SBI small-cap mutual fund has turned our investment of one lakh into more than nine lakhs in just nine years by giving a compounded return of more than 27 per cent in the past nine years. In this blog, we will do an SBI small cap fund review in a simple and step-by-step way.
SBI small cap fund review
We will first look at the return analysis in SBI small cap fund review. We will first look at discrete period returns and see how this mutual fund has performed in a particular calendar year.
SBI small-cap fund Return Analysis
Here we will try to find out how it has performed against its Benchmark and how much Alpha it has generated over the years.
Video of SBI small cap fund review
Crystal Clear from this graph shows that this fund has beaten its Benchmark over the years except for 2021.
And it has generated excellent returns for its mutual fund investors and an excellent Alpha. A similar pattern can see in the compounded return. That is, the CAGR of this mutual fund in the first year has a compounded return of 3.68 per cent in the third year, 27.9 per cent in the fifth year, 13.25 per cent and Ninth year 27.65 per cent.
And if we look at the average ruling return of this mutual fund, we can see that this fund has performed consistently well over the years and given an average ruling return of more than 20 per cent.
This way, this fund turns our investment nine times in nine years.
Next, we will look at the risk analysis in SBI small cap fund review.
In three years and five-year periods, all the parameters like Alpha Beta Sharpie ratio standard deviation and maximum drawdown in all parameters, this fund has performed better than its category average.
This fund’s alpha tells us it performs very well in the bull market, significantly better than its category average.
And the standard deviation and maximum drawdown of this fund tell us that this fund tends to fall less than its category average in the Beer Market.
So be it a bull market or a bear Market. This fund performs better than its category average.
SBI Small Cap Fund has made your investment nine times in nine years by giving a compounded return of more than 27 per cent.
SBI Small Cap Fund is a 13-year-old open-ended mutual fund.
And in SBI Small Cap Fund, lump sum investment is not allowed, and for sip investment, you can do up to the maximum limit of 25 000 per pan card per month.
Currently, on 28 Feb 2023, sbi small cap fund direct growth nav is 110.11
This fund has an asset render management that is an AUM of 15 300 crores and an expense ratio of 0.71 per cent.
SBI small-cap fund Ratings
SBI Small-Cap Fund is a high-risk mutual fund. If we look at the rating of this mutual fund, value research has given four-star to SBI Small-Cap Fund, Crisil has given three-star to SBI Small Cap Fund, Morningstar has given Four stars to SBI small-cap fund, and Angel sparks ARQ has given two stars to this mutual fund.
Mr R Srinivasan’s son has managed SBI Small Cap Fund for nine years.
I hope this SBI small cap fund review will help you choose the right small cap fund for your investment portfolio.
SBI small-cap mutual fund will add Great Value to your Investment Portfolio in the long term.
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Disclaimer: This blog is solely for educational purposes. The securities/investments quoted here are not recommendatory. This is not an investment advisory. The blog is for information purposes only. Investments in the securities market are subject to market risks; read all the related documents carefully before investing.
Past performance is not indicative of future returns. Please consider your specific investment requirements, risk tolerance, goal, time frame, risk and reward balance, and the cost associated with the investment before choosing a fund or designing a portfolio that suits your needs. The performance and returns of any investment portfolio can neither be predicted nor guaranteed.
The information provided in this article is solely the author/advertisers’ opinion and not investment advice – it is provided for educational purposes only. Using this, you agree that the information does not constitute any investment or financial instructions by Ace Equity Research and the team. Anyone wishing to invest should seek his or her own independent financial or professional advice. Do conduct your research along with financial advisors before making any investment decisions. Ace Equity Research and the team are not accountable for the investment views provided in the article.
S.K. Singh (B.Sc., DHRM, PGDB (Manipal), Ex-Banker (10 years Exp.)), AMFI Reg. No.-251149.
At the helm of Ace Equity Research is our esteemed founder, S.K. Singh. With a solid educational background and years of experience in the field, S.K. Singh brings valuable expertise to our platform.
S.K. Singh's passion for financial markets and dedication to helping investors make informed decisions led him to establish Ace Equity Research. With a deep understanding of the intricacies of the investment landscape, he has a Commitment to Excellence and a Data-Driven Approach to Equity Research.