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.
Frequently Asked Questions
What is the risk level of the SBI Small Cap Fund?
As per the factsheet published by its fund house, SBI Small Cap Fund carries ‘Very High Risk’ for its investors.
Is there any lock-in period in the SBI Small Cap Fund?
SBI Small Cap Fund has no lock-in period. Investors of this fund can make redemptions on any date as per their requirements.
What type of mutual fund is the SBI Small Cap Fund?
SBI Small Cap Fund is an open-ended equity mutual fund scheme belonging to the small cap fund category.
Is the SBI Small Cap Fund open-ended or close-ended?
SBI Small Cap Fund is an open-ended equity mutual fund scheme.
What is the benchmark index for this SBI Small Cap Fund?
The benchmark index for the SBI Small Cap Fund is the BSE Small Cap Index TRI. The fund also has the BSE Sensex TRI as its additional benchmark