Investing in SBI Small Cap Fund
It cannot be denied that investing in mutual funds can also be risky for investors due to the risks associated with the market.
However, experience over the years shows that some funds tend to outperform others, allowing investor wealth to grow at a faster rate.
One such fund is from SBI Mutual Fund House. This is SBI Small Cap Fund. It celebrated its anniversary last year (09-09-2022).
As per the data from the AMFI website, SBI Small Cap Fund’s Regular Plan has given an impressive return of 26.28% in last 10 years (as on 06-09-2022).
A Fund of Rs 29 Lakh
The Mutual Fund SP calculator shows that if an investor had started a monthly SIP of Rs 5000 in the Regular Plan of this Equity Small Cap Fund 10 years ago, he would have accumulated around Rs 29 lakh by now.
Because this fund has given a 26.28% annual return in 10 years. A monthly investment of Rs 5,000 yields Rs 166 per day.
10 Times the Lump Sum Amount
If an investor had invested Rs 1 lakh in this fund 10 years ago, his wealth could have crossed Rs 10 lakh by now.
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.
Benefit of 3 Years
The mutual fund calculator shows that a monthly SIP of Rs 5,000 in the direct plan of this small-cap fund, launched three years ago, would have crossed Rs 3 lakh by now.
Similarly, an advance investment of Rs 1 lakh in this fund would grow to around Rs 1.4 lakh in three years.
How Much Return From the Beginning
The Direct Plan of SBI Small Cap Fund has given annualised returns of 26.76% since its inception. As per the data available on AMFI website, the regular plan of the fund has given a 20.65% return since inception.
21 Lakhs of Rs 1 Lakh
Mutual fund calculators show that a monthly SIP of Rs 5000 in the direct plan of this small-cap fund could have gone up to around Rs 69 lakh since inception.
Similarly, an investment of Rs 1 lakh in this fund could have grown to over Rs 21 lakh in 13 years.
When Was the Fund Launch
SBI Small Cap Fund is a 13-year-old fund that was established on September 9, 2009. R Srinivasan has been its manager since November 2013.
It is rated 5 stars by Value Research. The fund tracks the S&P BSE 250 SmallCap TRI. As on August 31, 2022, the AUM of SBI Small Cap Fund was Rs 14044.46 crore.
SBI Small Cap Fund invests in a diversified basket of equity shares of small-cap companies. ELGI Equipments, Vedanta Fashion, Sheela Foam, V-Guard, Fine Organics, Blue Star, Carborundum Universal, and Lemon Tree Hotels are some of the prominent small-cap companies in which this Mutual Fund has invested.
