SBI Small Cap Mutual Fund: While there is no denying the fact that mutual fund investments could be risky for investors due to inherent market risks, experience over the years suggests that some funds simply outperform others, increasing the investor’s wealth at an unexpected pace.
One such fund is the SBI Small Cap fund from the house of SBI Mutual Fund. It is going to celebrate its anniversary on Friday (09-09-2022). According to data on the AMFI website at the time of writing, the SBI Small Cap fund’s regular plan has given a stellar return of 26.28% in the last 10 years (as of 06-09-2022).
The mutual fund SP calculator shows if an investor had started a monthly SIP of Rs 5000 in this equity small-cap fund’s regular plan 10 years back, he/she would have accumulated approximately Rs 29 lakh by now as the fund has given an annualised return of 26.28% in 10 years.
If an investor had invested Rs 1 lakh upfront in the fund 10 years ago then his wealth could have grown to over Rs 10 lakh by now.
SBI Small Cap Fund 3-Year Returns
In the last three years, SBI Small Cap Fund has given an annualised return of 32.89% in the Regular Scheme and 34.37% in the Direct Plan.
The mutual fund calculators show that a monthly SIP of Rs 5000 in this small-cap fund’s direct plan started three years ago would have grown up to over Rs 3 lakh by now. Similarly, an upfront investment of Rs 1 lakh in this fund would have grown to around Rs 1.4 lakh in three years.
SBI Small Cap Fund Returns Since Inception
Since its inception, the direct plan of the SBI Small Cap Fund has given an annualised return of 26.76%. The fund’s Regular plan has returned 20.65% since inception, according to data on the AMFI website.
The mutual fund calculators show that a monthly SIP of Rs 5000 in this small-cap fund’s direct plan started since inception could have grown up to around Rs 69 lakh by now. Similarly, an upfront investment of Rs 1 lakh in this fund could have grown to over Rs 21 lakh in 13 years.
Launched on 09, September 2009, SBI Small Cap Fund has been managed by R Srinivasan since November 2013. It has a five-star rating on Value Research. The fund tracks the S&P BSE 250 SmallCap TRI.
This Small Cap fund falls in the ‘Very High Risk’ zone. As of 31 August 2022, SBI Small Cap Fund had an AUM of Rs 14044.46 crore. The SBI Small Cap fund invests in a diversified basket of equity stocks of small-cap companies. ELGI Equipments, Vedant Fashions, Sheela Foam, V-Guard, Fine Organics, Blue Star, Carborundum Universal, and Lemon Tree Hotels are some of the major small-cap companies in which this mutual fund has investments.
(Disclaimer: There is no guarantee that a fund can repeat its past performance in future. Small Cap funds are considered very risky. The above article is for information purposes only. Please consult your financial advisor before making any investment decision. Investing without proper financial advice and research in mutual funds could lead to heavy losses)