HDFCSML250 Share Price: HDFC Nifty Small Cap 250 Index Fund was launched on 21st February 2023. This is because the HDFC Nifty Small Cap 250 Index Fund is an innovation aimed at tracking the Nifty Small Cap 250 Index. It comprises 250 select companies from different sectors, thus spreading its risks. Retail investors are also able to get involved in this kind of investment without having to buy individual stocks and managing them.
The ETF has done exceptionally well considering that it has been around for merely over six months since its inception; it boasts a return of nearly 48%. In particular, it has aroused the interest of many people who trade in equities as a viable option for their portfolios. The structure of the ETF, which focuses on small-cap stocks, aims at balancing risk and return; hence, it can provide huge potential upside with less vulnerability than single small cap stocks.
Why HDFC Nifty Smallcap 250 Index Fund?
Aligned Returns with Nifty Smallcap 250 TRI: The objective of this Index Fund is to mimic the behaviour of the Nifty Smallcap 250 Total Return Index (TRI), thereby enabling investors to earn returns alike the index which reflects the conduct of small-cap firms in India.
Diversified Exposure to Small Cap Universe: Through HDFC Nifty Smallcap 250 Index Fund, one can gain diversified exposure into India’s small cap universe. One single investment in this Index Fund provides an opportunity to benefit from numerous small-cap companies’ performances.
Low Expenses: Lower costs ensure that investing in Nifty Smallcap 250 Index fund is affordable for those wanting to earn index linked returns.
Investment Made Easy: With HDFC Nifty Smallcap 250 index fund there is an uncomplicated alternative for long-term wealth generation. Anyone looking for gaining exposure to potentially expanding small scale industries within India may want to consider this Index Fund.
HDFCSML250 Share Price: Performance and Market Sentiment
An incredible bullish kick-off characterised this Index Fund from its very inception. 5% was gained within a month whilst 32% was obtained at about six months. However, the Index Fund has remained robust amidst certain periods of consolidation indicating that there’s some market confidence in its constituent companies.
The increase in volumes has made the Index Fund more popular with investors. There has thus been a steady increase in volumes since listing, which exhibits increased interest. On day one alone, trading volumes were rather low at approximately 2500 shares rose exponentially to 12000 within days and kept growing into lakhs thereafter. This is an indicator of good performance considering that liquidity and volume are fundamental to any successful Index Fund.
In addition to this, it is not categorised as a highly speculative investment but rather a medium risk option for those who want to diversify their portfolios. Index Fund’s have an inherent advantage over other forms of investing due to the built-in diversification feature which reduces overall risks and works particularly well during periods of market declines allowing an average cost on investments made by investors.
| Performance | 1 Year | Since Inception |
| Scheme Returns (%) | 57.65% | 68.85% |
| Benchmark Returns (%)# | 58.91% | 70.73% |
| Additional Benchmark Returns (%)## | 27.76% | 33.02% |
| Value of Investment of Rs 10,000 | ||
| Scheme (Rs.) | 15,784.39 | 19,546.60 |
| Benchmark (Rs.)# | 15,911.11 | 19,825.91 |
| Additional Benchmark (Rs.)## | 12,784.13 | 14,406.47 |
HDFCSML250 Share Price: Investment Strategy- Disciplined and Consistent
Investing in an Index Fund, similar to any other forms of an investment, calls for some level of discipline. One approach I have found to be beneficial is waiting patiently and investing staggered amounts. Whenever the market dips, I see it as an opportunity to further invest and reduce the average price of my holdings. The idea is to gradually build up a position over time – allowing the Index Fund to rise while guarding against sudden market fluctuations.
Another principle that I adhere to is that one should lock-in profits when the market goes my way. Pre-defined targets such as a gain of 5-6% allows me to take profit then re-enter on the next business day. This method allows for an active portfolio with minimise risk of losses.
The HDFC Nifty Smallcap 250 Index Fund offers additional advantages.
Diversification: The Nifty Smallcap 250 Index has a variety of small-cap stocks from different economic sectors that are spread out which helps to manage risks and this can lead to higher risk-adjusted returns.
Growth Potential: Usually small-cap stocks belong to a category of companies that are just starting up their operations and can therefore have incredibly high growth rates hence the ability to realise lucrative risk adjusted returns if they are held for more extended periods.
Who should buy the HDFC Nifty Smallcap 250 Index Fund?
There is a suitable index fund for investors interested in the small cap segment of companies known as the HDFC Nifty Smallcap 250 Index Fund. This product may be applicable mainly to those who:
- Want diversification other than large or midcap organisations
- Prefer inexpensive investment alternatives
- Aspire to make money in the long term.
Notwithstanding this fact, investments categorised as small-cap stocks which include those found within this fund tend to possess greater volatility levels and risks than their larger counterparts.
HDFCSML250 Share Price: Fund Managers
Nirman S. Morakhia
Nirman S. Morakhia serves as a Fund Manager and Equities Dealer.
The HDFC Nifty500 Multicap 50:25:25 Index Fund, HDFC NIFTY100 Low Volatility 30 Index Fund, HDFC NIFTY Realty Index Fund, HDFC NIFTY200 Momentum 30 Index Fund, HDFC BSE 500 Index Fund, HDFC NIFTY Smallcap 250 Index Fund, HDFC NIFTY Midcap 150 Index Fund, HDFC NIFTY Smallcap 250 ETF, HDFC NIFTY Midcap 150 ETF, and the HDFC BSE 500 ETF are among the various schemes he oversees in addition to his current position.
Arun Agarwal
Arun Agarwal is a Senior Fund Manager with over 23 years of diverse experience in equity, debt, and derivative dealing, fund management, internal audit, and treasury operations.
The HDFC Nifty500 Multicap 50:25:25 Index Fund, HDFC NIFTY100 Low Volatility 30 Index Fund, HDFC NIFTY Realty Index Fund, HDFC NIFTY200 Momentum 30 Index Fund, HDFC NIFTY PSU Bank ETF, HDFC BSE 500 Index Fund, HDFC NIFTY Smallcap 250 Index Fund, HDFC NIFTY Midcap 150 Index Fund, HDFC NIFTY Smallcap 250 ETF, and HDFC NIFTY Midcap 150 ETF are just a few of the schemes he is responsible for managing.
What is the HDFC Nifty Smallcap 250 Index Fund’s appropriate investment time horizon?
Those with a three-year time horizon and above can consider investing in the HDFC Nifty Smallcap 250 Index Fund. current constituents of NIFTY Smallcap 250 Index (TRI) click here
HDFCSML250 Share Price: Portfolio Overview
As of March 31st, 2024, here are the top 10 holdings in the portfolio:
- Crompton Greaves Consumer Electricals Ltd. – 1.19%
- Multi Commodity Exchange of India Ltd. – 1.18%
- Cyient Ltd. – 1.16%
- Blue Star Ltd. – 1.14%
- Angel One Ltd. – 1.08%
- Central Depository Services (India) Ltd. – 1.05%
- IDFC Ltd. – 1.01%
- Glenmark Pharmaceuticals Ltd. – 0.99%
- RBL Bank Ltd. – 0.99%
- Karur Vysya Bank Ltd. – 0.98%
These businesses, which exhibit a varied mix across multiple sectors, stand in for the portfolio’s major investments.
HDFCSML250 Share Price: Sectoral Breakdown
The HDFC Nifty Small Cap 250 ETF covers a wide range of sectors giving a good exposure into various industries. One of its best performing sectors is pharma which makes up 6.07% of the total holdings. Another notable sector is the Exchange and Data Platform sector at 4.60%.
This is important because it reduces risk from a single company or sector that is not doing well. For instance, if any specific stock within the ETF declines in performance then the earnings of other stocks in his portfolio will help in cushioning him against it.
Future Forecast for the HDFC Nifty Smallcap 250 Index Fund
The Small-Cap Segment has Continued Growth
In the near future, the HDFC Nifty Smallcap 250 Index Fund is lined up to respectably retain its impressive performance owing to the economic growth of India and increasing trading done by retail investors in the stock market. Most of these small-cap stocks are considered as hotbeds for new ideas and are able to respond quickly to changes happening within their respective economies. There may be an increase in small-cap stock prices because of a renewed emphasis on building infrastructure, digitalization and production in India which would benefit this fund directly.
Market Sentiment and Economic Indicators
Expectations about the market sentiment for small cap stocks will likely still remain upbeat especially with many investors looking for alternatives from large caps only. Investors seeking investments with well-rounded exposure towards highly growth operative areas like pharmaceuticals or financial services can expect HDFC Nifty Smallcap 250 Index Fund to provide them with sufficient diversification across sectors. In addition, factors such as GDP growth rate, corporate profitability levels as well as government policies favouring small-and medium-sized enterprises (SMEs) could help sustain interest in exchange traded funds (ETFs).
Risks and Volatility
The Index Fund has had some bounce back but it is important to note that investing in small caps always has a degree of inherent price change. Changes in the global economy such as inflationary pressures, interest rate hikes and international disputes may affect market performance. A short-term market correction can happen anytime especially in small cap space this is why an investor needs to brace him/herself for that. However, since the Index Fund is a diversified portfolio, it may insulate some of these risks making it more stable than owning individual small-cap stocks.
Long-Term Investment Potential
For long-term investors with a horizon of around three years or more the HDFC Nifty Smallcap 250 Index Fund is quite appropriate. In the long run, small-cap stocks usually do better than big companies particularly during ageing periods of expanded economies. With India’s economic growth trajectory, the Index Fund will likely make magic by capitalising on well-positioned small-cap firms that are likely to gain from local or international current market projections.
Portfolio Strategy and Diversification
Buyers ought to think about an orderly means of investing like staggered investments so that they may be able take advantage of market falls while minimising further expenses that occur from one’s possessions. It would be possible for this method to lessen the effect of fluctuations and improve profits with time. Furthermore, diversifying one’s portfolio by including several other asset classes apart from HDFC Nifty Smallcap 250 Index Fund will not only lower their level of risk but also make wealth creation more equitable.
Final Thoughts
The HDFC Nifty Smallcap 250 Index Fund is a unique opportunity for retail investors who want to participate in the growth of small-cap companies while benefiting from the diversification and reduced risk provided by an Index Fund. All small-cap stocks are famously known for their volatility but this Index Fund has been able to deliver solid returns in a relatively short period of time.
It is vital to take a disciplined approach to such investments. The long run trick is on, averaging out during market corrections regularly. Still avoiding any overexposure on one single stock is advisable, likewise keep central therefore big results can be achieved with little pressure like for instance if you decide on direct investing in small cap stocks.
As always, though Index Fund may offer a diversified manner of entering the market they still come with risks because there is no investment which lacks volatility completely. High chances of taking advantage of India’s increasing interest in smaller companies without being oblivious about its potential dangers are provided by HDFC Nifty Smallcap 250 Index Fund for investors who are aware of them.
FAQ: HDFC Nifty Smallcap 250 Index Fund
What is the HDFC Nifty Smallcap 250 Index Fund?
The HDFC Nifty Smallcap 250 Index Fund has been created as a tracker for the Nifty Smallcap 250 Index and hence it invests at least 65% of a fund’s assets in small-cap stocks. It replicates the performance of its benchmark index because it is a passively managed fund, thus giving investors access to a diverse small-cap stocks portfolio across different sectors.
Investing in the HDFC Nifty Smallcap 250 Index Fund: How can I do it?
You can buy this Index Fund using the HDFC Mutual Fund website or by using platforms such as MF Central and MF Utility. You can even speak to a mutual fund dealer, if that is what you would like to do instead of buying it over the Web.
What is the current NAV of the HDFC Nifty Smallcap 250 Index Fund?
As of August 18, 2024, the NAV of the HDFC Nifty Smallcap 250 Index Fund is ₹174.5675.
What is the AUM of the HDFC Nifty Smallcap 250 Index Fund?
The Assets Under Management (AUM) of the Index fund are ₹280.24 crore as of July 31, 2024.
What is the risk level of the HDFC Nifty Smallcap 250 Index Fund?
This Index Fund is rated with a “Very High” riskometer level, indicating against fluctuations and instability accompanied by smaller companies as well as volatile assets.
What has been the performance of the HDFC Nifty Smallcap 250 Index Fund?
Starting from the day it was launched, the Index Fund has provided impressive returns, growing by approximately 17.26% over the last six months. This ETF has performed well and has remained stable in a volatile market; it is still able to attract investors’ attention.
Who should consider investing in the HDFC Nifty Smallcap 250 Index Fund?
For the Indian investor who likes small-cap stocks and doesn’t mind taking risks in hopes of earning higher returns, this is the ideal ETF. It targets long term investors with a minimum investment horizon of three years who want to diversify their portfolios beyond large and medium sized companies.
What are the benefits of the HDFC Nifty Smallcap 250 Index Fund?
Index Funds are designed for diversified exposure to a wide range of small-cap firms, which may generally help to mitigate risks associated with individual stock investments. Its design seeks to balance risk and reward, potentially gaining from the rise of the small-cap industry in India.
What is the investment strategy for the HDFC Nifty Smallcap 250 Index Fund?
According to expert advice, a methodical investment attitude should involve progressive investments that will enable you to spread the costs and profit when the markets are accommodating. Besides this, noting that it’s better to diversify your portfolio can make sure you manage risk and boost your returns too.
Disclaimer: The information in this “Stock Profile” blog post is for informational purposes only. It is not financial advice. Always consult a qualified expert before making investment decisions.
