SBI Small Cap Fund Shatters Expectations: 18% Annual Returns for 15 Years! See Your Wealth Multiply!

Mutual Funds

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Updated on 12 Nov 2025, 04:29 pm

SBI Small Cap Fund has demonstrated remarkable consistency and performance, achieving an 18% annualised return over 5, 10, and 15-year horizons. It stands out as the top performer among SBI Mutual Fund's equity schemes for 10 and 15-year periods. Since its launch on September 9, 2009, the fund has generated an impressive 19.35% annualised return, turning an initial ₹1 lakh investment into approximately ₹17.42 lakh.

**Investment Strategy:** The fund primarily invests at least 65% in equity and equity-related instruments linked to small-cap stocks, with flexibility to invest up to 35% in other equities, debt, and money market instruments. It employs a bottom-up approach, blending growth and value investment styles to identify fundamentally strong companies with long-term wealth creation potential.

**Portfolio Highlights:** Key holdings include Ather Energy (3.76%), SBFC Finance (2.76%), and E.I.D.-Parry (India) (2.71%). The top sectors are Financial Services (13.40%), Capital Goods (10.87%), and Consumer Durables (9.33%).

**Impact** This fund's consistent high returns can significantly impact investors' wealth creation goals, encouraging investment in small-cap segments despite their inherent volatility. It showcases the potential for substantial growth through disciplined equity investing and fund management. The fund's success could also draw more investor attention to the small-cap sector, potentially influencing market dynamics. Rating: 8/10

**Definitions** * **AUM (Assets Under Management):** The total market value of all the assets managed by a mutual fund. (Rs 36,933 crore) * **Expense Ratio:** The annual fee charged by a mutual fund to cover its operating expenses. (Regular: 1.56%, Direct: 0.75%) * **Sharpe Ratio:** Measures risk-adjusted return; higher is better. (0.61) * **Standard Deviation:** Measures the fund's volatility or dispersion of returns. (14.29%) * **Beta:** Measures a stock or fund's volatility relative to the overall market. A beta less than 1 indicates less volatility than the market. (0.72) * **NAV (Net Asset Value):** The per-share market value of a mutual fund. (171.0455) * **Exit Load:** A fee charged when units are redeemed within a specified period. (1% if redeemed within 1 year) * **SIP (Systematic Investment Plan):** A method of investing a fixed sum of money at regular intervals.