SBI Nifty Smallcap 250 Index Fund

Diversified

Equity

India Micro Cap

Others

Small Cap

Empty

1–7 yearsInvestment Horizon

Empty

What This Strategy Does

SBI Nifty Smallcap 250 Index Fund Regular Growth is an equity fund which captures India's ₹25 trillion small-cap opportunity through passive indexing, deploying capital across industrials, financials, and consumer sectors to achieve broad-based earnings growth.

CW Expert Research Notes

Consistent Participation

The fund has demonstrated resilient benchmark-relative behavior, outperforming in 10 of the past 12 years, highlighting its ability to consistently capture upside participation across market cycles.

Differentiated Construction

The fund's construction deviates from traditional market-cap weighted approaches, expressing conviction through overweights in industrials and financials, complemented by select exposure narratives like Divi's Laboratories in healthcare and Trent in consumer cyclicals.

Structural Tailwinds

With a valuation profile in line with historical norms, the fund is well-positioned to capitalize on structural growth drivers underpinning the small-cap universe, including rising capital expenditure and positive earnings revisions.

Performance and Risk Analysis

Historical returns, volatility patterns, and how this fund has performed relative to its benchmark.

Fund Performance

0.0% AnnuallyAlpha

+0.0% vs +0.0% benchmarkSince Inception

+0.0% vs +0.0% benchmark3Y Annualized

+0.0% vs +0.0% benchmark5Y Annualized

SBI Nifty Smallcap 250 Index Fund

Benchmark Index

Benchmark Performance Comparison

Sbi Nifty Smallcap 250 Index Fund

NIFTY 50

Risk Profile

Standard Deviation23.6%

Maximum Drawdown-25.0% | Oct 2024

Sharpe Ratio-0.10

Detailed Risks

Market Risk

Prolonged economic slowdown could dampen consumer demand, impacting small-cap earnings.

Liquidity Risk

Elevated volatility or redemptions may strain liquidity for small-cap holdings.

Concentration Risk

High small-cap tilt exposes fund to sector-specific risks like industrials downturn.

Specific Strategy Risk

Regulatory changes impacting small-caps could disrupt strategy's index-tracking ability.

Strategy Details

A closer look at the investment thesis, portfolio construction, and current holdings.

Core Investment Theme

Provides concentrated exposure to India's dynamic small-cap universe—companies poised to become tomorrow's market leaders. This high-growth segment captures the nation's entrepreneurial energy before institutional capital discovers it.

Broader Market View

Market Outlook

Equity markets appear to be entering a mid-cycle phase, with attractive valuations following the recent correction. Consumption recovery, earnings normalization, and capex revival are expected to drive performance, favoring sectors like consumer discretionary, financials, and industrials. However, risks such as margin pressures and cyclicality warrant a balanced approach.

Why This Strategy is Attractive Now

This strategy seems well-positioned for the current environment, with exposure to consumer cyclicals, financials, and technology. The portfolio's diversification across approximately 70 holdings, including market leaders, could provide a balance of growth and stability. Moderate beta and flexibility may allow for risk-adjusted participation in the market's upside potential.

Investment Style & Process

Investment Style

The portfolio exhibits characteristics of a Quality Growth approach, emphasizing companies with durable competitive advantages, consistent earnings growth, and reasonable valuations relative to their growth prospects.

Why it Makes Sense

In the current environment of moderating economic growth and elevated uncertainty, a Quality Growth strategy focused on companies with pricing power, recurring revenue streams, and strong balance sheets can provide a degree of defensiveness while participating in secular growth opportunities.

High-Level Investment Process

Sourcing: The strategy appears to source investment ideas from a broad universe of companies across market capitalizations and sectors, with a focus on those demonstrating sustainable competitive advantages, strong management teams, and attractive growth runways. Selection: The selection process suggests a preference for companies with durable business models, consistent profitability, healthy balance sheets, and reasonable valuations relative to their growth prospects and quality characteristics. Construction: The portfolio construction process is consistent with a diversified, conviction-weighted approach, with position sizes reflecting the manager's assessment of risk-adjusted return potential while adhering to risk management guidelines.

Portfolio Holdings Overview

SectoralAllocation

Financial Services20.84%

Consumers16.23%

Capital Goods33.2%

Utilities2.96%

Energy & Infra3.56%

Services15.29%

Technology7.93%

Geographic Allocation

Domestic100%

Top Stock Holdings

CompanySectorAllocation

Karur Vysya Bank LtdFinancial Services1.39%

Sona BLW Precision Forgings LtdConsumers1.37%

Delhivery LtdCapital Goods1.31%

Navin Fluorine International LtdCapital Goods1.26%

Piramal Finance LtdFinancial Services1.21%

Central Depository Services (India) LtdFinancial Services1.14%

RBL Bank LtdFinancial Services1.02%

Angel One Ltd Ordinary SharesFinancial Services1.00%

PNB Housing Finance LtdFinancial Services0.99%

City Union Bank LtdFinancial Services0.98%

Operational & Regulatory Details

What it costs to invest, transaction mechanics, and regulatory disclosures you should know.

Costs and Fees

Total Expense Ratio (TER)0.84%

Exit Load0.25

Regulatory & Tax Information

INF200KA13P9

ISIN

DailyDealing Frequency

LTCG | >1Year 12.5%% on gain above 1.25 Lakh

STCG | <1Year 20%%

Tax Implications (India)