Is HDFC Small Cap Fund Right for Aggressive Investors?

[Mangalmishi]

Hi all!

I’ve been looking into small-cap funds as a way to add higher-growth potential to my portfolio, and the HDFC Small Cap Fund seems interesting. I know that small caps tend to be more volatile, but with the right management and long-term horizon, they can offer solid returns. HDFC’s approach of targeting high-potential, smaller companies is intriguing, but I’d love to know if the actual performance lives up to the promise.

A few questions for anyone familiar with the fund:

1. Returns Over the Long Term: How has this fund performed over the past 5–10 years? Have the returns been consistent, or have they varied significantly? I’m aiming for long-term growth, so steady performance would be ideal.
   
2. Expense Ratio vs. Value: HDFC Small Cap Fund has an actively managed portfolio, which usually means higher costs. For those invested in it, do you feel the expense ratio is justified based on the returns? Or do you find it comparable to other small-cap funds with a lower expense ratio?
   
3. Downside Risk and Stability: Small-cap funds can be risky, and I want to understand how well this fund holds up during market downturns. Does it mitigate losses effectively, or does it tend to follow the broader market’s highs and lows?
   

I’m interested in a high-growth small-cap option, but I’d also like a fund with some resilience in tough markets. For anyone who’s held this fund through different market phases, how has your experience been? Any advice or things to keep in mind?

Thanks for the insights—I’m eager to hear your thoughts on the HDFC Small Cap Fund!