SBI Small & Midcap - Regular Plan - Growth: Top Performance in Last 5 Years

SBI Small & Midcap - Regular Plan - Growth: Top Performance in Last 5 Years

Apr 13, 2018

Investing in higher risk stocks provide an opportunity of higher returns in a quicker time period. Mutual funds which have a major of their corpus invested in equity of companies which have a mid or small capitalization carry a higher element of risk but also tend to provide more return on investment when compared with the funds which invest in equity of companies with large capitalization.

The composition of the investments between mid cap and small cap companies vary from fund to fund. Most of these stocks that are invested into are high beta stocks and hence the funds are generally positioned as a high return-risk trade off funds. Companies with medium and small companies tend to be more volatile in their performances and are more sensitive to the market factors. However they do compensate for this with phases of high dividend payouts. Hence Equity funds – Mid and small cap would ideally suit an investor who is willing to bare the risk in exchange for higher returns.

Overview of SBI Small & Midcap - Regular Plan – Growth fund

SBI Small & Midcap – Regular Plan – Growth is a mutual fund which belongs to the Equity funds - mid & small cap. A major portion of the corpus of this fund is invested in equity of various companies with mid and small capitalization. This fund was launched on 09.09.2009 as an open ended growth scheme fund. The minimum investment is Rs. 5000 and further investments can be made with a minimum top up of Rs. 1000. This fund is positioned as a moderately risk fund within the category. The stated objective of the fund is focused on providing longer term appreciation of the capital invested as well as higher incomes by investing in equity of mid and small capital companies.

Nearly 50 % of the investments of the fund are made into sectors like Industrial products, consumer durables & non durables, chemicals etc. Apart from these sectors, others into which the corpus of this fund is invested include such diverse sectors like hotels, Pharmaceuticals, Auto ancillaries, construction projects, paper etc. The fund has its investments in a diverse mid and small cap companies like Westlife Development India ltd, Graphite India ltd, Relaxo Footwear, Hawkins Cookers ltd, Orient Refectories ltd, Kirloskar Oil engines ltd, Hatsun Agroproducts etc. Belonging to a typically high risk category, the fund has invested not only into diverse companies but also into more stable mid and small cap companies there by mitigating the element of risk.

Performance of the fund in the category

SBI Small & Midcap – Regular Plan – Growth Fund has been a high performer in the category evident from the 5-year return of it.


Source: Swaraj Wealth Research


The fund has delivered a 5-year return of 35.73% which is higher than the benchmark of S&P BSE Small Cap Index performance of 24.2 % and the Equity Funds Mid and Small Cap category average performance of 24.95%. The 1-year return as well as the 3-year returns of this fund outperforms the performance of the BSE index and the category.


Source: Swaraj Wealth Research


The year-year growth of the fund has been comparatively higher than the average growth of the category and S&P BSE Small Cap index. Especially in the year 2017 it records a high growth of 78.66 % which is nearly the double of category’s growth in 2017.


Source: Swaraj Wealth Research


The SIP growth rate of S&P BSE small Cap index which is the benchmark is at 3.87 over the last one year. SBI Small & Midcap –Regular Plan – Growth fund out performs this benchmark by a large margin with a SIP growth rate of 17.16% over the last one year.

In a category considered to be higher on the risk, this fund has been providing consistent as well as high returns over a period of time making it one of the best funds to invest in the Equity Small & Mid Cap category.

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