SBI Small and Midcap Fund: A true-blue small-cap outperformer

ET Wealth collaborates with Value Research to analyse top mutual funds.

We examine the key fundamentals of the fund, its portfolio and performance to help you make an informed investment decision.

SBI Small and Midcap Fund

How has the fund performed?
With a 7-year return of 20.89%, the fund has significantly outperformed both the category average (17.56%) and the benchmark return (7.02%).

Growth of Rs 10,000 vis-a-vis category and benchmark


Annualised performance (%)
The fund has comfortably outperformed over 3- and 5-year time periods.


Yearly performance (%)
The fund had a muted performance last year, after clocking stellar returns previously.

BASIC FACTS
Date of Launch 9 Sep 2009
Category Equity Type Small Cap
Average AUM
Rs 641.74 cr
Benchmark S&P BSE Small Cap Index

WHAT IT COSTS
NAVs*
Growth option Rs 39.24
Dividend option Rs 29.52
Minimum investment Rs 5,000
Minimum SIP amount Rs 500
Expense Ratio^ (%) 2.65
Exit load 1% for redemption within 365 days
*As on 28 Feb 2017
^As on 30 Sep 2016

Fund Manager R. Srinivasan
Tenure: 3 Years and 3 months
Education: MCom, MFM

Where does the fund invest?







How risky is it?
The fund’s risk-reward profile is superior to most of its peers.



All data on this page as on 31 Jan 2017, unless specified. Source: Value Research

Should you buy?
This is a pure-play small cap fund that takes aggressive exposure to the segment—much higher than many of its peers in the same category. With no large-cap exposure, it remains true to its label.

The fund manager takes an aggressive stance by running a tight portfolio—currently around 22 stocks—preferring concentrated exposure in his bets. This strategy requires astute stock selection.

While the inherent risk is high, a strict focus on sustainable competitive advantages, capital efficiency, management quality besides valuations has ensured a better risk-reward profile than many of its peers.

The fund has stopped accepting fresh inflows given the higher liquidity risk in this heated segment. Existing investors may continue with the fund given its proven track record.