SBI Small Cap Fund Direct-Growth: Returns, Risk & Analysis
SBI Small Cap Fund Direct-Growth is a Small Cap mutual fund scheme from SBI Mutual Fund. This fund has been in existence for 11 years and 5 months, having been launched on January 01, 2013. As of March 31, 2024, SBI Small Cap Fund Direct-Growth has ₹28,375 Crores worth of assets under management (AUM) and is a medium-sized fund of its category. The fund has an expense ratio of 0.67%, which is close to what most other Small Cap funds charge.
SBI Small Cap Fund Direct-Growth has delivered average annual returns of 26.95% since inception. The fund has doubled the money invested in it every 3 years.
The ability of SBI Small Cap Fund Direct-Growth to deliver returns consistently is in-line with most funds of its category. Its ability to control losses in a falling market is average.
The fund has the majority of its money invested in financial, services, consumer discretionary, capital goods, and consumer staples sectors. It has taken less exposure in financial and services sectors compared to other funds in the category.
The top holdings of SBI Small Cap Fund Direct-Growth include Nifty 50, Blue Star Ltd., Finolex Industries Ltd., Kalpataru Projects International Ltd., GE T&D India Ltd., Carborundum Universal Ltd., Chalet Hotels Ltd., SBFC Finance Ltd., Lemon Tree Hotels Ltd., and CMS Info Systems Ltd.
In terms of asset allocation, SBI Small Cap Fund Direct-Growth has invested 92.72% in equity and 7.28% in other assets as of May 31, 2024. Within the equity allocation, the fund has 88.01% in small-cap stocks, 4.71% in mid-cap stocks, and 0% in large-cap stocks.
The fund has a trailing return of 44.96% for the past 1 year, which is higher than the category average of 50.14%. For longer durations, it has performed better than the category average.
In terms of risk and return ratios, SBI Small Cap Fund Direct-Growth has an alpha of 5.02, which indicates that it has underperformed at beating the benchmark. The Sharpe ratio is 1.43, indicating poor risk-adjusted returns. The beta is 0.61, meaning the fund is less sensitive to market ups and downs. The standard deviation is 11.6, indicating relatively stable returns compared to the category average.
Overall, SBI Small Cap Fund Direct-Growth is a medium-sized fund in the Small Cap category. It has delivered good average annual returns since inception, but its ability to control losses in a falling market is average. The fund has a high exposure to small-cap stocks and has performed better than the category average in terms of returns. However, it has underperformed at beating the benchmark and has poor risk-adjusted returns. Investors should carefully evaluate these factors before making an investment decision in SBI Small Cap Fund Direct-Growth.