Fund Review : SBI Small Cap : Grow Wealth Advisors
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Category:
Small Cap
Assets:
Rs 836 Crores (as on 30 April 2018)
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Performance
Source: SBI Mutual Fund
As on 30th April 2018
Investment Objective
To provide investors with
opportunities for long-term growth in capital along with the liquidity of an open-ended
scheme by investing predominantly in a well diversified basket of equity stocks
of small cap companies.
Investment Strategy
The scheme follows a blend
of growth and value style of investing. The scheme will follow a bottom-up
approach to stock-picking and choose companies within the small cap
space.
This fund is one of the most
consistent and yet least researched small cap fund available for retail
investors. This is because since last 2.5 years this fund was closed for
subscription for new investors. In hindsight it proved to be a great decision
as the Fund Manager could focus on long term wealth maximization based on
available corpus. This fund has given annualized return of more than 36% in
last 5 years which is HUGE by any yardstick. Also as can be seen in table above
SBI Small Caps has been a consistent performer over a long period of time.
Since its inception it has given annualized returns of almost 23% which is far
higher than the benchmark.
Another factor that has and
we believe will work in favor of this fund is its Fund Manager Mr. R
Shrinivasan has been managing this fund since November 2013. This long
association has given stability to fund in terms of investing philosophy.
Fund Manager Background
Mr. R. Srinivasan serves as
the Head of Equity and Senior Fund Manager of Equity at SBI Funds Management
Private Limited since June 2011 and May 2009, respectively. Mr. Srinivasan has
worked with Future Capital Holding, Principal PNB, Blackstone, and Motilal
Oswal, among others.
Asset Allocation Pattern
This fund has mandate of investing minimum 80% of its
assets in small caps. Small Cap means 251st company onwards in terms of full
market capitalization.
Source: SBI Mutual Fund
Other equity / equity related instrument means Large Cap stocks
REIT : Real Estate Investment
Trust
InvITs : Infrastructure Investment Trust
Sectoral allocation
Performance Tracker
Summary
This fund has been a
consistent performer over last many years and has beaten benchmarks by a wide
margin. The fund manager has been managing this fund for almost 4 years now
giving stability in terms of vision is concerned. The fund is open for
subscription only in form of Systematic Investment Plan (SIP) of upto Rs 25000
per month. The fund is not open for any lumpsum investment. We believe, SIP
route is better for retail investor as it helps in averaging the cost and bring
long term value creation. SIP is best suited for Small Caps Fund because of
inherent volatility as compared to small caps. We strongly recommend this fund
with a investment horizon of 5-8 years.
Please call us at 9325295502
or email us at [email protected] for
further details or you wish to invest in this plan
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