Investment Strategy
- The scheme invests predominantly in a diversified portfolio of small cap stocks (at least 65%) to reduce risk while aiming for growth.
- SBI Small Cap Fund may also invest up to 35% in other equities (including mid cap & large cap stocks) and/or money market or debt instruments.
- The fund manager may use derivatives, either to protect the portfolio from risks through hedging or to increase returns by implementing non-hedging strategies.
- The fund follows a bottom-up approach for stock picking.
- SBI Small Cap Fund follows a blend of value and growth styles of investing.
Who Should Invest
- Investors having a long term investment horizon and seeking to benefit from the higher growth potential of small cap companies.
- Those who can tolerate high volatility and high risk, given the higher degree of volatility in small-cap companies when compared to large cap and mid cap companies.