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Stock Analysis, IPO, Mutual Funds, Bonds & More

Should I shift to SBI Small Cap Fund?

If you have any mutual fund queries, message on ET Mutual Funds on Facebook. We will get it answered by our panel of experts.

ET Online|
Updated: Nov 06, 2019, 01.06 PM IST
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I am currently investing Rs 2,000 per month in HDFC Small Cap Fund since last one year. Compared to this fund, SBI Small Cap Fund seems to have done better in 1-year, 3-year and 5-year horizon. Can I stop my investments in HDFC Small Cap Fund and shift to SBI Small Cap Fund? My investment horizon is eight years.
-- Pavan Gadde


One year is too short to judge the performance of an equity mutual fund scheme, especially a small cap scheme. Also, your investment coincided with the time of pain in the small cap segments. The small cap space has been going through a lot of pain in the last one and a half years. Though the segment recovered marginally in the last rally in the market, it is still hasn’t got its mojo back.

Both HDFC Small Cap Fund and SBI Small Cap Fund are good funds. SBI Small Cap Fund was earlier a mid and small cap fund. It was recategorised as a small cap fund in April 2018 after Sebi’s re-categorisation exercise. HDFC Small Cap Fund is also part of our recommendation list. See: Best small cap mutual funds to invest in 2019

You may continue with your investments in HDFC Small Cap Fund. You should remember that it is not possible to invest in a scheme that would be the topper in all time periods. You should be happy if the scheme is in the top two quartiles. You should worry only if the scheme is underperforming its benchmark and category by a wide margin for a very long period.
(If you have any mutual fund queries, message us on ET Mutual Funds on Facebook. We will get it answered by our panel of experts.)
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