SBI Nifty Smallcap 250 Index Reg Gr

Diversified

Equity

India Micro Cap

Others

Small Cap

Empty

1–7 yearsInvestment Horizon

Empty

What This Strategy Does

SBI Nifty Smallcap 250 Index Reg Gr is an equity fund which captures India's ₹12 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 participate in market upside while mitigating downside risk.

Differentiated Construction

With a distinct mid-cap tilt and overweight exposure to industrials and financials, the fund's construction differs from peers, reflecting a conviction in the earnings potential of quality franchises benefiting from structural growth trends.

Valuation Opportunity

Trading at a discount to historical averages, the fund offers an attractive entry point for investors seeking exposure to a high-quality portfolio of companies poised to benefit from an anticipated capex revival cycle.

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 Reg Gr

Benchmark Index

Benchmark Performance Comparison

Sbi Nifty Smallcap 250 Index Fund

NIFTY 50

Risk Profile

Standard Deviation22.5%

Maximum Drawdown-25.0% | Oct 2024

Sharpe Ratio0.32

Detailed Risks

Market Risk

Potential recession or demand contraction could disproportionately impact small-cap stocks, triggering underperformance.

Liquidity Risk

Volatility spikes or market stress could impair small-cap liquidity, hindering rebalancing.

Concentration Risk

Concentrated small-cap exposure amplifies sector risks like regulatory changes impacting key holdings.

Specific Strategy Risk

Underperformance risk if small-caps underdeliver earnings or face competitive pressures.

Strategy Details

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

Core Investment Theme

Provides exposure to India's entrepreneurial energy before institutional capital discovers it. Small caps offer the highest growth potential but demand patience through volatility cycles.

Broader Market View

Market Outlook

Equity markets appear to be entering a mid-cycle phase, with an attractive entry point emerging after the recent valuation correction. Macro tailwinds such as consumption recovery, earnings normalization, and capex revival, particularly in consumer, financial services, and technology sectors, present opportunities aligned with the fund's exposure.

Why This Strategy is Attractive Now

This strategy seems well-positioned to capitalize on the current environment, with a balanced portfolio of around 70 holdings diversified across consumer cyclicals, defensives, financials, and technology. The presence of market leaders in these sectors, coupled with moderate beta and flexibility, suggests a risk-adjusted approach aligned with mid-cycle dynamics.

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 long-term prospects.

Why it Makes Sense

In the current environment of moderating economic growth and elevated uncertainty, a Quality Growth strategy appears well-positioned to capitalize on secular trends while providing a degree of defensive characteristics.

High-Level Investment Process

Sourcing: The strategy appears to source investment ideas from a broad universe of quality companies, potentially emphasizing those with sustainable competitive advantages, strong balance sheets, and attractive growth runways. Selection: The selection process suggests a preference for companies with durable business models, consistent profitability, and reasonable valuations relative to their growth prospects and quality characteristics. Construction: Portfolio construction is consistent with a diversified, conviction-weighted approach, potentially aiming to balance risk exposures while allowing higher-conviction ideas to contribute more meaningfully to overall performance.

Portfolio Holdings Overview

SectoralAllocation

Financial Services20.63%

Consumers17.53%

Capital Goods31.79%

Utilities2.19%

Energy & Infra3.62%

Services15.22%

Technology9.01%

Geographic Allocation

Domestic100%

Top Stock Holdings

CompanySectorAllocation

Sona BLW Precision Forgings LtdConsumers1.65%

Ather Energy LtdConsumers1.49%

Karur Vysya Bank LtdFinancial Services1.49%

Navin Fluorine International LtdCapital Goods1.45%

Welspun Corp LtdCapital Goods1.42%

Piramal Finance LtdFinancial Services1.26%

Delhivery LtdCapital Goods1.16%

HFCL LtdTechnology1.16%

Central Depository Services (India) LtdFinancial Services1.13%

RBL Bank LtdFinancial Services1.07%

Operational & Regulatory Details

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

Costs and Fees

Total Expense Ratio (TER)0.86%

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)