SBI Small Cap Fund and HDFC Small Cap Fund both form part of small-cap Mutual Fund schemes. Small cap funds are the ones who invest their corpus in shares of companies having corpus amount of less than INR 500 crores. Small Cap means 251st company onwards in terms of full Market capitalization. These schemes have a high-risk and are considered good Income earners in the long-run. Small-cap schemes generally have a low share price thereby; individuals can purchase larger quantities of these shares. Though both SBI Small Cap Fund Vs HDFC Small cap Fund belong to the same category yet; they differ on various parameters such as NAV, performance, and so on. So, let us understand the differences between both the schemes.
SBI Small Cap Fund (Erstwhile SBI Small & Midcap Fund)
SBI Small Cap Fund (earlier known as SBI Small & Midcap Fund) was launched in the year 2013. The fund seeks to provide investors with a long-term Capital growth along with the liquidity of an open-ended scheme by Investing in a well-diversified basket of equity stocks of small cap companies. As an investment strategy, the SBI Small Cap Fund follows a blend of growth and value style of investing. The scheme uses S&P BSE Small Cap Indexas its benchmark. The current fund manager of the scheme is R Srinivasan. Some of the top holdings of the scheme as on 31/05/2018 are CCIL-Clearing Corporation of India Ltd (CBLO), Westlife Development LTD, Kirloskar Oil Engines Ltd, Hawkins Cookers Ltd, etc.
HDFC Small Cap Fund
HDFC Small Cap Fund is an open-ended Mutual Fund scheme offered by HDFC Mutual Fund under small cap category. This scheme was launched on April 03, 2008. The objective of the scheme is to generate capital growth in the long-term by primarily investing in shares of small-cap companies. The scheme uses Nifty Small Cap 100 as its benchmark index to construct its Portfolio. It also uses NIFTY 50 as an additional index. The fund managers managing the HDFC Small Cap Fund are Mr. Chirag Setalvad and Mr. Rakesh Vyas. As on June 30, 2018, some of the top holdings of HDFC Small Cap Fund’s portfolio consisted of NIIT Technologies, Aurobindo Pharma, Firstsource Solutions, Sharda Cropchem, etc.
SBI Small Cap Fund Vs HDFC Small Cap Fund
Though both SBI Small Cap Fund and HDFC Small cap Fund belong to the same category of small-cap funds yet, there exists differences between both the schemes. So, let us understand the differences between both the schemes that are divided into four sections, namely- Basics Section, Performance Section, Yearly Performance Section, and Other Details Section.
Basics Section
The basics section is the first one in the comparison of both the schemes. The parameters that form part of this scheme includes scheme category, Fincash Ratings, and Current NAV. To begin with the scheme category, it can be said that both the schemes belong to the same category, that is, equity small-cap. With respect to Fincash Ratings, it can be said that HDFC Small cap Fund is rates as 4-Star Fund, whereas SBI Small Cap Fund is rated as 5-Star Fund. Coming to the comparison of Net Asset Value, the NAV of HDFC Small Cap Fund as on 19th July, 2018 was INR 42.387, and the NAV of SBI Small Cap Fund was INR 49.9695. The table given below summarizes the comparison of both the schemes.
Parameters Basics NAV Net Assets (Cr) Launch Date Rating Category Sub Cat. Category Rank Risk Expense Ratio Sharpe Ratio Information Ratio Alpha Ratio Benchmark Exit Load SBI Small Cap Fund
Growth
Fund Details ₹108.688 ↑ 1.49 (1.39 %) ₹15,395 on 28 Feb 23 9 Sep 09 ☆☆☆☆☆ Equity Small Cap 4 Moderately High 1.84 0.41 0 0 Not Available 0-1 Years (1%),1 Years and above(NIL) HDFC Small Cap Fund
Growth
Fund Details ₹79.644 ↑ 0.80 (1.01 %) ₹14,649 on 28 Feb 23 3 Apr 08 ☆☆☆☆ Equity Small Cap 9 Moderately High 1.84 0.57 0 0 Not Available 0-1 Years (1%),1 Years and above(NIL)
Performance Section
The performance section compares the Compounded Annual Growth Rate or CAGR between both the schemes. This CAGR is compared at different time intervals, namely, 3 Month Return, 6 Month Return, 3 Year Return, 5 Year Return, and Return Since Inception. A holistic comparison of both the schemes shows that both the schemes have performed differently. In some instance SBI Small Cap Fund has performed better, while in some cases HDFC Small Cap Fund has performed well. The summary comparison of performance section is tabulated as follows.
Parameters Performance 1 Month 3 Month 6 Month 1 Year 3 Year 5 Year Since launch SBI Small Cap Fund
Growth
Fund Details -1% -4.7% -4.5% 6.2% 38.6% 14.6% 19.2% HDFC Small Cap Fund
Growth
Fund Details 1.2% -0.2% 4.7% 12.2% 45.2% 12.5% 14.8%
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Yearly Performance Section
This section deals with the absolute returns generated by both the funds in each year. In this case, we can see that there is a difference in the performance of both the schemes. In many situations, SBI Small Cap Fund has performed better than HDFC Small Fund. The yearly performance of both the funds is tabulated as follows.
Parameters Yearly Performance 2022 2021 2020 2019 2018 SBI Small Cap Fund
Growth
Fund Details 8.1% 47.6% 33.6% 6.1% -19.6% HDFC Small Cap Fund
Growth
Fund Details 4.6% 64.9% 20.2% -9.5% -8.1%
Other Details Section
This is the last section in the comparison of both the funds. In this section, the parameters such as AUM, Minimum SIP and Lumpsum Investment, and Exit Load are compared. To begin with the minimum SIP investment, both the schemes have the same monthly SIP amounts, i.e., INR 500. Similarly, in case of minimum lumpsum investment, the amount for both the schemes are same i.e, INR 5,000. Coming to the AUM, the AUM of HDFC Small Cap Fund as on 30th June 2018 was INR 4,143 crores and the AUM of SBI Small Cap Fund was INR 792 crores. The table given below summarizes the other details for both the schemes.
Parameters Other Details Min SIP Investment Min Investment Fund Manager SBI Small Cap Fund
Growth
Fund Details ₹500 ₹5,000 R. Srinivasan - 9.29 Yr. HDFC Small Cap Fund
Growth
Fund Details ₹300 ₹5,000 Chirag Setalvad - 8.68 Yr.
Growth of 10k Investments over the years
SBI Small Cap Fund
Growth
Fund Details Growth of 10,000 investment over the years.
Date Value 31 Mar 18 ₹10,000 31 Mar 19 ₹9,461 31 Mar 20 ₹7,438 31 Mar 21 ₹14,524 31 Mar 22 ₹18,628 31 Mar 23 ₹19,786 HDFC Small Cap Fund
Growth
Fund Details Growth of 10,000 investment over the years.
Date Value 31 Mar 18 ₹10,000 31 Mar 19 ₹10,092 31 Mar 20 ₹5,877 31 Mar 21 ₹11,949 31 Mar 22 ₹16,054 31 Mar 23 ₹18,007
Detailed Assets & Holdings Comparison
SBI Small Cap Fund
Growth
Fund Details Asset Allocation
Asset Class Value Cash 15.05% Equity 84.84% Equity Sector Allocation
Sector Value Industrials 35.31% Consumer Cyclical 21.74% Basic Materials 11.82% Financial Services 5.58% Consumer Defensive 4.4% Health Care 2.8% Communication Services 1.82% Real Estate 0.84% Utility 0.55% Top Securities Holdings / Portfolio
Name Holding Value Quantity Blue Star Ltd (Industrials)
Equity, Since 30 Jun 18 | BLUESTARCO4% ₹675 Cr 4,700,000 Carborundum Universal Ltd (Industrials)
Equity, Since 31 May 19 | CARBORUNIV3% ₹484 Cr 4,939,842 Triveni Turbine Ltd (Industrials)
Equity, Since 31 Jan 19 | 5336553% ₹483 Cr 15,208,431
↓ -3,117 Kalpataru Power Transmission Ltd (Industrials)
Equity, Since 31 May 20 | KALPATPOWR3% ₹477 Cr 9,000,000 Elgi Equipments Ltd (Industrials)
Equity, Since 31 Dec 13 | ELGIEQUIP3% ₹468 Cr 10,000,000 TTK Prestige Ltd (Consumer Cyclical)
Equity, Since 28 Feb 21 | TTKPRESTIG3% ₹447 Cr 5,900,000
↑ 765,966 Vedant Fashions Ltd (Consumer Cyclical)
Equity, Since 28 Feb 22 | 5434633% ₹421 Cr 3,500,000 V-Guard Industries Ltd (Industrials)
Equity, Since 31 Aug 20 | VGUARD3% ₹418 Cr 17,000,000 Finolex Industries Ltd (Industrials)
Equity, Since 31 Aug 20 | FINPIPE3% ₹396 Cr 23,395,569 Lemon Tree Hotels Ltd (Consumer Cyclical)
Equity, Since 30 Sep 19 | 5412333% ₹390 Cr 50,000,000 HDFC Small Cap Fund
Growth
Fund Details Asset Allocation
Asset Class Value Cash 7.62% Equity 92.38% Equity Sector Allocation
Sector Value Industrials 26.6% Consumer Cyclical 20.62% Technology 13.02% Financial Services 12.98% Basic Materials 8.5% Health Care 4.77% Consumer Defensive 3.78% Communication Services 1.99% Top Securities Holdings / Portfolio
Name Holding Value Quantity Sonata Software Ltd (Technology)
Equity, Since 31 Oct 17 | SONATSOFTW5% ₹721 Cr 9,921,862
↓ -981,754 Bajaj Electricals Ltd (Consumer Cyclical)
Equity, Since 31 Mar 19 | BAJAJELEC4% ₹604 Cr 5,537,922
↑ 25,000 Bank of Baroda (Financial Services)
Equity, Since 31 Mar 19 | 5321344% ₹570 Cr 35,828,792 Firstsource Solutions Ltd (Technology)
Equity, Since 31 Mar 18 | FSL4% ₹534 Cr 47,400,000
↑ 400,000 eClerx Services Ltd (Technology)
Equity, Since 31 Mar 18 | ECLERX3% ₹416 Cr 2,980,080
↓ -31,963 Kirloskar Ferrous Industries Ltd (Industrials)
Equity, Since 30 Apr 18 | KIRLFER3% ₹389 Cr 8,965,017
↑ 36,177 IDFC Ltd (Financial Services)
Equity, Since 31 Oct 21 | IDFC3% ₹384 Cr 50,571,544 Aster DM Healthcare Ltd Ordinary Shares (Healthcare)
Equity, Since 30 Jun 19 | ASTERDM3% ₹368 Cr 16,530,886 Great Eastern Shipping Co Ltd (Industrials)
Equity, Since 31 Jan 15 | GESHIP3% ₹368 Cr 6,668,480 KEI Industries Ltd (Industrials)
Equity, Since 30 Sep 17 | KEI2% ₹343 Cr 2,110,000
Therefore, from the above pointers, it can be said that both the schemes exhibit different attributes with respect to different parameters. However, when it comes to investing, it is always advisable that people should go through the scheme’s modalities completely before doing the actual investment. Additionally, they should also check whether the scheme’s approach is in-line with your investment objective. To get further clarification, you can even consult a financial advisor. This will help you ensure that your investment is safe as well as it paves way for wealth creation.
