Comprehensive Guide to MUTF_IN: SBI_Smal_Cap_MY8974 – Performance, Investment Strategy, and Analysis

The SBI Small Cap Fund (MUTF_IN: SBI_Smal_Cap_MY8974) is one of India’s most sought-after mutual funds, offering investors an opportunity to tap into the growth potential of small-cap companies. This comprehensive guide dives into the fund’s performance, strategy, risk profile, advantages, and overall analysis to help investors understand whether this fund aligns with their financial goals.

What Is SBI Small Cap Fund (MUTF_IN: SBI_Smal_Cap_MY8974)?

The SBI Small Cap Fund (MUTF_IN: SBI_Smal_Cap_MY8974) is a small-cap equity mutual fund managed by SBI Mutual Fund, one of the largest asset management companies in India. This fund focuses on investing in small-cap companies that exhibit high growth potential but come with a degree of higher market volatility. As a small-cap equity fund, it aims to generate long-term capital appreciation through investments in a diversified portfolio of small and emerging companies.

Quick Bio of the Fund

• Fund Name: SBI Small Cap Fund
• Ticker: MUTF_IN: SBI_Smal_Cap_MY8974
• Launch Date: September 2009
• Fund Manager: R. Srinivasan
• Investment Strategy: Small-cap focused, bottom-up stock-picking approach
• Assets Under Management (AUM): Over ₹15,000 crore
• Expense Ratio: 0.80% – 2.00% (depending on the plan)
• Benchmark Index: S&P BSE Small Cap Index

This fund has grown in popularity due to its ability to identify high-potential small-cap companies and generate superior returns compared to the benchmark.

Key Features of SBI Small Cap Fund (MUTF_IN: SBI_Smal_Cap_MY8974)

1. Investment Objective

The primary objective of MUTF_IN: SBI_Smal_Cap_MY8974 is to achieve long-term capital growth by investing predominantly in small-cap companies across various sectors. These companies often possess significant potential for growth, albeit with higher risk compared to large-cap counterparts. The fund seeks to create wealth by targeting under-researched companies that have yet to reach their full market potential.

2. Investment Strategy

MUTF_IN: SBI_Smal_Cap_MY8974 follows a bottom-up stock-picking strategy that focuses on identifying companies with sound business models, strong fundamentals, and excellent growth prospects. The fund manager targets small-cap stocks, which are companies with relatively smaller market capitalization, and focuses on companies that are often overlooked by larger institutional investors.

Typically, the fund invests between 65% and 95% of its assets in small-cap stocks, while maintaining a small portion in mid-cap companies and fixed income instruments for liquidity purposes.

3. Performance Overview

The SBI Small Cap Fund (MUTF_IN: SBI_Smal_Cap_MY8974) has delivered strong returns over various time periods, consistently outperforming its benchmark index (S&P BSE Small Cap Index). Its performance can be attributed to the fund manager’s ability to select high-growth small-cap stocks with strong fundamentals and future potential.

• One-Year Return: Approximately 25%
• Three-Year Annualized Return: Around 30%
• Five-Year Annualized Return: 23%
• Since Inception: Over 18% annualized

These returns highlight the potential for wealth creation through small-cap investments, but investors should remain cautious of market volatility.

4. Fund Manager’s Expertise

R. Srinivasan, the fund manager of MUTF_IN: SBI_Smal_Cap_MY8974, plays a crucial role in its success. Srinivasan has a keen eye for identifying emerging companies with significant growth potential and focuses on ensuring that the fund’s portfolio is diversified and well-positioned for long-term growth. His investment philosophy emphasizes corporate governance, strong financials, and long-term value creation, which has helped the fund outperform many of its peers.

Advantages of Investing in MUTF_IN: SBI_Smal_Cap_MY8974

1. High Growth Potential

One of the primary benefits of investing in MUTF_IN: SBI_Smal_Cap_MY8974 is the opportunity to gain exposure to small-cap companies that have higher growth potential than larger companies. Small-cap companies often have significant room for expansion, making this fund an attractive option for investors seeking capital appreciation.

2. Diversification

The fund’s portfolio is well-diversified across sectors and industries, which helps mitigate some of the risks associated with small-cap investments. This diversification enables the fund to reduce exposure to specific sector downturns and enhance long-term performance.

3. Strong Fund Management

The expertise of fund manager R. Srinivasan is a key advantage for MUTF_IN: SBI_Smal_Cap_MY8974 investors. With his experience and sound investment strategy, the fund is able to navigate market challenges and deliver superior returns over time.

4. Historical Outperformance

The fund has consistently outperformed its benchmark index, delivering superior returns for investors. This track record of outperformance has made it one of the most popular small-cap mutual funds in India.

Risks Associated with MUTF_IN: SBI_Smal_Cap_MY8974

1. High Volatility

Small-cap stocks are known for their high volatility, and the MUTF_IN: SBI_Smal_Cap_MY8974 fund is no exception. Market sentiment, economic conditions, and liquidity constraints can lead to significant price fluctuations in the short term.

2. Liquidity Risk

Small-cap stocks are often less liquid than their large-cap counterparts. During times of market stress, the liquidity of these stocks may dry up, making it more difficult for the fund to exit positions without affecting prices.

3. Market Risk

The performance of MUTF_IN: SBI_Smal_Cap_MY8974 is subject to broader market trends. Economic downturns or unfavorable market conditions can impact the fund’s performance, especially in the case of small-cap companies.

Who Should Invest in MUTF_IN: SBI_Smal_Cap_MY8974?

The SBI Small Cap Fund (MUTF_IN: SBI_Smal_Cap_MY8974) is best suited for investors who:

• Are comfortable with higher risk and volatility
• Seek diversification in their portfolio with exposure to small-cap stocks
• Are looking for potential high returns in the long run

This fund is ideal for aggressive investors who are willing to take on higher risks for the possibility of superior returns.

Table: Key Information About MUTF_IN: SBI_Smal_Cap_MY8974

FAQs About MUTF_IN: SBI_Smal_Cap_MY8974

1. What is MUTF_IN: SBI_Smal_Cap_MY8974?

The SBI Small Cap Fund (MUTF_IN: SBI_Smal_Cap_MY8974) is a small-cap equity mutual fund that invests in small-cap companies with high growth potential. It is managed by SBI Mutual Fund, one of the leading asset management companies in India.

2. Is MUTF_IN: SBI_Smal_Cap_MY8974 a good investment?

The SBI Small Cap Fund (MUTF_IN: SBI_Smal_Cap_MY8974) has historically delivered superior returns compared to its benchmark, making it an attractive option for investors with a high-risk appetite and a long-term investment horizon.

3. Who manages MUTF_IN: SBI_Smal_Cap_MY8974?

The fund is managed by R. Srinivasan, an experienced fund manager known for his ability to identify high-potential small-cap companies and generate long-term value for investors.

4. What is the expense ratio of MUTF_IN: SBI_Smal_Cap_MY8974?

The expense ratio of the SBI Small Cap Fund (MUTF_IN: SBI_Smal_Cap_MY8974) ranges from 0.80% to 2.00%, depending on whether investors choose the direct or regular plan.

5. What kind of returns can I expect from MUTF_IN: SBI_Smal_Cap_MY8974?

The fund has delivered strong returns over the years, with five-year annualized returns of around 23%. However, returns are subject to market conditions and the performance of small-cap companies in the portfolio.

6. What is the risk level of MUTF_IN: SBI_Smal_Cap_MY8974?

The fund is considered high risk due to its focus on small-cap companies, which tend to be more volatile than large-cap companies.

7. How can I invest in MUTF_IN: SBI_Smal_Cap_MY8974?

You can invest in the SBI Small Cap Fund (MUTF_IN: SBI_Smal_Cap_MY8974) through SBI Mutual Fund’s official website, online