HDFC Small Cap Fund
Direct · GrowthAI Summary
HDFC Small Cap Fund has delivered strong SIP XIRR across horizons, with 21.21% over 3Y and 21.19% over 10Y, though it trails the category average SIP XIRR of 22.67% (3Y) and 22.02% (5Y). Against the NIFTY SmallCap 250 benchmark, the fund's lump-sum CAGR lags over 1Y (1.06% vs 8.7%) and 3Y (12.98% vs 17.4%), but outperforms meaningfully over longer periods, with 10Y alpha of 5.10% and 12Y alpha of 5.56%. This suggests the fund's edge emerges over extended holding periods rather than in short-term rallies.
The fund exhibits a defensive risk profile for a small-cap fund, with beta consistently between 0.81 and 0.85 and downside capture below 83% across most windows, cushioning losses in weak markets. Six drawdown events exceeding 10% reflect the inherent volatility of the small-cap segment, and the maximum drawdown recovery took 286 days within a 694-day drawdown duration. Calmar ratios of roughly 0.38 to 0.44 across horizons indicate moderate risk-adjusted efficiency, consistent with a lower-volatility but also lower-upside-capture (around 80-85%) approach.
The portfolio holds 82 stocks with a well-diversified top 10 accounting for only about 25% of NAV, led by Firstsource Solutions (4.24%) and Aster DM Quality Care (3.89%). Sector allocation is spread across Auto Components (11.9%), Healthcare Services (9.6%), Banks (9.0%), and Commercial Services & Supplies (8.6%), with no single sector dominating. The meaningful tilt toward healthcare services and public sector banks (Bank of Baroda, Indian Bank, Federal Bank) reflects a value-oriented, defensive positioning within small caps.
The fund's SIP XIRR trails category averages across most horizons, including 21.21% vs 22.67% over 3Y and 20.13% vs 22.02% over 5Y, indicating middling relative performance among small-cap peers recently. However, its long-term lump-sum record is stronger, beating the benchmark by 4.46% annualized over 15Y (14.46% vs 10.84%). Calendar year returns show high dispersion, from 65.73% in 2021 to -8.73% in 2019, typical of the category, with the fund's consistency best judged over 7-10 year windows.
This fund suits investors with a high risk tolerance and a horizon of at least 7 years, as its benchmark outperformance and positive alpha emerge clearly only over 5Y-plus periods. It is appropriate as a satellite allocation within a diversified portfolio, given small caps' sharp drawdowns and multi-year recovery periods. Investors seeking steady short-term outperformance versus the small-cap index or category may be disappointed by its recent 1Y and 3Y lag.
- Strong long-term benchmark outperformance with 10Y alpha of 5.10% and 12Y alpha of 5.56% versus the NIFTY SmallCap 250
- Defensive characteristics with beta around 0.81-0.85 and downside capture as low as 76.67% over 15Y, limiting losses in market downturns
- Well-diversified 82-stock portfolio with top 10 holdings at only about 25% of NAV and no sector concentration above 12%
- SIP XIRR trails category averages across all horizons from 1Y to 12Y, including 21.21% vs 22.67% over 3Y
- Recent underperformance versus the benchmark, with negative alpha of -7.30% over 1Y and -2.32% over 3Y and upside capture below 82%, suggesting the fund may lag in strong small-cap rallies
Generated on 02-09-2026, 2:48 AM. Verify before investing.
Gives more importance to longer time periods (10Y, 20Y) than shorter ones (1Y, 3Y). This balances out recent outperformance and gives a more realistic picture of what long-term returns might look like.
The largest peak-to-trough decline in the fund's NAV. Shows the worst-case loss an investor would have experienced at any point in the fund's history.
If you invested ₹1,00,000 every month via SIP, here's how this fund has historically performed across different time horizons.
| Duration | Invested | Median Value | XIRR | Min XIRR | Max XIRR |
|---|---|---|---|---|---|
| 1 Year | ₹12.00 L | ₹12.90 L | 22.0% | -65.5% | 128.0% |
| 3 Years | ₹36.00 L | ₹50.51 L | 21.2% | -30.9% | 48.2% |
| 5 Years | ₹60.00 L | ₹1.02 Cr | 20.1% | -12.0% | 37.7% |
| 7 Years | ₹84.00 L | ₹1.83 Cr | 22.7% | 14.6% | 29.1% |
| 10 Years | ₹1.20 Cr | ₹3.65 Cr | 21.2% | 16.6% | 24.6% |
| 12 Years | ₹1.44 Cr | ₹4.62 Cr | 18.2% | 17.7% | 18.7% |
SIP returns vs benchmark & category
Annualised SIP return (XIRR) over each rolling horizon — like-for-like, not lump-sum.
| Duration | Fund SIP XIRR | NIFTY SMALLCAP 250 | Category avg | Fund edge |
|---|---|---|---|---|
| 1 Year | 22.0% | 22.0% | 21.6% | +0.0% |
| 3 Years | 21.2% | 15.3% | 22.7% | +5.9% |
| 5 Years | 20.1% | 14.3% | 22.0% | +5.9% |
| 7 Years | 22.7% | 14.3% | 21.8% | +8.4% |
| 10 Years | 21.2% | 14.0% | 20.9% | +7.2% |
| 12 Years | 18.2% | 13.5% | 19.4% | +4.8% |
| Duration | Mean | Median | Min | Max | Sharpe | Sortino | % Positive | Cat. Mean | Cat. Median |
|---|---|---|---|---|---|---|---|---|---|
| 1 Year | 21.3% | 13.1% | -43.6% | 126.3% | 0.51 | 1.66 | 78% | — | — |
| 3 Years | 20.5% | 21.2% | -8.8% | 49.7% | 1.23 | 4.97 | 94% | — | — |
| 5 Years | 19.4% | 18.9% | 0.4% | 39.5% | 1.59 | 18.87 | 100% | — | — |
| 10 Years | 19.6% | 19.4% | 17.0% | 22.3% | 11.31 | — | 100% | — | — |
Calmar Ratio by Duration
Compared against NIFTY SMALLCAP 250
| Duration | Alpha | Beta | Upside Capture | Downside Capture | Fund CAGR | Bench CAGR |
|---|---|---|---|---|---|---|
| 1 Year | -7.30 | 0.85 | 81.5% | 87.3% | 1.1% | 8.7% |
| 3 Years | -2.32 | 0.81 | 79.6% | 80.1% | 13.0% | 17.4% |
| 5 Years | +1.88 | 0.83 | 83.9% | 81.4% | 16.3% | 16.0% |
| 7 Years | +1.87 | 0.85 | 85.0% | 82.4% | 21.7% | 22.1% |
| 10 Years | +5.10 | 0.82 | 83.4% | 78.2% | 18.0% | 14.3% |
| 12 Years | +5.56 | 0.81 | 82.8% | 77.2% | 18.2% | 14.0% |
| 15 Years | +4.46 | 0.81 | 82.7% | 76.7% | 14.5% | 10.8% |
| # | Stock | % of NAV |
|---|---|---|
| 1 | Firstsource Solutions Ltd. | 4.24% |
| 2 | Aster DM Quality Care Limited | 3.89% |
| 3 | Gabriel India Ltd. | 3.34% |
| 4 | eClerx Services Limited | 2.85% |
| 5 | Bank of Baroda | 2.73% |
| 6 | Krishna Institute Of Medical Sciences Limited | 2.15% |
| 7 | Eris Lifesciences Ltd | 2.10% |
| 8 | Fortis Healthcare Limited | 1.99% |
| 9 | Indian Bank | 1.94% |
| 10 | The Federal Bank Ltd. | 1.79% |