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SBI Small and Midcap Fund

Nature of fund:

Open-ended equity scheme.

Investment objective:

The scheme seeks to generate income and long term capital appreciation by investing in a diversified portfolio of predominantly equity and equity related securities of small & midcap companies.

Fund information:

Inception date 9th September, 2009.
CRISIL rank Not ranked.
Plans

•Regular.

•Direct.

Options

•Growth.

•Dividend.

Schemes

•SBI Small and Midcap Regular Growth Fund.

•SBI Small and Midcap Regular Dividend Fund.

•SBI Small and Midcap Direct Growth Fund.

•SBI Small and Midcap Direct Dividend Fund.

Entry load None.
Exit load

•For exit within 1 year from the date of allotment = 1.00%.

•For exit after 1 year from the date of allotment = 0.

Minimum investment

•Rs.5,000 (in multiples of Re.1).

•Additional Investment: Rs.1,000 (in multiples of Re.1).

SIP Monthly

•Minimum Rs.1000 (in multiples of Re.1) thereafter for minimum six months.

•Minimum Rs.500 (in multiples of Re.1) thereafter for minimum one year.

Quarterly

•Minimum Rs.1500 (in multiples of Re.1), thereafter for minimum one year.

Product label – Risk and target investors Moderately High Risk. Target investors are those who seek:

•Long term capital growth.

•Investment in diversified portfolio predominantly in equity and equity-related securities of small & midcap companies.

Benchmark S&P BSE Small Cap Index

BSE’s new index series called 'S&P BSE MID Cap' index and 'S&P BSE Small Cap' index is used to track the performance of companies with relatively smaller market capitalization.

S&P BSE-500 Index - represents more than 93% of the listed companies with large market capitalization that influence the movement of the S&P BSE 500 index. This made necessary the construction of a separate indicator to capture the trend in companies with lower market capitalization. Thus, the S&P BSE Mid Cap and S&P BSE Small Cap indices were formed and have proven to be a great utility to the investing community.

SWP Yes.

•Minimum Rs.500/- can be withdrawn every month or quarter by indicating in the application form or by issuing advance instructions to the Registrar at any time.

•Investors must indicate the month and year from which SWP should commence along with the frequency.

•SWP will be processed on 1st working day of every month / quarter.

•Payment will be credited to the registered bank mandate account of the investor through Direct Credit or 40 cheques would be issued.

•SWP entails redemption of certain number of Units that represents the amount withdrawn. Thus it will be treated as capital gains for tax purposes.

STP Yes.

•STP is a combination of systematic withdrawal from one scheme and systematic investment into another scheme.

•The minimum amount of withdrawals applicable under SWP would be applicable to STP also.

•Similarly the minimum investment applicable for each scheme under SIP will be applicable to STP also.

•STP facility will allow investors to transfer a predetermined amount or units from one scheme of the Mutual Fund to the other.

•Completed application form for STP should be submitted at least 7 days before the transaction date.

•The transfer would be effected on any business day as decided by the investor at the time of opting for this facility.

Redemption

•Minimum redemption size (non-SWP/STP) = Rs.1,000 or 100 Units or account balance (whichever is lower).

•Redemption time – 3 days.

Taxation (on investment and on redemption) The tax implications of being associated and invested in this mutual fund must be thoroughly and in no uncertain terms discussed with your tax advisor.

Fund manager

Mr. R. Srinivasan

Mr. R. Srinivasan is a qualified financial manager, having successfully completed his M.com and Masters in Financial Management. With over 20 years of experience in equities, joining SBI Funds Management Pvt. Ltd., Srinivasan was his most recent step after being associated with Future Capital Holdings, the erstwhile asset management and financial services entity of the Future Group, where he headed ‘Public Markets’. He has also worked with several organizations including Principal PNB AMC, Imperial Investment Advisors (associate of Oppenheimer & Co), Indosuez W. I. Carr Securities, Motilal Oswal Securities, Sunidhi Consultancy and Capital Market Publishers. Presently, Srinivasan is the Fund Manager for SBI Magnum Equity Fund, SBI Magnum Global Fund, SBI Magnum Balanced Fund (jointly with Dinesh Ahuja).

Investment philosophy

  • The primary investment strategy of the fund is to invest in the stocks of small & midcap companies.
  • A small portion will be invested in large cap stocks and debt & money market securities.
  • Stocks will be selected on the basis of bottom-up & top-down approach.

Portfolio – Top 10 Holdings

Equity Sector Percentage of AUM
Relaxo Footwear Ltd. Consumer Non-durables 7.94
MRF Ltd. Automotive 5.88
D-Link (India) Limited Miscellaneous 5.75
Indian Terrain Fashions Ltd. Manufacturing 5.61
Sun Pharmaceutical Industries Limited Pharmaceuticals 4.94
Orient Refractories Ltd. Cement and Construction 4.91
Nesco Ltd. Conglomerates 4.72
Alembic Pharmaceuticals Ltd. Pharmaceuticals 4.72
Solar Industries India Ltd. Chemicals 4.37
Hawkins Cookers Ltd. Consumer Durables 4.32

Risk measures:

Sharpe Ratio 1.71
Alpha N/A
Beta 0.64
Standard deviation 16.57%

Performance

AUM (as on 30th June, 2015) Rs.354.08 crores.
NAV (as on 1st September, 2015)

•SBI Small and Midcap Regular Growth Fund = 30.6160.

•SBI Small and Midcap Regular Dividend Fund = 23.0258.

•SBI Small and Midcap Direct Growth Fund = 31.4028.

•SBI Small and Midcap Direct Dividend Fund = 27.2772.

Returns and benchmark comparison years years
Date Scheme returns S&P BSE 100 Index
Since Inception (till 30th June, 2015) 18.5167 8.5017
1 year 80.4729 85.3926
3 30.1634 16.1413
5 19.9803 9.1302
Expenses
Slab Rates SBI Small and Midcap Fund expenses as a % of daily net assets
First 100 crores 2.70%
Next 300 crores 2.45%
Next 300 crores 2.20%
Balance Assets 1.95%

Expert view of the fund + outlook

This is a moderately high risk fund, useful for those with a good risk appetite. As always, investment experts strongly advise against using more than 30% of your investment portfolio in one investment and this hold true here as well. Not very advisable as a first investment, but this again depends on every person’s individual ability to bear risk. Also consider that the fund has not been rated by CIRISL, it’s better to wait until a rating has been established.

How to apply – online + distributors

You can apply online through the SBI mutual fund website, or alternatively call the SBI mutual funds office. You can also physically walk in to the SBI branch and fill up your KYC forms after which you will be directed on how to invest through the mutual funds investment desk at the branch. There’s a 24/7 dedicated toll free number you can call, and you can also send an SMS showing your intent to invest. All these details of the number to call or SMS can be found on the SBI mutual funds website. You can also contact any one of SBI’s Investor Service Centres.

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GST rate of 18% applicable for all financial services effective July 1, 2017.

Display of any trademarks, tradenames, logos and other subject matters of intellectual property belong to their respective intellectual property owners. Display of such IP along with the related product information does not imply BankBazaar's partnership with the owner of the Intellectual Property or issuer/manufacturer of such products.

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