It’s a new series!
‘Fund of the Week’ is a new series of weekly articles from Sqrrl’s Blog. This series aims to familiarise the readers with the top performing mutual funds in the industry, covering aspects like returns, past performance, details about the fund manager, etc.. These articles are written after extremely detailed and enthusiastic research by Sqrrl’s team of writers.
We hope you’ll find these articles, and can truly understand the reason why ‘Mutual Funds Sahi Hai’.
SBI Small-cap Fund
Mr. R. Srinivasan is the fund manager since Nov 2013.
Mr. Srinivasan serves as the Head of Equity and Senior Fund Manager of Equity at SBI Mutual Fund since June 2011 and May 2009, respectively. Prior to joining SBI Mutual Fund, Srinivasan has worked with Future Capital Holding, Principal PNB, Blackstone, Indosuez WI Carr and Motilal Oswal, among others.
Mr. Srinivasan is a Post Graduate in Commerce and received a MFM degree from the University of Mumbai.
Type of Fund
An open-ended Equity Scheme predominantly investing in small cap stocks
The investment objective of the scheme is 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.
The fund manager seeks to look at five attributes in a stock while investing – competitive advantage, return on capital, growth, management and valuation.
Details about the Fund
Minimum Investment – Rs 5,000, and in multiples of Re 1 thereafter
Entry load: Not Applicable
Exit Load: 1% if redeemed on or before 1 year. Nil if redeemed after 1 year.
Investors who would like to invest with a Long-term wealth creation view.
Risk Level: Moderately High Risk
Here are the Top 3 Features of this week’s fund
- Long-term capital appreciation – The fund seeks to invest in securities that are fundamentally sound and are trading at a substantial discount to its intrinsic value. The fund is likely to outperform over the long when a business goes through a complete cycle.
- SIPs – Investors can opt in for monthly, quarterly, and semi-annual SIP. The minimum amount is Rs 1000 with maximum amount capped at Rs 25000.
- Returns – The scheme has been giving constant returns of over 36% in the five-year horizon, and hence has been in favour with new and old investors alike.
The SBI Mutual Fund has widened its margin of out-performance relative to its benchmark and its category over the last one-year period that has enabled the fund to touch the five-star category. Needless to say, the fund has shown spectacular performance over the five-year period, generating over 36% annualized returns.