SBI Mutual Fund Small Cap Scheme: Powerhouse of High Return : SBI Small Cap Fund has given huge earning opportunities to its investors through investments in small companies in the last 15 years. This scheme of the country’s big fund house (SBI Mutual Fund) has been especially good for those who are investing for the long term. This fund has given excellent returns to those investing through both Systematic Investment Plan (SIP) and Lumpsum methods. This scheme has been quite successful in terms of achieving capital growth by investing in Small Cap Stocks for long term.
Investment Strategy of SBI Small Cap Fund
SBI Small Cap Fund aims to achieve long-term capital growth by investing in small cap stocks. The fund invests at least 65% of its portfolio in small cap stocks to take full advantage of their growth potential. Along with this, this fund can also invest up to 35% of its corpus in mid cap and large cap companies to create balance. This scheme, which was started on September 9, 2009, has given excellent returns since its launch.
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Past Performance of SBI Small Cap Fund (CAGR)
– 1 year return: 39.8%
– 3 year return: 23.46%
– 5 year return: 29.25%
– 15-year return: 21.5% (benchmark return: 13.74%)
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Return on Lumpsum Investment
If you had invested Rs 1,00,000 in SBI Small Cap Fund 15 years ago, its value today would have been Rs 18,81,740, which shows a growth of 18.8 times on the invested amount.
Value of investment of Rs 1 lakh
– After 1 year: Rs 1,40,050
– After 3 years: Rs 1,88,300
– After 5 years: Rs 3,61,150 (about 3.6 times growth)
Strong returns on SIP
If you had invested in this fund through SIP of Rs 5,000 every month, then the total investment in 15 years would have been Rs 9 lakh. With 23.4% annualized return on this SIP investment, your capital would have grown to Rs 64,55,581, which is 7.17 times your total investment.
SIP return calculation
- Monthly SIP: Rs 5,000
- Investment period: 15 years
- Total amount invested in 15 years: Rs 9 lakh
- Annulized return on SIP in 15 years: 23.4%
- Fund value after 15 years (current) : Rs 64,55,581 (Rs 64.55 lakh)
(Source : Value Research SIP Calculator)
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Special features of SBI Small Cap Fund
– Fund Type: Open-ended equity scheme that invests primarily in small cap stocks.
– Assets Under Management (AUM): Rs 34,229.11 crore (as on September 30, 2024)
– Risk Level: Very High Risk
– Start date: September 9, 2009
– Benchmark: BSE 250 Small Cap Index TRI
– Minimum investment: Rs 500 for SIP
asset allocation
– Small Cap Stocks: 85.71%
– Mid Cap Stocks: 4.76%
– Cash and other assets: 7.25%
– Derivatives: 2.28%
Exit load and expense ratio
– Exit Load: 1% on withdrawal within 1 year, no charges after 1 year.
– Regular Plan Expense Ratio: 1.56%
– Direct Plan Expense Ratio: 0.66%
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Who should invest in SBI Small Cap Fund
SBI Small Cap Fund with its strong performance potential has given better returns to investors. Whether you are investing in lump sum or through SIP, this fund has grown investors’ capital manifold in 15 years. However, the past performance of a mutual fund cannot be considered as a guarantee of getting similar returns in the future. In any case, there is more risk associated with investing in small cap stocks, hence this fund is for those investors who have the ability to take more risk and want to achieve capital growth by investing for a long term. Investors should consult their financial advisor before taking any decision in this regard.