SBI Mutual Funds: Can I invest in SBI Small Cap Fund? (2024)

FAQs

Is it safe to invest in SBI small cap mutual fund? ›

Should You Invest In SBI Small Cap Fund? The fund has delivered outstanding returns and exceeds all performance and risk-management requirements. You can choose this fund if you want your portfolio to have exposure to small caps. To invest in small caps, however, you must be prepared to withstand greater volatility.

SBI Small and Mid Cap Fund are not accepting fresh investments, as it has reached its minimum investment limit. A mutual fund scheme typically chooses to stop fresh investments when there is a perceived dearth of investment opportunities.

Expense ratio: The expense ratio of the fund is 1.77% for Regular plan as on Aug 31, 2023. 6. Minimum Investment: Minimum investment required is Rs 5000 and minimum additional investment is Rs 1000. Minimum SIP investment is Rs 500.

Nippon India Small Cap Fund is the third small cap fund that has stopped accepting fresh investments. The other two small cap schemes that stopped accepting money are SBI Small Cap Fund and Tata Small Cap Fund.

SBI Small Cap can be considered by investors with a medium to high risk appetite for the long-term (10 years and above). This fund is among the best in the category and has been performing consistently since its inception in 2009.

Mid and small-caps are best suited for long-term goals. If you need the money in the next 5 years, investing in safer assets like large-caps or debt products is best. Mid- and small-caps could be a good option if you aim to retire in 20 years.

We do not recommend small cap funds to new or inexperienced investors. New investors will find it difficult to handle the volatility and prolonged underperformance associated with these schemes. So, if you don't have experience investing in equity mutual funds, don't get into these schemes.

Small cap stocks are riskier compared to the mid-caps and the large caps and their price movements can be quite volatile. Small caps typically outperform large cap funds over a longer period of time due to stocks in their portfolio having a higher growth potential.

The small-cap Mutual Fund category has given impressive returns. Irrespective of the time horizon of an investor, small-cap mutual funds have grown investors' wealth many-folds. Market experts say that in the long term, this MF category is capable of giving the maximum return on one's money.

If you have a high appetite for risk and can stay invested for 5 to 7 years, then investment in Small Cap Funds are advisable. It is also recommended that you do not overload your investment portfolio with small cap funds to minimise short term fluctuation in performance.

Can we put lumpsum in SBI Small Cap Fund? ›

SBI Small Cap fund, with assets worth Rs 3,476 crore (Feb 2020), opened for fresh lump-sum subscription on March 30. The fund will accept inflows up to a maximum of Rs 1,000 crore overall.

1. Current NAV: The Current Net Asset Value of the SBI Small Cap Fund - Direct Plan as of Sep 21, 2023 is Rs 150.83 for Growth option of its Direct plan. 2. Returns: Its trailing returns over different time periods are: 17.08% (1yr), 32.06% (3yr), 21.08% (5yr) and 26.03% (since launch).

Small Cap Fund : The fund has 85.75% investment in domestic equities of which 0.66% is in Large Cap stocks, 7.77% is in Mid Cap stocks, 48.25% in Small Cap stocks. Suitable For : Investors who are looking to invest money for at least 3-4 years and looking for very high returns.

How to Invest in SBI Small Cap Fund? Mutual funds can be bought directly from the website of the fund house. For instance, SBI Small Cap Fund fund can be purchased from the website of SBI Mutual Fund. You can also buy mutual funds through platforms like MF Central, MF Utility, among others.

You simply have to log-on to the 'Online Transaction' page of the desired Mutual Fund and log-in using your Folio Number and/or the PAN, select the Scheme and the number of units (or the amount) you wish to redeem and confirm your transaction.

Small cap stocks are riskier compared to the mid-caps and the large caps and their price movements can be quite volatile. Small caps typically outperform large cap funds over a longer period of time due to stocks in their portfolio having a higher growth potential.

Safety: The mutual fund schemes by SBI are one of the country's trusted and reliable fund schemes. Variety of Options: Investing in SBI Mutual Fund comes with a broad Range of choices, you can invest for a short-term, mid-term and long-term in these schemes offered by the SBI.

In February, 2021, SBI Mutual Fund capped the inflows at Rs 25,000 per month for SIP / STP in SBI Small Cap Fund. The limits for various frequencies are: Daily SIP / STP: Rs 1,250, weekly SIP / STP: Rs 6,250, monthly SIP / STP: Rs 25,000, quarterly SIP / STP: Rs 75,000.