HSBC Small Cap Fund Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?
- September 11, 2026
- Posted by: Chaitanya Auti
- Category: Mutual Funds
HSBC Small Cap Fund Direct Growth Plan is at a NAV of ₹103.7388 as of 10 Sep 2026, with scheme AUM of ₹19,076 Cr. Its 1-year, 3-year and 5-year returns are 14.91%, 14.58% and 18.18%, and the fund sits in the High Risk category.
Our view is that this is a small-cap fund for investors who can stay patient through sharp swings. The longer record is stronger than the benchmark, while the recent 1-year figure is also comfortably ahead of the index, but the portfolio remains built around smaller businesses and that keeps the ride uneven.
Quick facts
| Particular | Details |
|---|---|
| NAV | ₹103.7388 as of 10 Sep 2026 |
| AUM | ₹19,076 Cr |
| Expense Ratio | 0.64% |
| Launch Date | 12 May 2014 |
| Min SIP | ₹500 |
| Risk Category | High Risk |
| Benchmark | Nifty Small Cap |
| Fund Category | Equity |
| Exit Load | Nil upto 10% of units and 1% for above the limits on or before 1Y, Nil after 1Y |
| Fund Managers | Venugopal Manghat |
The fund is managed by Venugopal Manghat.
Source data date: as of 10 Sep 2026
Performance
| Period | Fund return | Benchmark return |
|---|---|---|
| 1M | 3.05% | 0.28% |
| 3M | 15.22% | 10.76% |
| 1Y | 14.91% | 5.51% |
| 3Y | 14.58% | 15.26% |
| 5Y | 18.18% | 14.5% |
The recent pattern is steady rather than explosive. Over the last month and quarter, the fund has stayed positive and has kept a clear edge over the benchmark, which suggests that short-term momentum has remained intact even when small-cap sentiment has been uneven.
The 1-year return also stays well above the index, so the fund has handled the latest cycle better than the benchmark. That said, the 3-year comparison shows the benchmark slightly ahead, which tells us the fund has not led every part of the market’s recent journey.
The longer view is more constructive. The 5-year return is stronger than the benchmark, and that gap matters more for a small-cap strategy than any single quarter. In our view, the series points to a fund that has delivered through multiple phases, but with enough volatility to remind investors that small-cap compounding rarely moves in a straight line.
Source data date: as of 10 Sep 2026
Should you BUY or HOLD HSBC Small Cap?
A fund’s past returns alone don’t tell you whether you should buy it today or continue holding it.
The right decision depends on factors such as your current allocation, purchase price, risk profile, investment horizon and the role this fund plays in your overall portfolio.
Already holding HSBC Small Cap? Thinking of investing now?
Peer comparison
This assessment is prepared by Uniapps Investment Adviser Pvt. Ltd. under SEBI Registered Investment Adviser registration INA000017639.
| Fund | 1Y return | 3Y return | 5Y return |
|---|---|---|---|
| HSBC Small Cap Fund Direct Growth Plan | 14.91% | 14.58% | 18.18% |
| TRUSTMF Small Cap Fund Direct Growth Plan | 34.09% | Data not available | Data not available |
| Bank of India Small Cap Fund Direct Growth Plan | 27.56% | 21.86% | 20.52% |
| Motilal Oswal Small Cap Fund Direct Growth Plan | 24.72% | Data not available | Data not available |
| Union Small Cap Fund Direct Growth Plan | 24.4% | 17.51% | 17.94% |
| ITI Small Cap Fund Direct Growth Plan | 23.86% | 25.25% | 19.57% |
On the latest 1-year numbers, HSBC Small Cap Fund Direct Growth Plan trails the strongest peer figures in this set, especially the higher one-year outcomes posted by TRUSTMF Small Cap Fund Direct Growth Plan and Bank of India Small Cap Fund Direct Growth Plan. Even so, its own 1-year return remains positive and above the benchmark’s 5.51%, which keeps the recent picture respectable rather than weak.
For medium and longer stretches, the comparison is more balanced. HSBC Small Cap Fund Direct Growth Plan is below Bank of India Small Cap Fund Direct Growth Plan on both 3-year and 5-year returns, but it is ahead of Union Small Cap Fund Direct Growth Plan on both periods. Versus ITI Small Cap Fund Direct Growth Plan, the fund is weaker on the available 3-year figure and slightly weaker on 5-year performance as well. The short-term story and the longer-term story therefore do not fully match: the fund looks more competitive on the latest year than on the multi-year peer comparison.
Source data date: as of 10 Sep 2026
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Portfolio: where your money goes
| Holding | Sector | Weight |
|---|---|---|
| Apar Industries Ltd | Capital Goods | 2.33% |
| Ather Energy Limited | Domestic Equities | 2.16% |
| Karur Vysya Bank Limited | Bank | 2.12% |
| The Federal Bank Limited | Bank | 2.11% |
| Happy Forgings Limited | Automobile & Ancillaries | 2.08% |
| Sai Life Sciences Ltd. | Domestic Equities | 2.05% |
| Vijaya Diagnostic Centre Limited | Healthcare | 1.99% |
| Neuland Laboratories Ltd | Healthcare | 1.95% |
| Radico Khaitan Limited | Alcohol | 1.84% |
| PNB Housing Finance Limited | Finance | 1.8% |
The largest holding is Apar Industries Ltd at 2.33%, so no single position dominates the portfolio on its own. The drop from the first holding to the tenth is modest, from 2.33% to 1.8%, which suggests the visible part of the book is spread fairly evenly across individual names rather than hinging on one very large bet.
The top 10 holdings together account for about 20.43% of the portfolio, while the fund has 77 disclosed holdings in total. That combination points to a longer tail of positions beyond the ten largest names, so the fund may be diversified across many stocks even though each individual holding remains relatively small. In our view, that structure could help reduce reliance on any one company, but the small-cap style still means each position may carry meaningful price sensitivity.
To see all holdings, visit the HSBC Small Cap Fund Direct Growth Plan page
Source data date: as of 10 Sep 2026
Who should invest
This fund fits investors who are comfortable with High Risk exposure and can stay invested for a long horizon. The 1-year return is ahead of the benchmark, the 3-year return is close to the index, and the 5-year return is stronger, so it has shown that it can participate in multi-year small-cap gains without being smooth in every period.
The main trade-off is volatility. The portfolio is built from smaller businesses, which can support long-term growth but can also move sharply when market sentiment changes. For investors who want equity upside and can tolerate uneven short-term outcomes, the fund is more relevant than for anyone seeking a stable return path.
Tax and exit load
| Holding period | Tax rate | Description |
|---|---|---|
| Units held less than 1 year | 20% | Short-term capital gains tax |
| Units held more than 1 year | 12.5% | Long-term capital gains tax |
Exit load: Nil upto 10% of units and 1% for above the limits on or before 1Y, Nil after 1Y.
Source data date: as of 10 Sep 2026
Frequently asked questions
What is the current NAV of HSBC Small Cap Fund Direct Growth Plan?
The current NAV is ₹103.7388 as of 10 Sep 2026.
What are the fund’s 1-year, 3-year and 5-year returns?
The fund’s returns are 14.91% over 1 year, 14.58% over 3 years and 18.18% over 5 years.
How does the fund compare with its benchmark?
It is ahead of the benchmark on the 1-month, 3-month, 1-year and 5-year periods, while the benchmark is slightly ahead over 3 years. The 5-year comparison is still favourable to the fund.
How does it compare with the peer funds listed here?
Its 1-year return is below several peers in this set, including TRUSTMF Small Cap Fund Direct Growth Plan and Bank of India Small Cap Fund Direct Growth Plan. On 3-year and 5-year numbers, it is ahead of some peers but behind others, so the comparison is mixed.
What is the minimum SIP amount?
The minimum SIP amount is ₹500.
Who manages the fund and what is the exit load?
Venugopal Manghat manages the fund. The exit load is nil upto 10% of units and 1% for above the limits on or before 1Y, and nil after 1Y.
Bottom line
HSBC Small Cap Fund Direct Growth Plan has been more convincing over the 5-year period than over the 3-year stretch, and its latest 1-year result also compares well with the benchmark. Against peers, the recent return is respectable but not the strongest in the set, while the longer-term figures sit in the middle of the available comparison. The portfolio is built from many relatively small positions, which may keep single-stock dependence contained but does not reduce the fund’s High Risk profile. It suits patient investors who can live with swings in exchange for small-cap growth potential.
Published on 11 September 2026 at 2:08 PM IST
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RIA disclosure
Mutual fund investments are subject to market risks. Read all scheme-related documents carefully before investing. This review is prepared by Uniapps Investment Adviser Pvt. Ltd. (earlier known as Uniapps Global Research Pvt. Ltd.) under SEBI Registered Investment Adviser registration INA000017639 for general informational purposes and is not personalized investment advice.