Hdfc Small Cap Fund Vs Icici Small Cap Fund: Which One Is Better?

By Author: ankjhonson
Total Articles: 16
Comment this article

Small-cap funds are essential to the investment landscape, offering a unique combination of growth opportunities and investment challenges. These funds primarily focus on investing in companies with smaller market capitalizations, often referred to as "small-cap" companies.
What are Small Cap Funds?
Small-cap funds invest in stocks of companies that fall within a specific range of market capitalization, typically defined as those with a value between $300 million and $2 billion. These companies often represent the more entrepreneurial side of the economy and include emerging or niche players in various industries.
HDFC Small Cap Fund vs. ICICI Small Cap Fund
In the Indian mutual fund market, two prominent small-cap funds have garnered attention and investment – HDFC Small Cap Fund and ICICI Small Cap Fund. Both these funds seek to harness the growth potential of small-cap companies but have unique characteristics and performance histories.
 
Whether you are a seasoned investor looking ...
... to expand your portfolio or a newcomer to the investment world, understanding the differences and similarities between these two funds is crucial for investment planning. Read on to find an in-depth comparison that simplifies the complex world of small-cap investing.
HDFC Small Cap Fund
Objective: HDFC Small Cap Fund aims to generate long-term capital appreciation by investing mainly in small-cap companies.
Key Features

Inception date: October 1996
Performance Metrics: 1-year returns: 35.58%, 3-year returns: 39.79%, 5-year returns: 17.45%
Portfolio Composition: Top sectors include chemicals (13.2%), auto ancillary (9.6%), textiles (6.3%), and pharmaceuticals (6.2%)
Management Team: Managed by Vinit Sambre with over 20 years of experience
Risk Profile: High risk, standard deviation: 38.8%
Charges and Fees: Expense ratio of 2.5%

Recent Performance and Reviews: The fund has been performing well and received positive reviews from investors.
ICICI Small Cap Fund
Objective: Similar to HDFC Small Cap Fund, ICICI aims to provide long-term capital growth by investing in small-cap companies.
Key Features

Inception date: April 2017
Performance Metrics: 1-year returns: 34.97%, 3-year returns: 16.39%, 5-year returns: 12.74%
Portfolio Composition: Top sectors include chemicals (11.4%), auto ancillary (8.5%), textiles (7.2%), and pharmaceuticals (6.6%)
Management Team: Managed by Siddhartha Khemka with over 15 years of experience
Risk Profile: High risk, standard deviation: 38.5%
Charges and Fees: Expense ratio of 2.5%

 
Recent Performance and Reviews: Despite a shorter track record, the fund has been doing well and has positive customer feedback.
Comparison

Age and Performance: HDFC has a longer history and has consistently outperformed benchmark indices, while ICICI has a shorter history but solid recent performance.
Portfolio Composition: Both funds have similar sector allocations but slight differences in concentration.
Risk and Returns: Both funds have a high-risk profile with differences in 1-year, 3-year, and 5-year returns.
Management and Charges: Both funds have experienced managers and similar expense ratios.

Conclusion
HDFC Small Cap Fund and ICICI Small Cap Fund are both solid investment options in the small-cap category. While HDFC offers a proven long-term track record, ICICI shows promising recent performance. Your choice between these funds should align with your investment goals, risk tolerance, and preference for historical success or recent growth.
 
It is always wise to consult with a financial advisor and do your research before investing in any fund, as investing in small-cap funds involves significant risks, and past performance is not indicative of future results.