HDFC Small Cap Fund Gave Best SIP Return in Last 10 Years : The small cap fund of HDFC Mutual Fund, one of the leading fund houses of the country, has given huge profits to those investing through Systematic Investment Plan (SIP) in the last 10 years. If an investor had started investing Rs 10,000 every month through monthly SIP in the direct plan of HDFC Small Cap Fund 10 years ago, then his current fund value would have been more than Rs 42 lakh. Not only this, this scheme has also given huge returns of more than 566% in the last 10 years to lump sum investors.
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Past Returns of HDFC Small Cap Fund
HDFC Small Cap Fund has given much better results than its investors’ benchmark over the long term. The benchmark of the scheme is BSE 250 Small Cap Total Return Index (BSE 250 SmallCap TRI), whose 10-year average annual return has been 16.77%. During this period, the direct plan of HDFC Small Cap Fund has given annual returns at the rate of 20.87% and the regular plan has given annual returns at the rate of 19.53%. The 10 year annualized performance of this scheme has been even better on investments made through SIP.
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HDFC Small Cap Fund: Did wonders in 10 years!
- Annualized Return on Lump Sum Investment: 20.87% (Direct Plan), 19.53% (Regular Plan)
- Annualized Returns on SIP: 23.92% (Direct Plan), 22.7% (Regular Plan)
Fund value after 10 years of investment of Rs 1 lakh
- Direct Plan: Rs 6,66,808 (Absolute Return 566.81%)
- Regular Plan: Rs 5,96,321 (Absolute Return 496.32%)
Fund value of monthly SIP of Rs 10 thousand after 10 years
- Direct Plan: Rs 42,60,074 (Absolute Return 255.01%)
- Regular Plan: Rs 39,87,487 (Absolute Return 232.29%)
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What is special in HDFC Small Cap Fund?
HDFC Small Cap Fund is an open ended equity scheme, which was launched on 2 January 2013. The current asset under management (AUM) of this fund is Rs 35,104.42 crore. On Riskometer, this scheme has been placed in the category of funds with very high risk level. According to SEBI rules, at any time, at least 65% of the corpus of this fund is required to be invested in small cap funds. According to the latest data, currently 93.72% of this fund is invested in Indian stocks, in which the share of large cap is 3.41%. %, the share of mid cap stocks is 4.37% and the share of small cap stocks is 67.52%.
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Take a decision after looking at the risk-return balance
Small cap stocks have more risk, but they also have the potential to give high returns. Therefore, before investing in any small cap fund, you should carefully assess your risk appetite. Apart from this, the share of small cap funds in your entire portfolio should not be more than 10-15 percent. If you have invested in flexi cap or multicap fund, then through that also you get exposure to small cap stocks. Therefore, before deciding to invest money in a separate small cap fund, understand this also.
(Disclaimer: The purpose of this article is only to provide information and not to advise investment in any scheme. The past performance of a mutual fund scheme is not a guarantee that it will continue in the future. Take investment decisions only after taking the advice of your investment advisor.)
