
MF Tracker: Will this Rs 30,000 crore smallcap fund continue to maintain its long-term performance?
emerged as the best-performing equity
mutual fund
based on daily rolling returns, delivering a CAGR of 21.87% over the past seven years. This performance stands out among approximately 171 equity mutual funds during the same timeframe.
Launched in September 2009, the fund is given a three-star rating by
Value Research
and is unrated by Morningstar.
Based on daily rolling returns, the fund has offered 20.68% CAGR in the last five years and in the last three years, it gave a CAGR of 26.13% based on daily rolling returns.
Best MF to invest
Looking for the best mutual funds to invest? Here are our recommendations.
View
Details
»
by Taboola
by Taboola
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
호계동: 손끝에서 빛나는 반지 [지금 확인]
월드비전
더 알아보기
Undo
Also Read |
Nippon India Taiwan Equity Fund tops return chart with 22% in May. Can the momentum sustain?
Based on the trailing returns, the fund has underperformed or performed at par with the category average. In the three months, the fund gave a 15.23% return against 18.64% as the category average. In the last six months, the fund lost 6.95% against a loss of 6.49% by the smallcap category. In the last one year, three years, and five years, the fund has underperformed against its category average in the similar period.
Live Events
Over the past year, the fund delivered a return of 7.43%, lagging the category average of 14.96%. Over three years, it posted an 18.87% CAGR versus the category's 23.38%. Across five years, the fund returned a CAGR of 29.31%, falling short of the 34.23% category average.
Note, the returns of benchmark BSE 250 Small Cap - TRI were not available in the ACE
MF
, so ETMutualFunds could not compare the performance of the fund with the benchmark.
Experts take on performance
According to an expert, since its inception, SBI
Small Cap Fund
has consistently outperformed its benchmark, delivering a 21.87% CAGR over seven years based on daily rolling returns, an impressive feat in the small-cap space.
'What sets the fund apart is its consistency across market cycles, including periods of high volatility like the 2020 pandemic crash and the 2018 mid-cap/small-cap correction. Even during these downturns, the fund demonstrated lower drawdowns compared to peers, suggesting superior risk-adjusted returns,' Shruti Jain, Chief Strategy Officer, Arihant Capital Markets, shared with ETMutualFunds.
Jain adds that the fund follows a bottom-up stock-picking approach, with a focus on companies having scalable business models, clean governance, and healthy balance sheets.
Over the last 10 calendar years (2015–2024), the smallcap fund posted negative returns only once—in 2018—when it declined 19.62%. Its best performance came in 2017, delivering a stellar return of 78.66%, the highest in the decade.
'The fund has consistently showcased strong downside protection compared to both its benchmark and peers. During the 2018 small-cap correction, while the Nifty Small Cap 100 index dropped by 44.4%, SBI Small Cap Fund limited its decline to just 28.1%, outperforming the category average fall of 29.4%,' Jain further commented.
'Again, in the 2020 COVID-19 market crash, the fund's downside capture ratio stood at an impressive 43.6, meaning it lost less than half as much as the broader market. In recent corrections, the funds have been almost at par with its peer and benchmarks. These figures highlight the fund's resilience and effective risk management, even during some of the most volatile market phases,' she added.
Also Read |
9 equity mutual funds offer over 20% CAGR in seven years. Are there any included in your portfolio?
If an investor invested Rs 10,000 at the time of the inception of the fund, the current value of the investment would have been Rs 1.23 crore with an XIRR of 21.37%. In the last five years, the value of the same monthly investment would have been Rs 9.53 lakh with an XIRR of 19.14%.
In the last three years, the value of the same SIP investment would have been Rs 4.44 lakh now with an XIRR of 14.93%
If an investor made a lumpsum investment of Rs 1 lakh at the time of the inception of the fund, the current value would have been Rs 16.91 lakh now with a CAGR of 19.67%. In the last five years, the value of the same lumpsum investment would have been Rs 3.58 lakh with a CAGR of 29.08%. In the last three years, the value of this investment would have been Rs 1.68 lakh now, with a CAGR of 18.90%.
The smallcap fund had 79.73% in equity, 0.17% in debt, and 20.10% in others as on April 30, 2025. In comparison to the small cap category, the scheme is overweight on others, whereas underweight on equity and debt. The category on average had 91.20% in equity, 0.29% in debt, and 8.51% in others.
Being a smallcap fund, the scheme invests 76.96% in small caps, 1.77% in mid caps, and 21.27% in others.
Post the allocation of the small cap fund, Jain said that SBI Small Cap Fund has demonstrated effective downside risk management by maintaining a well-diversified portfolio, avoiding excessive concentration, and adopting a bottom-up stock selection approach and the fund manager tends to focus on companies with strong balance sheets, quality management, and scalable business models traits that help weather economic slowdowns.
The PE and PBV ratios of the midcap fund were recorded at 40.75 times and 6.26 times, respectively, whereas the dividend yield ratio was recorded at 0.59 times as of April 2025.
The fund had the highest allocation in the finance sector of around 7.94% compared to 7.53% in the category. The scheme is overweight on capital goods, chemicals, FMCG, hospitality, Agri, Infrastructure, and consumer durables.
'Many of the portfolio's companies are under-researched or emerging players, which offers the potential for high alpha generation. The fund typically holds around 45–55 stocks, ensuring diversification without dilution of returns,' Jain told ETMutualFunds.
Also Read |
Planning to save Rs 10,000 monthly? Here is how much you will generate in 25 years
The top 10 stocks of the fund constitute 24.66% of the total portfolio as of April 2025. Based on the last three years, the scheme has offered a Treynor ratio of 1.65 and an alpha of 0.01. The sortino ratio of the scheme was recorded at 0.54. The return due to net selectivity was recorded at (0.06), and the return due to improper diversification was recorded at 0.07 in the last three years.
The expert adds that the fund's Sharpe Ratio has consistently been higher than the category average, reinforcing its strength in managing both growth and downside risks.
The investment style of the fund is to invest in growth-oriented stocks in smallcap market capitalisation
Apart from the SBI Small Cap Fund, there are 22 other funds in the category which have a track record of three years in the market. Among the total 23 funds in the category, Bandhan Small Cap Fund offered the highest return of 32.09% in the last three years. ITI Small Cap Fund offered the second-highest return of 29.40% in the same period.
PGIM India Small Cap Fund
gave the lowest return in the last three years of around 15.45%.
Post the performance of the small cap fund in the last three years, Jain said that the Nifty SmallCap 250 index is running at a PE ratio of about 32.4 which is higher than the 5 years average PE range, indicating that valuations are stretched which suggests that investors should be cautious in the short term, as high valuations may limit near-term upside and increase vulnerability during market corrections.
For conservative investors, Jain advises that they may choose to stay away from small-cap funds given their high volatility and current elevated valuations, and instead, they can focus on large-cap funds, which are available at attractive valuations and offer more stability in uncertain markets.
On the other hand, for aggressive investors, she adds that those with a high-risk appetite and long-term horizon can consider adding small-cap funds with a proven track record to their portfolios.
'A staggered investment approach through SIPs is advisable to manage market fluctuations and reduce timing risks. While near-term caution is warranted, small-cap funds continue to offer strong long-term growth potential in India's expanding economy,' she added.
One should always choose a scheme based on risk appetite, investment horizon, and goals.
(
Disclaimer
: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
If you have any mutual fund queries, message on ET Mutual Funds on Facebook/Twitter. We will get it answered by our panel of experts. Do share your questions on
ETMFqueries@timesinternet.in
alongwith your age, risk profile, and Twitter handle.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Time of India
9 minutes ago
- Time of India
Europe finally embraces air conditioning, amid heat waves
As Europe sweats through another summer of record-high temperatures, much of the continent is undergoing a rapid and often tense transformation. Once seen as an American excess or Mediterranean necessity, air conditioning is becoming a fixture of life in places where it was long considered a luxury or even unwelcome. The shift reflects a new climate reality: Extreme heat is no longer rare across much of Europe. It's increasingly the new norm. Finance Value and Valuation Masterclass - Batch 4 By CA Himanshu Jain View Program Artificial Intelligence AI For Business Professionals Batch 2 By Ansh Mehra View Program Finance Value and Valuation Masterclass - Batch 3 By CA Himanshu Jain View Program Artificial Intelligence AI For Business Professionals By Vaibhav Sisinity View Program Finance Value and Valuation Masterclass - Batch 2 By CA Himanshu Jain View Program Finance Value and Valuation Masterclass Batch-1 By CA Himanshu Jain View Program Europe might not be prepared to cope. Power grids - many designed for milder climates - are already under strain. On the hottest days, electricity demand spikes and often outpaces what renewables can supply. Governments are now facing a tough question: how to keep their countries cool without driving up emissions or triggering blackouts. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like The Best Method for a Flat Stomach After 50 (It's Genius!) Lulutox Undo The evolution is apparent in France's Medoc region, where the city of Bordeaux hit a record-high 41.6C (106.9F) this week. Historic buildings like the Chateau Monbrison - a centuries-old wine estate - have been forced to adapt. This spring, the owners installed air conditioning - discreet Mitsubishi Compact+ units mounted against the exposed stone walls to preserve the chateau's traditional charm. Live Events The trend tracks across Europe. Cooling systems, once reserved for the most scorched parts of Italy and Spain, are an increasingly common sight further north, in places like the Netherlands and the UK. Residential AC purchases have doubled in Europe since 2010, according to Daikin Industries , one of the continent's biggest manufacturers. Electronics marketplace Galaxus recently reported record sales in Germany and Austria, and Samsung Electronics Co. is boosting its training budget in Europe for AC installations by an average of 10% each year. France has now overtaken Italy and Spain as the fastest-growing air conditioning market in Europe for Hitachi . Household AC penetration there rose to 25% by 2020, from 14% in 2016, the company said. By 2035, about half of French homes are expected to have a unit. The boom in business is anchored by a troubling fact: Europe is warming at twice the global average. Cooling degree days - or how often and how intensely buildings require cooling - have more than tripled in Paris over the past two decades, according to data from Eurostat. France's capital now experiences heat comparable to Barcelona in the late 1990s. Berlin's temperatures mirror those historically recorded in Turin. And the climate in Brussels resembles what parts of Croatia were like 25 years ago. Even countries long considered too cold for cooling are changing their ways. The market for air conditioning in Scandinavia, once tiny, is registering measurable growth. "Cooling used to be a luxury," said Simon Pezzutto, a researcher who has tracked cooling demand in Europe for over a decade. Today, "it's a commodity of primary necessity." Governments are searching for a path forward. Austria's latest national energy plan explicitly cites rising cooling demand as a risk to grid stability. France, too, has warned of future peaks during the summer because of unchecked AC use. These aren't theoretical concerns. As a heat wave gripped southern Europe in June, electricity grids in Italy buckled, leading to blackouts in several regions. "That synchronized spike in demand - sometimes compressed into a matter of hours - puts immense pressure on national grids," said Isabella Nardini, Manager of International Affairs at the Fraunhofer Research Institution for Energy Infrastructures and Geotechnologies. Part of the problem relates to consumer preferences. Many shoppers are opting for small, portable units, which are more affordable and easy to install, but less energy-efficient than other models. Globally, the International Energy Agency says that space cooling already accounts for 10% of electricity consumption in buildings, and Europe's share is only expected to rise. In response, fossil fuel plants - especially gas and coal - are increasingly fired up to meet surging demand. "Rising air conditioning use is propping up fossil fuel generation during times when renewables underperform," said Sabrina Kernbichler, lead power analyst at Energy Aspects. Even if Europe's needs are met, adapting the continent's aging building stock poses another logistical challenge. Many older homes were designed to retain heat. That's an advantage in winter, but a problem in today's longer, hotter summers. Every year, only about 1% of buildings are renovated.


Time of India
19 minutes ago
- Time of India
PCMC launches ‘participatory budget', citizens' suggestions under initiative led to Rs136 crore allocation last year
Pune: Pimpri Chinchwad Municipal Corporation (PCMC) has announced that it will continue its participatory budget initiative for 2026–27 fiscal following its successful implementation in 2025–26 budget. Under the scheme, citizens can propose development works to be included in the budget. According to a senior PCMC official, the civic body had received 2,279 proposals last year from its eight zones. After detailed technical scrutiny, 786 were approved, and 499 of them received funding. While Rs 94.86 crore was initially reserved for the initiative, the final allocation reached Rs136.98 crore, exceeding the earmarked amount. Punawale, Tathwade, Wakad, and Pimple Saudagar were among the areas that received the highest allocation under the initiative last year, with funding amounting to Rs43.88 crore. You Can Also Check: Pune AQI | Weather in Pune | Bank Holidays in Pune | Public Holidays in Pune | Gold Rates Today in Pune | Silver Rates Today in Pune Under the initiative, residents can propose works worth up to 10% of property tax revenue generated from their zone. Residents can submit their suggestions via PCMC website or in person at their local ward office, with the submission window opening on Aug 15. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like The Secret Lives of the Romanovs — the Last Rulers of Imperial Russia! Learn More Undo The aim is to boost public involvement, ensuring that projects in each locality address genuine community needs and receive appropriate funding, a PCMC official said. Civic officials said most of the initiative's funds were directed towards road development, stormwater system upgrades, waste management, footpath construction, and park enhancements. In certain areas, unique local priorities were also witnessed, such as installing CCTV cameras for public safety in Zones A and F, building urban street design-compliant footpaths in Thergaon, and developing a railway overpass in Pimpri Gaon, the official added. Municipal commissioner Shekhar Singh said, "Last year's projects are living proof that citizen inputs lead to results residents value most." Stay updated with the latest local news from your city on Times of India (TOI). Check upcoming bank holidays , public holidays , and current gold rates and silver prices in your area.


Time of India
20 minutes ago
- Time of India
Retd bank manager loses Rs30L in ‘high-return' fraud
Pune: Cybercrooks cheated a retired manager (82) of a district cooperative bank from Dhankawadi out of Rs 30.45 lakh by promising him handsome returns on his investment in the online trading of stocks between Dec last year and Feb. The victim lodged a complaint application to the Pune cybercrime police. After verification, a formal FIR was registered with the Sahakarnagar police station on Tuesday. Senior inspector Vitthal Pawar of Sahakarnagar police told TOI, "The victim stays with his son at Dhankawadi. His nephew is a share trader. The elderly keeps watching videos on different subjects. He saw a video on share trading where the presenter was speaking on how to generate good profit," Pawar said. You Can Also Check: Pune AQI | Weather in Pune | Bank Holidays in Pune | Public Holidays in Pune | Gold Rates Today in Pune | Silver Rates Today in Pune "The video also provided link to an online share trading software in the description. The victim downloaded the application. As soon as he entered his phone number, his phone number was added to a messaging group, where members were discussing profit generated by trading shares online. The members always thanked the group admin for his tips," Pawar said. "The victim was lured to contact the group admin after seeing all the chatting. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Get Rewards for Trading Vantage Markets IN Register Undo The victim sought admin's help in trading shares. The victim started buying shares of lesser value, and the group admin offered to help him buy high-value shares for alleged better profit generation," he said. "The group admin then shared six different bank account numbers with the victim and the victim transferred money," he said. "The online application showed a good profit. The victim, however, could not sell the shares. The cybercrooks kept demanding more money for letting him sell the shares. The victim discussed the issue with his nephew. His nephew saw the application and informed him that it was a fake application," he said. Stay updated with the latest local news from your city on Times of India (TOI). Check upcoming bank holidays , public holidays , and current gold rates and silver prices in your area.