[Mangalmishi00]

Hello everyone,

I’m exploring options for long-term investments and have been researching the HDFC Small Cap Fund. Small-cap funds are known for their potential to generate high returns over time, though I understand they come with added risks. The HDFC Small Cap Fund caught my attention due to its reputation and active management, but I’d love to hear from experienced investors who have used it for a while.

Here are a few points I’m curious about:

1. Performance in Volatile Markets: Small-cap funds tend to fluctuate a lot. For those who have been invested in this fund, how has it handled market downturns, especially in comparison to other small-cap funds? Is it resilient, or does it see sharp drops?
2. Fund Manager Strategy: I read that HDFC’s fund managers actively research and select high-potential small-cap companies. Do you feel that this hands-on approach has resulted in better performance, or does it mainly add to the expense ratio?
3. Sector and Stock Allocation: How diversified is the HDFC Small Cap Fund across sectors? Sometimes, small-cap funds tend to concentrate on certain high-growth sectors—does this fund maintain a balanced approach, or does it lean toward specific industries?

I’m planning to hold this fund for the next 7–10 years as part of a diversified portfolio. For those who have held it long-term, would you say it’s been a worthwhile addition? And if you’ve considered other small-cap funds, what made you stick with or switch to HDFC?

Looking forward to any insights or personal experiences—thanks in advance!

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