Invest in HSBC Small Cap Fund Direct Growth for Long-Term Gains

Investing in the HSBC Small Cap Fund Direct Growth can be a great way to grow your wealth over the long-term. This fund has a proven track record of delivering consistent returns.

The fund's investment objective is to provide long-term capital appreciation by investing in a diversified portfolio of small-cap stocks. It aims to generate returns that are higher than the benchmark index.

The fund is suitable for investors with a high-risk tolerance and a long-term investment horizon. It's essential to note that small-cap stocks can be more volatile than large-cap stocks.

The fund's investment strategy involves a bottom-up approach, where the fund manager selects stocks based on their individual merits rather than following a specific theme or sector.

The HSBC Small Cap Fund Direct Growth aims to provide long-term capital appreciation by investing in small cap stocks. It's designed to be a diversified equity fund.

The fund's benchmark is the NIFTY Smallcap 250 Total Return Index, which gives you an idea of how the fund is performing compared to the broader market. This index is a good gauge of the fund's success.

The fund will invest predominantly in small cap stocks, which can be a higher-risk, higher-reward strategy. However, it's worth noting that the fund may move a portion of its assets towards fixed income securities if the fund manager becomes negative on the Indian equity markets.

The HSBC Small Cap Equity Fund Direct Growth has a significant presence in the Indian market, ranking #21 in terms of total assets. It has an impressive Asset Under Management (AUM) of ₹1,18,706.31Cr.

The fund's primary investment objective is to generate long-term capital appreciation by investing predominantly in small-cap stocks. The scheme aims to achieve this by tracking the NIFTY Smallcap 250 Total Return Index.

To achieve its investment objective, the fund will invest in a diversified portfolio of equity and equity-related securities of predominantly small-cap companies. However, it may also invest a portion of its assets in fixed income securities if the fund manager becomes negative on the Indian equity markets.

Here are some key facts about the fund's investment details:

The fund has a minimum SIP investment of ₹500 and an exit load of 1% if redeemed within 1 year. The current fund manager is Dhiraj Sachdev, and the latest NAV as of 25 Nov 2022 is ₹90.74.

At the heart of our investment approach is a disciplined philosophy that guides every decision we make. We believe that fundamental research is the foundation of sound investment decision making.

We focus on companies that have a winning combination of profitability and valuation. This means we're looking for businesses that are not only making money, but also trading at a price that's reasonable.

Our goal is to own scalable businesses with strong execution capability, proven management track record, and solid financials. This ensures that our investments have a solid foundation for growth.

Here are the key characteristics we look for in a company:

Remember, mutual fund investments are subject to market risks, so it's essential to read all scheme-related documents carefully before making a decision.

The HSBC Small Cap Fund Direct Growth is a great option for investors looking to diversify their portfolio.

This fund is an open-ended equity scheme that invests in small-cap stocks, which are companies with a market capitalization of less than Rs 5,000 crore.

The fund's primary objective is to generate long-term capital growth from a diversified portfolio of equity and equity-related securities.

Its investment strategy involves investing in a mix of high-growth and stable companies in the small-cap space.

The fund's net assets value (NAV) is calculated on a daily basis, providing investors with real-time information about their investments.

The fund's expense ratio is 1.88%, which is lower than many other small-cap funds available in the market.

The HSBC Small Cap Fund Direct Growth is designed to provide long-term capital appreciation and invest predominantly in equity and equity-related securities, including equity derivatives in Indian markets with a focus on emerging companies (small cap stocks).

The fund's top holdings are diverse, with a mix of companies from various sectors.

Here are the top holdings with their respective weightage:

The HSBC Small Cap Fund is designed for investors seeking long-term capital appreciation and a predominantly equity-based investment. This fund aims to create a corpus through generating inflation-adjusted returns to cater to long-term goals.

The fund's objective is to seek an exposure in small cap segment stocks for higher alpha generating opportunities. A top-down and bottom-up approach will be used to invest in equity and equity-related instruments.

Investors should note that the fund will stay true to its objective, keeping with the mandate reposed by the investor while investing in the fund. This is a true to label fund, ensuring that the investment aligns with the investor's goals.

The fund's suitability is for investors seeking long-term capital appreciation and investment predominantly in equity and equity-related securities, including equity derivatives in Indian markets with a key theme focus being emerging companies (small cap stocks).

Let's take a closer look at the top holdings in our portfolio. Apar Industries Ltd is the largest holding, making up 2.71% of our overall investment.

In fact, Apar Industries Ltd is followed closely by Aditya Birla Real Estate Ltd, which accounts for 2.61% of our portfolio. Neuland Laboratories Limited is another significant holding, making up 2.43%.

Interestingly, Kirloskar Pneumatic Co Ltd and BSE Ltd are also among the top holdings, with weightages of 2.4% and 2.33% respectively. Techno Electric & Engineering Co Ltd and Trent Ltd round out the top five, with weightages of 2.29% and 2.26%.

Here's a breakdown of the top holdings in our portfolio:

These top holdings give us a good idea of the diversification of our portfolio, and help us make informed decisions about our investment strategy.