HSBC Small Cap Fund Fund Direct Growth

HSBC Small Cap Fund Fund Direct Growth is an equity fund. This fund was started on 12 May, 2014. The fund is managed by Sonal Gupta, Venugopal Manghat. The fund could potentially beat inflation in the long-run.

1. HSBC Small Cap Fund Fund Direct Growth has ₹16061 Cr worth of assets under management (AUM) as on Jun 2025 and is more than category average.
2. The fund has an expense ratio 0.6.
   

HSBC Small Cap Fund Fund Direct Growth has given a CAGR return of 22.16% since inception. Over the last 1, 3 and 5 years the fund has given a CAGR return of -2.24%, 28.07% and 36.40% respectively.

HSBC Small Cap Fund Fund Direct Growth has allocated its funds majorly in Cash Equivalent, Industrial, Financial Services, Consumer Cyclical, Basic Materials, Tech, Health, Consumer Defensive, Real Estate, Energy. Its top holdings are Aditya Birla Real Estate Ltd, Techno Electric & Engineering Co Ltd, K.P.R. Mill Ltd, Nippon Life India Asset Management Ltd Ordinary Shares, Multi Commodity Exchange of India Ltd

As it is a small-cap mutual fund the taxation is as follows:
For short term (less than a year) capital gains will be taxed at 20%
For long term (more than 1 year) capital gains will be taxed at 12.5% without indexation benefit
Dividends will always be taxed at slab rate. Long term gains upto Rs 1 lakh are exempt capital gains tax.

To generate long term capital growth from an actively managed portfolio of equity and equity related securities of predominantly small cap companies. However, it could move a portion of its assets towards fixed income securities if the fund manager becomes negative on the Indian equity markets. However, there can be no assurance or guarantee that the investment objective of the scheme would be achieved.

Minimum investment for lump sum payment is INR 5000.00 and for SIP is INR 500.00. HSBC Small Cap Fund Fund Direct Growth has no lock in period.