Mutual Funds

By | May 28, 2018

SBI Small Cap fund is back:

One of the best small cap mutual fund which has given around 40-60% returns in a year at times is back.

The SBI Small & Midcap Fund was suspended for new investments in Oct 2015 and now, it is open for new subscriptions. Customers who want to purchase the fund can buy in SIP (systematic investment plan) mode only from 16th May. Name for this fund has been changed to SBI Smallcap Fund.  Customers can invest max of Rs.25,000 per month and per PAN card.

No other small cap fund which was closed for subscriptions has reopened like SBI Smallcap fund.

What are mutual funds:

In mutual funds, investors money is invested into different market instruments like equity funds, debt funds and other securities etc so that risk is distributed. In comparison to shares, mutual funds are a good choice for investors. For example,

Investor A has invested Rs.1,00,000 in a company. After 2 months if share value is decreased by 10% then his net worth value is only Rs. 90,000.

Investor B has invested his money in a mutual fund which is having a portfolio of 15 or more companies. So even if 2 companies value decreases by 10% then his net worth would be at around 97-98,000. So the risk is distributed. Mutual funds give better returns in the long run.

Fund details:

It provides long-term growth in capital for investors. It is an open-ended scheme and it invests in diversified basket of equity stocks of small cap companies.

Investment Strategy:

This scheme follows a mixture of growth and value style of investing. It follows bottom-up approach to stock-picking and choose companies within the small cap space. Source.
  • Category: EQUITY
  • AAUM:  836 Cr as on 30 Apr 2018
  • Investment Options: Dividend and Growth
  • Entry Load: NA
  • Inception: Nov 16, 2013
  • Benchmark: S&P BSE Small Cap Index.
  • Exit Load: 1% if redeemed within 1 year. Nil if redeemed after 1 year of fund allotment.

Fund Manager: Mr. R. Srinivasan

Types of fund:

  • SBI Small Cap Fund – Direct Plan – Dividend
  • SBI Small Cap Fund – Regular Plan – Dividend
  • SBI Small Cap Fund – Regular Plan – Growth
  • SBI Small Cap Fund – Direct Plan – Growth

Portfolio:

Stock Name (%) Of Total AUM
WESTLIFE DEVELOPMENT LTD. 7.87
KIRLOSKAR OIL ENGINES LTD. 4.76
HAWKINS COOKERS LTD. 4.75
ALEMBIC LTD. 4.22
DISA INDIA LTD. 4.12
LT FOODS LTD. 4.11
TECHNO ELECTRIC & ENGINEERING COMPANY LTD. 4.07
THE GREAT EASTERN SHIPPING COMPANY LTD. 3.95
TAMIL NADU NEWSPRINT & PAPERS LTD. 3.91
THANGAMAYIL JEWELLERY LTD. 3.69
HATSUN AGRO PRODUCT LTD. 3.67
POWER MECH PROJECTS LTD. 3.66
AVANTI FEEDS LTD. 3.56
ELGI EQUIPMENTS LTD. 3.41
ASHIANA HOUSING LTD. 3.26
CCIL-CLEARING CORPORATION OF INDIA LTD (CBLO) 3.19
RELAXO FOOTWEARS LTD. 3.17
ORIENT REFRACTORIES LTD. 3.03
CAMLIN FINE SCIENCES LTD. 2.95
AXIS BANK LTD. 2.91
PILANI INVESTMENT & INDUSTRIES CORPORATION LTD. 2.86
NESCO LTD. 2.74
GUFIC BIOSCIENCES LTD. 2.69
UFO MOVIEZ INDIA LTD. 2.66
GARWARE WALL ROPES LTD. 2.47
FAIRCHEM SPECIALITY LTD. 2.3
DEEPAK NITRITE LTD. 2.25
GANESHA ECOSPHERE LTD. 2.24
GALAXY SURFACTANTS LTD. 1.9
RAJRATAN GLOBAL WIRE LTD. 1.84
CASH AND OTHER RECIVABLES -2.21
Grand Total 100.00%

Sectoral Breakdown (in %):

Industry Ratio
CONSUMER GOODS 22.96
INDUSTRIAL MANUFACTURING 15.32
SERVICES 14.56
CONSTRUCTION 10.99
CHEMICALS 9.4
PHARMA 6.91
FINANCIAL SERVICES 5.77
TEXTILES 4.71
PAPER 3.91
CBLO 3.19
MEDIA AND ENTERTAINMENT 2.66
AUTOMOBILE 1.84
CASH AND OTHER RECIVABLES -2.21

This Scheme has two plans, Regular Plan and Direct Plan.

Regular Plan: Investors can purchase mutual fund through distributors. 

Direct Plan: This plan is only for investors who purchase units in a Scheme directly with the Mutual Fund i.e SBI. All the features of the Direct Plan under this Scheme like the investment objective, asset allocation pattern, investment strategy, risk factors, facilities offered, load structure etc. will be the same except for a lower expense ratio. There will be no Annual Recurring Expenses, Brokerage fee/Commission paid to distributors under the Direct Plan. Both the plans will be having a common portfolio.

Investment Size:

Minimum Investment Amount : Rs. 5000/- & in multiples of Rs. 1/-
Additional Purchase : Rs. 1000/- & in multiples of Rs. 1/-

Minimum Redemption: Rs.1000 or 100 units or account balance whichever is lower.

Note: Direct mutual funds can be purchased through Zerodha. They have introduced Coin app also.

Tags: Mutual funds, SBI mutual funds

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