Investing in mutual funds can feel overwhelming. With so many options, how do you know what’s right for you? One fund that’s gaining serious attention among small-cap investors is mutf_in: sbi_smal_cap_my8974. This article will help you understand what this fund is, how it performs, what risks are involved, and who it’s best suited for.
Let’s break it all down.
What is mutf_in: sbi_smal_cap_my8974?
mutf_in: sbi_smal_cap_my8974 is a small-cap mutual fund managed by SBI Mutual Fund, one of India’s leading asset management companies. This fund invests primarily in companies with small market capitalizations—firms that are generally young, fast-growing, and full of potential.
Here’s what makes it stand out:
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Fund Type: Open-ended equity fund.
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Focus: Small-cap stocks.
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Benchmark: S&P BSE 250 SmallCap Index.
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Fund Manager: Managed by a team of experienced professionals from SBI AMC.
This fund targets aggressive investors who are looking for high returns over a long-term horizon and can handle the volatility that comes with small-cap stocks.
Key Features and Objectives of the Fund
Let’s explore the core objectives and features of this fund so you know what you’re getting into.
1. Wealth Creation through Small Caps
The main aim of mutf_in: sbi_smal_cap_my8974 is capital appreciation. Small-cap stocks are considered risky but rewarding. Over time, many of these companies evolve into mid or even large-cap giants.
2. Long-Term Investment Strategy
This isn’t a short-term play. The fund is meant for investors willing to stay invested for 5 years or more. The longer your investment horizon, the better the chances of riding out market volatility.
3. Diversification Across Sectors
To reduce risk, the fund diversifies investments across sectors like:
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Information Technology
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Pharmaceuticals
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Consumer Goods
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Infrastructure
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Financial Services
This cross-industry approach helps balance out sector-specific downturns.
Performance Analysis: Returns Over Time
Analyzing past performance is critical, even if it doesn’t guarantee future returns. Let’s look at how mutf_in: sbi_smal_cap_my8974 has done over various periods.
| Time Period | Returns (%) | Benchmark Returns (%) |
|---|---|---|
| 1 Year | 38.2 | 34.5 |
| 3 Years (CAGR) | 27.5 | 24.9 |
| 5 Years (CAGR) | 23.3 | 20.1 |
| Since Inception | 21.6 | 18.7 |
Takeaway: The fund has consistently outperformed its benchmark. That’s a good sign for long-term investors.
Top Holdings and Sector Allocation
Understanding where your money goes is vital. Here’s a snapshot of the top holdings and how much of the fund is invested in each sector.
Top 5 Holdings
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Blue Star Ltd. – HVAC and refrigeration
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K.P.R. Mill Ltd. – Textiles and garments
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Cyient DLM Ltd. – Technology
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J.B. Chemicals & Pharma – Pharmaceuticals
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Cera Sanitaryware Ltd. – Consumer products
Sector Allocation
| Sector | Allocation (%) |
|---|---|
| Industrials | 22% |
| Consumer Discretionary | 18% |
| IT & Electronics | 16% |
| Healthcare | 15% |
| Chemicals | 13% |
This diversified spread ensures that poor performance in one industry doesn’t drag the whole portfolio down.
Risk Factors: What You Should Know
No investment is risk-free. Especially not small-cap funds.
1. High Volatility
Small-cap stocks tend to swing wildly. Market news, regulation changes, or company earnings can cause major up or down shifts in short periods.
2. Liquidity Concerns
Some of the companies in the portfolio might not be traded frequently. Selling large holdings could impact their prices.
3. Long Recovery Time
If the market dips, small-cap funds typically take longer to recover than large-cap funds.
Despite these risks, mutf_in: sbi_smal_cap_my8974 offers excellent growth potential for those who can handle the ups and downs.
Who Should Invest in This Fund?
This isn’t a “one-size-fits-all” solution. Here’s who this fund is ideal for:
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Young Investors: You have time to ride out market volatility and gain from compounding.
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Aggressive Risk Takers: You’re okay with temporary losses if it means long-term growth.
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Diversifiers: You already invest in large/mid-cap funds and want to broaden your equity portfolio.
If you’re nearing retirement or need your investment in the short term, this fund may not be suitable for you.
How to Invest in mutf_in: sbi_smal_cap_my8974
Getting started is easy. Here are a few ways you can invest:
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Directly through SBI Mutual Fund website
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Via online platforms like Groww, Zerodha Coin, Paytm Money, etc.
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Through your bank or a registered financial advisor
Investment Options:
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Lump sum: One-time investment.
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SIP (Systematic Investment Plan): Regular monthly investment (starting as low as ₹500/month).
SIP is recommended for most retail investors as it helps average out market volatility.
Taxation on Returns
Like all equity funds, mutf_in: sbi_smal_cap_my8974 is taxed as follows:
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Short-Term Capital Gains (STCG): 15% (if redeemed within 1 year)
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Long-Term Capital Gains (LTCG): 10% on gains over ₹1 lakh per year (if held for more than 1 year)
Keep these tax rules in mind when planning your redemptions.
Comparison with Other Small-Cap Funds
Here’s how this fund stacks up against some of its peers:
| Fund Name | 5-Year CAGR | Expense Ratio |
|---|---|---|
| SBI Small Cap Fund | 23.3% | 0.90% |
| Nippon India Small Cap Fund | 21.1% | 0.78% |
| Axis Small Cap Fund | 19.6% | 0.88% |
| HDFC Small Cap Fund | 20.5% | 0.85% |
mutf_in: sbi_smal_cap_my8974 stands out for its consistent returns and experienced fund management.
Expert Opinions and Investor Sentiment
Market experts and financial advisors often recommend this fund to young, long-term investors. It has received high ratings from agencies like:
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Morningstar: 4 out of 5 stars
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CRISIL: Rank 1 among small-cap funds
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Value Research: 5-star rating for long-term performance
Investors praise the fund’s clarity in stock selection, especially in companies with solid financials and strong growth prospects.
Conclusion
In summary, mutf_in: sbi_smal_cap_my8974 is a well-managed, top-performing small-cap mutual fund. It’s ideal for investors who:
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Want long-term growth
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Are okay with higher risk
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Seek diversification beyond large and mid-cap funds
With a clear strategy, proven performance, and strong fund management, this fund remains a compelling option for aggressive investors.
FAQs About mutf_in: sbi_smal_cap_my8974
1. Is this fund good for first-time investors?
Not really. First-time investors may be better off with large-cap or balanced funds. This fund is for those who can handle risk.
2. Can I pause or stop my SIP in this fund?
Yes, you can pause or cancel your SIP at any time without any penalties.
3. Is the NAV too high to invest now?
NAV (Net Asset Value) doesn’t determine value. What matters is the fund’s potential for future growth.
4. How often does the fund portfolio change?
The fund manager actively reviews the portfolio quarterly to adjust for market trends.
5. Where can I track the latest updates on mutf_in: sbi_smal_cap_my8974?
You can find real-time data and performance metrics on SBI Mutual Fund’s official website or platforms like MoneyControl and Groww.
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