SBI Mutual Fund’s SBI Small Cap Fund Direct-Growth is an Equity mutual fund scheme managed by R. Srinivasan, introduced on September 9, 2009. This fund aims to provide investors with opportunities for long-term capital appreciation by primarily investing in small-cap equity securities. It requires a minimum SIP investment of Rs. 500.
The SBI Small Cap Fund allocates at least 65% of its assets to small-cap equities. It also has the flexibility to invest up to 35% of its assets in other stocks, including those from big and mid-cap firms, as well as debt and money market instruments. The fund follows a blend of growth and value investing styles, utilizing a bottom-up stock selection approach.
Are you wondering who could benefit from investing in the SBI Small Cap Fund Direct-Growth? Small-cap funds are ideal for those who are comfortable with high-risk investments and are looking to diversify their portfolios. These funds are known for yielding great returns, especially in bearish markets. It’s worth noting, however, that during market downturns, small-cap funds may be more vulnerable. Allocating a portion of your investment portfolio to top small-cap mutual funds could potentially be advantageous.
Key Features of SBI Small Cap Fund Direct-Growth
High Growth Potential: Small-cap companies have the potential to grow rapidly, leading to higher returns for investors.
Diversification: The fund’s portfolio is diversified across various small-cap stock holdings, reducing the risk of concentration.
Professional Management: The fund is managed by experienced fund managers who make informed investment decisions.
The SBI Small Cap Fund Direct-Growth is specifically tailored for investors with a minimum investment horizon of 5 to 7 years. Given the nature of the asset class, be prepared for short-term volatility in your investments. The fund’s performance is compared to the S&P BSE 250 SmallCap Index TR INR.
Investing in the SBI Small Cap Fund Direct-Growth can provide above-average returns, with a track record of 5.5% over the last year, 28.8% for the past three years, 12.9% over the past five years, and 25.6% since inception. This fund offers diversification and potential high-value portfolio growth, but comes with a fair amount of risk. It is recommended to invest with a long-term goal in mind, such as retirement or college tuition, for maximum benefit. Units bought before January 31, 2018 are exempt from long-term capital gains tax if redeemed after April 1, 2018.
How to Invest in SBI Small Cap Fund Direct-Growth?
Login to your 5paisa account and go to the Mutual Funds section
Search for SBI Small Cap Fund – Direct Growth in the search box
Click on “Start SIP” for SIP or “One-time” for lumpsum investment
Click on “Invest Now” to proceed with the investment
FAQ
What is SBI Small Cap Fund Direct-Growth?
SBI Small Cap Fund Direct-Growth is a mutual fund scheme offered by SBI Mutual Fund that primarily invests in small-cap companies with the potential for high growth. The “Direct-Growth” option means that investors can directly invest in the fund without paying any commissions to intermediaries, potentially increasing their returns over time.
How does SBI Small Cap Fund Direct-Growth differ from other mutual funds?
Unlike large-cap or mid-cap funds that invest in companies with larger market capitalization, small-cap funds like SBI Small Cap Fund Direct-Growth focus on smaller companies with high growth potential. This can mean higher returns but also higher risk, as small-cap companies are more volatile.
Is SBI Small Cap Fund Direct-Growth suitable for all investors?
While SBI Small Cap Fund Direct-Growth can offer high returns, it may not be suitable for all investors. The higher risk associated with small-cap companies means that this fund is better suited for investors with a higher risk tolerance and a long-term investment horizon.
What are the advantages of investing in SBI Small Cap Fund Direct-Growth?
Investing in SBI Small Cap Fund Direct-Growth can offer several advantages, including the potential for high returns over the long term, diversification of your investment portfolio, and the ability to invest directly without paying commissions to intermediaries. Additionally, small-cap companies can sometimes outperform their larger counterparts, leading to potentially higher returns.
How can I invest in SBI Small Cap Fund Direct-Growth?
Investing in SBI Small Cap Fund Direct-Growth is easy and can be done online through SBI Mutual Fund’s website or through authorized distributors. You can choose the Direct-Growth option to invest without intermediary commissions, potentially increasing your overall returns.
What is the minimum investment required for SBI Small Cap Fund Direct-Growth?
The minimum investment amount for SBI Small Cap Fund Direct-Growth may vary, so it’s best to check with SBI Mutual Fund or your authorized distributor for the most up-to-date information. Typically, mutual fund investments have a minimum investment amount to get started.