SBI Small Cap Fund Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?

SBI Small Cap Fund Direct Growth Plan had a NAV of ₹215.1429 as of 24 August 2026 and a scheme AUM of ₹39,954 Cr. Its 1-year, 3-year and 5-year returns are 8.0037%, 13.3638% and 16.3011%, respectively, and the fund is classified as High Risk. Our view is that it suits investors who can tolerate sharp swings and want a small-cap allocation with a long holding horizon.

The fund has stayed close to its benchmark over the long run, but the recent 1-year return has been softer than the 3-year and 5-year run rates. That mix suggests a scheme that can compound well over time, yet still requires patience through weaker shorter stretches. The portfolio is heavily tilted to small companies, so short-term volatility is part of the journey.

Quick facts

Item	Details
NAV	₹215.1429
AUM	₹39,954 Cr
Expense Ratio	0.75%
Launch Date	01 January 2013
Min SIP	₹500
Risk Category	High Risk
Benchmark	Nifty Small Cap
Fund Category	Equity
Exit Load	1% if units are sold on or before 1 year; nil after 1 year
Fund Managers	R. Srinivasan

The fund is managed by R. Srinivasan.

Source data date: as of 24 Aug 2026

Performance

Period	Fund return	Benchmark return
1M	4.05%	3.09%
3M	11.15%	7.44%
1Y	8.00%	11.32%
3Y	13.36%	14.34%
5Y	16.30%	15.72%

Recent performance has been constructive over short windows, with the fund ahead of the benchmark in 1 month and 3 months. That is useful, but it does not fully offset the weaker 1-year number, where the fund lagged the benchmark by a noticeable margin.

Over the longer periods, the picture is steadier. The 3-year return is a little below the benchmark, while the 5-year return is slightly ahead, which tells us the fund has kept pace with the index over a full cycle rather than breaking away from it. That is consistent with a small-cap strategy that can be volatile year to year but still compounds meaningfully over time.

The recent path also suggests that the fund has recovered from choppy phases rather than moving in a straight line. The shorter-term strength versus the benchmark and the softer 1-year result point to an uneven stretch, but the 3-year and 5-year outcomes still support a balanced long-horizon reading. In our view, the fund has shown enough persistence over time to remain relevant for investors who are comfortable with fluctuations.

Against the benchmark, the fund is ahead in the 5-year frame and behind in the 1-year and 3-year frames. That split matters because it shows the fund is not consistently beating the benchmark, yet it also has not lost its ability to compound over a longer period.

Source data date: as of 24 Aug 2026

Should you BUY or HOLD SBI Small Cap?

A fund's past returns alone don't tell you whether you should buy it today or continue holding it.

The right decision depends on factors such as your current allocation, purchase price, risk profile, investment horizon and the role this fund plays in your overall portfolio.

Already holding SBI Small Cap? Thinking of investing now?

Get your portfolio analysed for FREE by SEBI-registered Investment Adviser (RIA) through Univest MF Premium

Peer comparison

Fund	1Y return	3Y return	5Y return
SBI Small Cap Fund Direct Growth Plan	8.0037%	13.3638%	16.3011%
TRUSTMF Small Cap Fund Direct Growth Plan	32.6827%	Data not available	Data not available
Bank of India Small Cap Fund Direct Growth Plan	27.445%	23.7121%	21.8824%
Motilal Oswal Small Cap Fund Direct Growth Plan	23.9841%	Data not available	Data not available
Union Small Cap Fund Direct Growth Plan	23.69%	19.8355%	19.2396%
ITI Small Cap Fund Direct Growth Plan	21.7811%	26.6511%	20.5897%

This assessment is prepared by Uniapps Investment Adviser Pvt. Ltd. under SEBI Registered Investment Adviser registration INA000017639.

The fund’s 1-year return is well below the strongest figures in this group, while its 3-year and 5-year returns are more moderate than the better long-run outcomes shown by some peers with available histories. That means the fund’s shorter-term momentum looks weaker than several peers, even though its longer-term record remains usable.

The peer set tells two different stories. On the one hand, some peers have delivered stronger recent gains over 1 year. On the other hand, the fund’s 5-year return is still competitive with a few peers that have complete longer-term records, which supports the case for evaluating it on a full-cycle basis rather than only on the latest year.

For investors comparing small-cap schemes, the main question is whether they want stronger recent performance or a steadier long-run compounding profile. This fund appears more aligned with the second style, though still within a high-volatility category.

Source data date: as of 24 Aug 2026

Portfolio: where your money goes

Market-cap bucket	Weight
Large cap	1.02%
Mid cap	8.72%
Small cap	78.37%
Other cap	11.89%

Sector	Weight	Key holdings
BANK	14.28%	CITY UNION BANK LTD. (11.37%), KOTAK MAHINDRA BANK (1.68%)
AUTOMOBILE & ANCILLARIES	11.24%	ZF COMMERCIAL VEHICLE CONTROL SYSTEMS INDIA LTD. (5.92%), WABCO INDIA LTD. (1.79%)
FINANCE	8.34%	ANANDRATHI WEALTH LTD. (3.04%), SBFC FINANCE LTD. (1.66%)
CASH & CASH EQUIVALENTS AND NET ASSETS	6.76%	TREPS (6.87%)
DOMESTIC EQUITIES	6.63%	ATHER ENERGY LTD. (3.17%), BELRISE INDUSTRIES LTD. (1.38%)

The portfolio is clearly built around small companies, with 78.37% in small cap and only 1.02% in large cap. That tells us the fund’s behaviour is likely to stay much closer to the small-cap cycle than to a blended multi-cap style. The 11.89% in other cap and 8.72% in mid cap add some diversification, but they do not change the core profile.

Among the visible sectors, BANK at 14.28% is materially larger than the next sector, AUTOMOBILE & ANCILLARIES at 11.24%. FINANCE at 8.34% follows after that, so the gap between the top two sectors is meaningful but not extreme. This is not a highly fragmented sector mix, and the larger weights suggest that a few industry moves may have a noticeable effect.

Bank exposure may have the greatest influence on portfolio behaviour because it is the largest sector weight and one of the bigger individual positions is CITY UNION BANK LTD. at 11.37%. Automobile and finance may also matter, but the bank sleeve is the clearest driver within the visible sector list. That concentration is still consistent with a small-cap scheme, but it reinforces the need for patience.

Source data date: as of 24 Aug 2026

Who should invest

This fund suits investors who are comfortable with High Risk exposure and can stay invested for a long horizon. The 1-year return has lagged the benchmark, while the 3-year and 5-year figures show that the fund can still compound reasonably over time. That makes it more suitable for patient investors than for anyone who wants smooth short-term results.

The trade-off is clear: the fund offers meaningful small-cap participation, but the portfolio is heavily tilted to smaller companies, so volatility can be sharp. Investors who want exposure to the small-cap segment and can tolerate uneven year-to-year outcomes may find the structure understandable, while those looking for more stable near-term behaviour may find the ride uncomfortable.

Tax and exit load

Holding period	Tax rate	Description
Units held less than 1 year	20%	Short-term capital gains tax
Units held more than 1 year	12.5%	Long-term capital gains tax

Exit load: 1% if units are sold on or before 1 year; nil after 1 year.

Source data date: as of 24 Aug 2026

Frequently asked questions

What is the current NAV of SBI Small Cap Fund Direct Growth Plan?

The NAV is ₹215.1429 as of 24 August 2026.

What are the 1-year, 3-year and 5-year returns?

The fund’s 1-year, 3-year and 5-year returns are 8.0037%, 13.3638% and 16.3011%, respectively.

How does it compare with the benchmark?

It is slightly ahead of the benchmark over 5 years, but below it over 1 year and 3 years. The short-term picture is stronger than the 1-year result suggests, while the long-term picture remains broadly close to the benchmark.

What is the minimum SIP amount?

The minimum SIP amount is ₹500.

What is the risk category of this fund?

The fund is in the High Risk category. Its small-cap allocation and sector mix can lead to sharp swings, so it is better suited to investors who can handle volatility.

What is the exit load and who manages the fund?

The exit load is 1% if units are sold on or before 1 year, and nil after 1 year. The fund is managed by R. Srinivasan.

Bottom line

SBI Small Cap Fund Direct Growth Plan has a mixed but understandable profile: the latest 1-year return is softer than its longer-run numbers, yet the 3-year and 5-year figures still show credible compounding in a high-volatility category. Compared with peers, its shorter-term return is weaker than several schemes, while its longer-term record remains relevant. The portfolio is dominated by small caps, with BANK as the largest visible sector, so investors need to accept volatility and a long holding horizon.

Published on 25 August 2026 at 12:18 PM IST

Explore mutual funds with Univest

Review mutual fund data, compare performance and explore fund insights on Univest.

Explore Univest

RIA disclosure

Mutual fund investments are subject to market risks. Read all scheme-related documents carefully before investing. This review is prepared by Uniapps Investment Adviser Pvt. Ltd. (earlier known as Uniapps Global Research Pvt. Ltd.) under SEBI Registered Investment Adviser registration INA000017639 for general informational purposes and is not personalized investment advice.