Mumbai: In October 2015
SBI smallcap and midcap fund had stopped it's subscription for nes
Now it will be opened
for investment form May 16. This investments will be accepted in the
form of SIP (systematic investment plan) only. In the current
scenario the fund is renamed as SBI smalllcap fund. As per the new
rules of Securities and Exchange Board of India (SEBI),
recategorization of mutual funds is expcected. Now small cap fund has
to be invest in companies beyond the 251st ranking as per market
capitalisation. As per these new rules this fund will be able to
invest in higher number (almost 150 more stocks) of companies.
Currently the fund is
managed by R Shrinivasan with the assets of 770 crores. This fund is
one of the best performing small cap fund.In the recent past it has
given remarkable returns. In one year 35.2 per cent and in five years
around 31.58 percent of returns have been delivered by this fund.
Small cap and midcap funds have generated exceptionally well returns
in the recent past.
investors were pouring money in this category.Which made very
difficult to these funds to handle the corpus. Also the valuation were
too high with lower investment opportunities.
In current scenario
fund can manage the invest inflow with higher options available for
investments. Many other mutual funds which fall in the same category
had suspended the subscription for new investors. SBI small cap is the
first fund in this category among the other funds to reopen the