About SBI Small Cap Fund
SBI Smallcap Fund is an open-ended equity scheme primarily investing in the stocks of small-cap companies.
The investment objective of the scheme is to provide long term capital appreciation to the investors by making investments in a diversified portfolio of equity & equity-related securities of small-cap companies.
The Benchmark of the scheme is S&P BSE Small Cap Index TRI.
|Minimum Application Amount||Rs.5,000 & in multiples of Rs.1 thereafter|
|Minimum Additional Investment||Rs.1000 & in multiples of Rs.1 thereafter|
|Type||Minimum Amount||Minimum Installments|
|Weekly||Rs.1,000 & in multiples of Rs.1 thereafter||6|
|Monthly||Rs.1,000 & in multiples of Rs.1 thereafter||6|
|Rs.500 & in multiples of Rs.1 thereafter||12|
|Quarterly||Rs.1,500 & in multiples of Rs.1 thereafter||4|
|Semi-Annual||Rs.3,000 & in multiples of Rs.1 thereafter||4|
|Yearly||Rs.5,000 & in multiples of Rs.1 thereafter||4|
Entry Load: Nil
If units are redeemed or switched out within 1 year - 1%
If units are redeemed or switched out after 1 year - Nil
SBI Smallcap Fund is suitable for investors with a high-risk appetite and looking to invest for a period of 7 years & above.
As the fund predominantly invests in equity securities, Axis Bluechip Fund has the taxability of an equity mutual fund scheme. Following taxation is applicable:
- If the units are sold after 1 year, then the gains on investments are treated as Long Term Capital Gains (LTCG). LTCG of up to Rs 1 lacs in a financial year is tax-free and above that, it is taxed at the rate of 10% without the benefit of indexation.
- If the units are sold within 1 year, then the gains are treated as Short Term Capital Gains (STCG) and are taxed at the rate of 15%.
SBI Smallcap Fund’s Asset Allocation
Under normal conditions, the pattern of asset allocation is as follows:
|Assets||Minimum indicative allocation (% of total assets)||Maximum indicative allocation (% of total assets)||Risk Profile|
|Equity & Equity related securities of small-cap companies||65||100||High|
|Equity & Equity related securities of other companies||0||35||High|
|Money market instruments||0||20||Low|
|REITs & InVITs||0||10||Moderate to High|
Who should invest in SBI Small Cap Funds?
Small cap funds are those equity mutual funds that invest in equity & equity-related securities of the companies beyond the top 250 companies in terms of market capitalization.
These companies have small market shares, but aim to come out with innovative products which could disrupt the market through their qualitative offerings. These stocks carry the potential to become midcaps and later, large-caps by gaining market share over time.
Investments in SBI Bluechip Fund can be made by investors who want to invest in startups or small businesses having the potential to deliver good returns over longer periods. The small size of the underlying holdings makes investments in these funds relatively risky & more volatile as compared to investments in other equity fund categories.
Investors with high risk appetite looking to invest in equity funds for a long investment horizon could consider investments in this fund. The fund can be a good investment for a diversified equity portfolio.
Eligibility - Who can invest?
The following people are eligible to invest in this scheme:
- Indian Resident Adults (single holder or on a joint basis)
- Hindu Undivided Family
- Partnership entities
- Limited Liability Partnership units
- Minor through parent or a legal guardian
- Sole Proprietor
- Corporates, PSUs & others.
- Banks & Financial Institutions
- Religious & Charitable Trusts
- Defense & paramilitary units
- Foreign Portfolio Investors
- Pension/Provident/Gratuity Funds
- Trustee, AMCs or Sponsors
- Other schemes of Axis or other mutual funds
- Alternative Investment Funds
How to invest SBI Small Cap Fund?
You can invest in SBI Smallcap Fund through any AMFI distributor, AMC, banks, or third party platforms. If you need any help with your investments, you can reach out to our ZFunds Experts on Whatsapp - 7217746224.
Frequently Asked Questions About SBI Small Cap Fund Growth
Q. Has SBI Small Cap Fund Growth given good returns in the past ?
A. SBI Small Cap Fund Growth plan has given great results in the past few years. While the three year return for the scheme stands at 28.7 percent, the five year returns for the plan are 17.7 percent, as on 29th September 2022. Moreover, one year returns for SBI Small Cap Growth Fund are 12.4 percent. Hence, one can say that this mutual fund scheme by SBI mutual fund has performed brilliantly in the past few years.
Q. What is the entry and exit load for SBI Small Cap Fund Growth?
A. There is no entry load for investing in this MF scheme. However, there is an exit load. It is the fee that an asset management company or AMC charges investors at the time of redeeming their mutual fund units. In case you sell your SBI Small Cap Fund Growth units within one year of investing, then an exit load of one percent is applicable on the redemption amount. However, if you sell or switch out your MF units after the completion of 365 days from the date of allocation of such units, then no exit load is applicable.
Q. What is the expense ratio for SBI Small Cap Fund Growth Regular plan?
A. The SBI Small Cap Fund Regular Growth plan expense ratio is 1.7 percent as on 29th September 2022. It is the fee that the mutual fund company – SBI Mutual Fund in this case – charges investors for the expenses made towards the administration and management of the mutual fund scheme. For regular mutual fund schemes, the expense ratio typically ranges between 1.5 percent and 2.0 percent.
Q. What percent of total funds in SBI Small Cap Growth plan are invested in small cap ?
A. The fund invests around 65 percent of the overall funds in small cap stocks. The fund can invest the remaining 35 percent in large and mid-cap stocks, and/or debt/money market instruments.
Q. What are the top five holdings of SBI Small Cap Fund ?
A. Elgi Equipments LTD, Vedant Fashions LTD, Sheela Foam LTD, V-GUARD Industries LTD, and Fine Organic Industries LTD are the top holdings of SBI Small Cap Fund. Other holdings of SBI Small Cap Fund include Blue Star LTD, Carborundum Universal LTD, Esab India LTD, and Chalet Hotels LTD. Please note that whilst these are the current holdings, these can change at any time.
Q. What is the current SBI Small Cap Fund NAV?
A. The current SBI Small Cap Fund NAV, as on 29th September 2022, is INR 111.7, while the fund size is INR 14043.8 crores.
Q. I want to start an SIP in SBI Small Cap Growth Fund. What is the minimum amount I can start with ?
A. You can start an SBI Small Cap Growth Fund SIP with just INR 500 per month. You can also invest a lump sum of INR 5000 initially, with subsequent lump sum investments of just INR 1000.
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