth	38,905.12	-2.7	1.53	7.17	-1.77	17.69
HDFC Small Cap Fund Regular-Growth	35,780.59	0.5	12.38	14.6	1.69	25.88
HDFC Corporate Bond Fund Regular-Growth	35,685.99	0.68	1.64	4.83	9.06	8.01
HDFC Money Market Fund-Growth	31,769.06	0.58	1.86	4.25	7.99	7.45
HDFC Large and Mid Cap Fund Regular- Growth	25,412.03	-2.32	5.06	10.91	-0.76	21.8
HDFC Hybrid Equity Fund Regular-Growth	24,854.06	-1.47	3.13	8.32	2.89	14.41

Risk Ratio Of HDFC Small Cap Fund Growth

Low volatility	13.36vs13.69
High volatility	0.83vs0.83
Better risk-adjusted returns	1.38vs1.17
Better risk-adjusted returns	0.22vs0.19
Better risk-adjusted returns	4.13vs1.75

Conclusion

The above blog mentioned all the details available on the internet related to the HDFC Small Cap Fund Growth.  This fund has proven itself a strong contender in the small-cap category, consistently outperforming its peers over the long term. Its disciplined investment strategy, diversified sector exposure, and experienced fund management team have helped it deliver exceptional returns for investors who can handle market volatility. However, like any small-cap fund, it carries higher risk and suits investors who have a high risk appetite and an investment horizon of at least 7 years. 

Disclaimer- This blog post is just meant to give you information and should not be seen as advice about money. Investing in the SBI Balanced Advantage Fund Regular Growth has risks because of the market, and just because it did well in the past does not mean it will in the future. You should talk to a financial advisor before you choose where to put your money. The person who wrote this is not responsible if you lose money.

You can also read about:

• SBI Large and Midcap Fund Regular Growth: Analysis & Forecast