HSBC Small Cap Fund
Direct · GrowthAI Summary
HSBC Small Cap Fund has delivered strong long-term SIP XIRR of 21.57% over 10 years and 18.93% over 12 years, outperforming the category averages of 20.91% and 19.35% respectively. However, its 3-year XIRR of 21.80% trails the category average of 22.67%, and its 1-year XIRR of 23.24% is above the category's 21.59%. Versus the NIFTY SMALLCAP 250, the fund has consistently generated positive alpha, with 10-year alpha of 5.88% and 12-year alpha of 6.65%, while its CAGR has beaten the benchmark across all periods shown.
The fund exhibits a maximum drawdown of -52.45% with a recovery period of 329 days, indicating significant downside risk typical of small-cap funds. It has experienced 8 drawdown events exceeding 10%, and the average drawdown is -8.92%. The Calmar ratio ranges from 0.37 to 0.42 across durations, suggesting moderate risk-adjusted returns, with the 1-year ratio of 0.42 being the highest.
The fund holds a diversified portfolio of 100 stocks, with the top 10 holdings accounting for only about 19% of NAV, indicating low concentration risk. Top holdings include Federal Bank (2.28%), Karur Vysya Bank (2.24%), and APAR Industries (1.99%), spanning sectors like banks, pharmaceuticals, and healthcare. Sector concentration is moderate, with the top 5 sectors comprising 43.5% of the portfolio, led by Industrial Products (12.7%) and Pharmaceuticals (8.8%).
The fund's long-term performance (7Y, 10Y, 12Y) has consistently beaten the category average SIP XIRR, with 7Y at 23.12% vs 21.81% and 10Y at 21.57% vs 20.91%. However, its 3-year XIRR lags the category by 0.87 percentage points, and its 5-year XIRR of 20.30% is below the category's 22.02%. The fund has shown strong calendar-year returns in bull markets (2021: 78.19%, 2023: 46.37%) but also sharp declines in bear years (2018: -12.91%, 2025: -11.43%), indicating cyclicality consistent with the small-cap category.
This fund is suitable for investors with a high risk tolerance and a long-term investment horizon of at least 7-10 years, given the high volatility and drawdown risk inherent in small-cap investing. It is ideal for those seeking capital appreciation through exposure to small-cap companies and who can withstand significant interim losses. Investors should be prepared for sharp drawdowns, as evidenced by the -52% maximum drawdown, and should consider this as a satellite allocation within a diversified portfolio.
- Consistent long-term outperformance versus the benchmark, with positive alpha across all periods (1Y to 15Y).
- Lower downside capture than upside capture across all periods, indicating better protection in market declines (e.g., 10Y downside capture 81.91% vs upside 87.67%).
- Diversified portfolio with 100 holdings and low top-10 concentration, reducing single-stock risk.
- 3-year and 5-year SIP XIRR lag the category averages, suggesting recent underperformance relative to peers.
- High maximum drawdown of -52.45% and 8 drawdown events exceeding 10%, indicating significant volatility and potential for large losses.
Generated on 30-08-2026, 3:07 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 | ₹12.88 L | 23.2% | -65.8% | 121.1% |
| 3 Years | ₹36.00 L | ₹53.26 L | 21.8% | -33.4% | 53.8% |
| 5 Years | ₹60.00 L | ₹1.04 Cr | 20.3% | -13.3% | 40.7% |
| 7 Years | ₹84.00 L | ₹1.85 Cr | 23.1% | 14.6% | 31.1% |
| 10 Years | ₹1.20 Cr | ₹3.57 Cr | 21.6% | 15.9% | 25.9% |
| 12 Years | ₹1.44 Cr | ₹4.87 Cr | 18.9% | 16.7% | 19.8% |
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 | 23.2% | 22.0% | 21.6% | +1.3% |
| 3 Years | 21.8% | 15.3% | 22.7% | +6.5% |
| 5 Years | 20.3% | 14.3% | 22.0% | +6.0% |
| 7 Years | 23.1% | 14.3% | 21.8% | +8.8% |
| 10 Years | 21.6% | 14.0% | 20.9% | +7.6% |
| 12 Years | 18.9% | 13.5% | 19.4% | +5.5% |
| Duration | Mean | Median | Min | Max | Sharpe | Sortino | % Positive | Cat. Mean | Cat. Median |
|---|---|---|---|---|---|---|---|---|---|
| 1 Year | 22.3% | 14.4% | -42.6% | 123.0% | 0.50 | 1.61 | 74% | — | — |
| 3 Years | 21.1% | 22.6% | -11.6% | 51.2% | 1.14 | 3.81 | 90% | — | — |
| 5 Years | 19.7% | 18.9% | 0.5% | 41.4% | 1.56 | 22.07 | 100% | — | — |
| 10 Years | 20.3% | 19.8% | 17.3% | 23.6% | 8.84 | — | 100% | — | — |
Calmar Ratio by Duration
Compared against NIFTY SMALLCAP 250
| Duration | Alpha | Beta | Upside Capture | Downside Capture | Fund CAGR | Bench CAGR |
|---|---|---|---|---|---|---|
| 1 Year | +6.11 | 0.98 | 99.1% | 92.9% | 14.8% | 8.7% |
| 3 Years | +0.46 | 0.92 | 92.6% | 91.6% | 17.0% | 17.4% |
| 5 Years | +4.03 | 0.91 | 92.4% | 88.4% | 19.2% | 16.0% |
| 7 Years | +3.56 | 0.90 | 90.6% | 87.1% | 24.1% | 22.1% |
| 10 Years | +5.88 | 0.86 | 87.7% | 81.9% | 19.1% | 14.3% |
| 12 Years | +6.65 | 0.86 | 87.3% | 80.9% | 19.6% | 14.0% |
| 15 Years | +4.80 | 0.84 | 86.4% | 80.4% | 16.6% | 12.8% |
| # | Stock | % of NAV |
|---|---|---|
| 1 | The Federal Bank Limited | 2.28% |
| 2 | Karur Vysya Bank Limited | 2.24% |
| 3 | APAR INDUSTRIES LTD | 1.99% |
| 4 | Sai Life Sciences Ltd. | 1.98% |
| 5 | Radico Khaitan Limited | 1.92% |
| 6 | PNB Housing Finance Limited | 1.77% |
| 7 | Aster DM Healthcare Limited | 1.75% |
| 8 | Neuland Laboratories Ltd | 1.73% |
| 9 | Ather Energy Limited | 1.70% |
| 10 | VIJAYA DIAGNOSTIC CENTRE LIMITED | 1.68% |