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HSBC Small Cap Fund
HSBC Small Cap Fund is an investment opportunity offered by L&T Mutual Fund House since 12 May 2014. The fund is designed to capitalise on the potential for growth in emerging businesses. This mutual fund aims to deliver attractive returns by investing in a diversified portfolio of smaller companies with high growth prospects. Keep reading to learn about the HSBC Small Cap Fund in detail.
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About HSBC Small Cap Fund
HSBC Small Cap Fund, earlier known as L&T Emerging Business Fund, is an equity mutual fund scheme launched by HSBC Mutual Fund House on 27 May 2002.
The HSBC Small Cap Equity Fund has merged with the L&T Emerging Businesses Fund, and as a result, the surviving fund has been renamed the HSBC Small Cap Fund.
The HSBC Mutual Fund House believes in rigorous research as an investment strategy. Their focus is on companies that offer a compelling mix of profitability and value.
This open-ended mutual fund is ideal for investors who seek long-term capital appreciation and have a risk profile to invest in small-cap equities.
Overview of HSBC Small Cap Fund
| Particulars | Details |
| Fund Name | HSBC Small Cap Fund |
| Fund House | HSBC Mutual Fund |
| Launched On | 12 May 2014 |
| Asset Under Management (AUM) | Rs. 96,030.39 Crores |
| Benchmark Index | Nifty Small-cap 250 TRI |
| Risk Category | Very High |
| Investment Objective | To grow capital over the long term by actively managing investments in small-cap companies. If the fund manager becomes pessimistic about the Indian stock market, the assets get allocated to fixed-income securities. Please note that HSBC Mutual Fund House does not guarantee that they will achieve their investment objective. |
| Fund Options |
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| Net Asset Value (as of 09 October 2023) |
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| Asset Allocation |
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| Market Cap Allocation |
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| Systematic Investment Plan (SIP) | Available from Rs. 500 |
| Lock- in | No Lock-in Period |
| Fund Manager |
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| Expense Ratio |
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| Exit Load |
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*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
Top Holdings of HSBC Small Cap Fund
| Name of Holdings | % of Total Holdings |
| Top 5 Equity Holdings (98.82%) | |
| Apar Industries Ltd. | 3.50% |
| K.P.R. Mill Ltd. | 3.22% |
| KEI Industries Ltd. | 2.24% |
| Cera Sanitaryware Ltd. | 2.23% |
| Sonata Software Ltd. | 2.22% |
| Other Cash Holdings (1.18%) | |
| TREPS | 1.55% |
| Net Receivables | -0.37% |
Top 10 Sector Allocations of HSBC Small Cap Fund
| Sector | % of Total Holdings |
| Construction | 17.80% |
| Capital Goods | 15.40% |
| Others | 13.20% |
| Metals & Mining | 10.40% |
| Chemicals | 8.50% |
| Financial | 7.90% |
| Technology | 7.50% |
| Consumer Staples | 6.60% |
| Services | 6.50% |
| Textiles | 6.20% |
HSBC Small Cap Fund Returns
| Investment Period | Annualised Returns (Regular) | Annualised Returns (Direct) |
| 1-Year | 34.05% | 35.45% |
| 2-Year | 17.79% | 19.04% |
| 3-Year | 42.22% | 43.73% |
| 5-Year | 21.18% | 22.51% |
| Returns Since Inception (RSI) | 21.51% | 22.64% |
*Fund NAV as of 31 August 2023
Documents Required to Invest in HSBC Small Cap Fund
You need to submit the following documents to invest in the HSBC Small Cap Fund:
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KYC Documents
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A Valid Government-issued Photo ID (like an Aadhar card, passport, or driver's license)
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One Proof of Address (utility bill, bank statement, or rental agreement)
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PAN Card
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Duly Filled Application Form
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Bank Account Details
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Passport-size photographs
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Cancelled Cheque
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NRI/ OCI/ PIOs Documents
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Overseas Address Proof
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Valid NRI/ PIO Card
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Valid Visa
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NRE/ NRO Account Details
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Steps to Invest in HSBC Small Cap Fund
Follow the simple steps mentioned below to start investing in HSBC Small Cap Fund:
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KYC Verification: Ensure your KYC is complete. If not, submit your KYC documents to any KYC registration agency (KRA).
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Select Investment Mode: Choose between any of the following modes of investment:
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Physical form (with a distributor)
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Online mode (through HSBC's website or mobile app)
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Fill Application Form: Complete the application form with personal and investment details.
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Fund Selection: Specify that you want to invest in the "HSBC Small Cap Fund."
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Make Payment: Make your investment by transferring funds through any of the following:
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NEFT/RTGS
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Cheque
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Demand Draft
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UPI
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Net Banking
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Submit Documents: If investing physically, submit the application form and documents to your nearest HSBC branch or distributor.
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Get Confirmation: You will receive a confirmation of your investment, and your units will be allocated.
Estimate HSBC Small Cap Fund Returns with SIP Calculator
You can estimate potential returns from the HSBC Small Cap Fund using a Systematic Investment Plan Calculator or SIP Calculator. All you need to do is enter the following details in the calculator:
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SIP Amount
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Investment Period
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Expected Annual Return
Using these inputs, you can use an online SIP calculator to estimate potential final returns from your investments in the HSBC Small Cap Fund.
FAQ's
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What is the minimum SIP amount in the HSBC small-cap fund?
The minimum SIP amount in the HSBC Small Cap Fund is ₹500. -
How do I redeem my HSBC small-cap fund?
You can redeem your HSBC Small Cap Fund units in the following way:-
Go to the HSBC Asset Management website and log in to your account.
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Click on the "Transactions" tab.
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Under "Redemption", select "HSBC Small Cap Fund".
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Enter the number of units you want to redeem and the redemption date.
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Click on "Submit".
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Are small-cap funds good to invest in?
Small-cap funds can be a good investment for investors who have a high-risk appetite and a long investment horizon. However, it is important to do your research and understand the risks involved before investing.
*All savings are provided by the insurer as per the IRDAI approved insurance
plan.
*Tax benefit is subject to changes in tax laws. Standard T&C Apply
~Source - Google Review Rating available on:- http://bit.ly/3J20bXZ
^^The information relating to mutual funds presented in this article is for educational purpose only and is not meant for sale. Investment is subject to market risks and the risk is borne by the investor. Please consult your financial advisor before planning your investments.
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