Sbi Small Cap Fund Regular Plan Idcw Payout

About SBI Small Cap Fund – Regular Plan – IDCW Payout

SBI Small Cap Fund – Regular Plan – IDCW Payout is a mutual fund scheme offered by SBI Mutual Fund. It is an open-ended equity scheme that primarily invests in small-cap companies. The fund aims to provide investors with long-term capital appreciation by investing in a diversified portfolio of small-cap companies.

The scheme invests at least 65% of its total assets in small-cap companies, which are companies with market capitalisation lower than the 250th stock by market capitalisation on the National Stock Exchange (NSE). The remaining assets may be invested in mid-cap and large-cap companies, debt, and money market instruments.

Key Parameters

IDCW stands for Income Distribution cum Capital Withdrawal. It is a dividend option in mutual funds where a specific portion of your growth is paid out as an ‘income’. The IDCW payout option is also available for SBI Small Cap Fund (G). The SBI Small Cap Fund (IDCW) has a current Net Asset Value (NAV) of INR 65.38 for the IDCW option of its regular plan. The fund has 86.03% investment in domestic equities, of which 0.7% is in Large Cap stocks, 8.37% is in Mid Cap stocks, and 51.69% in Small Cap stocks.

• NAV: INR 65.38
• Fund size: INR 15395.39 crores as on February 28, 2023
• Expense ratio: 1.83% for the Regular plan as on February 28, 2023
• Benchmark: Nifty Smallcap 100 TRI
• Launch date: October 9, 2009
• Risk-o-meter: Moderately High

Taxation

The gains from growth options are taxed at the redemption of mutual fund units. The investor needs to pay taxes only when profits have been realised. In contrast, under the IDCW (Reinvestment) option, the reinvested income into the scheme is taxed as per the investor’s applicable tax bracket.

Holdings

The SBI Small Cap Fund – Regular Plan – IDCW Payout holdings shows the stocks and sectors the scheme has invested in. As of February 28, 2023, the scheme had 53 stocks in its portfolio, totalling INR 15590.43 Cr. The top 10 stocks accounted for 30.26% of the portfolio value. The scheme had a high exposure to small-cap stocks (50.3%) and other stocks (25.64%), followed by mid-cap stocks (8.58%) and large-cap stocks (0.43%). The top 3 sectors that the scheme invested in were household appliances (10.28%), abrasives & bearings (3.14%), and heavy electrical equipment (3.14%).

Returns

The return potential depends on various factors, such as the performance of the underlying stocks, the market conditions, the fund manager’s strategy, and the investor’s time horizon. Based on past returns, the scheme has given an absolute return of 2.68% in the last year, 34.03% in the previous two years, and 154.96% in the last three years. The scheme has also outperformed its benchmark (S&P BSE 100) and the category average (Small Cap Fund) in most periods. However, past performance is not indicative of future returns. Investors should also consider the risk involved in investing in small-cap stocks, which are more volatile and less liquid than large-cap stocks. The scheme has a high risk-o-meter rating and an expense ratio of 1.83%.

Investment Objective

The investment objective of the fund can be summarised as follows:

• Capital appreciation: The fund’s primary objective is to generate long-term capital appreciation by investing in a diversified portfolio of small-cap companies.
• Focus on small-cap stocks: The fund invests predominantly in the stocks of small-cap companies, which are companies with a market capitalisation less than or equal to the highest market capitalisation stock listed on the BSE Small Cap Index.
• Diversification: The fund follows a diversified investment strategy and invests in a mix of sectors to reduce the impact of any adverse movements in a particular sector or stock.
• Dividend payout: The fund allows investors to receive regular income through the IDCW payout option.

Minimum Investment and Lock-in Period

The minimum investment and lock-in period of SBI Small Cap Fund – Regular Plan – IDCW Payout is as follows:

• The minimum investment amount for this scheme is INR 5000 for lumpsum and INR 1000 for SIP.
• The scheme has no lock-in period, but it charges an exit load of 1% if redeemed within one year.
• The scheme pays IDCW (Income Distribution cum Capital Withdrawal) at the discretion of the fund manager, depending on the availability of distributable surplus. The last IDCW declared by the scheme was INR 3 per unit on March 31, 2021.

SBI Asset Management Company

SBI Asset Management Company (AMC) is a subsidiary of the State Bank of India (SBI) and one of India’s largest asset management companies. SBI AMC was established in 1987 and managed a wide range of mutual funds, including equity, debt, hybrid, and exchange-traded (ETFs) funds.