SBI mutual fund is one of India's oldest and largest mutual funds set up under the Trust Act 1882 by the SBI Mutual Fund Trustee Company Private Limited.

It is a joint venture between the SBI and Amundi, a reputable asset management company based in France. SBI Mutual Fund offers several equity schemes; many of these have delivered consistently good returns.

Small cap mutual fund

Small cap mutual funds are considered a high-growth potential scheme. However, they are also considered a scheme that carries a very high risk, significant volatility, and lower liquidity, according to various financial experts. Therefore, it is often recommended to have a long-term horizon (5+ years) to mitigate these risks. However, we bring to you the SBI small cap mutual fund that offered an attractive CAGR in 15 years with a monthly SIP of Rs 10,000 growing to nearly Rs 1 crore over this period. Take a look.

Read more: Large cap mutual funds: Rs 1 lakh turned into Rs 4 lakh! Schemes exceeding over 13% CAGR in 10 years - LIST

SBI Small Cap Mutual Fund: Outperformed total return index

SBI Small Cap Fund Benchmark is BSE 250 SmallCap TRI. The benchmark's 15-year return is approximately 15-16 per cent. SBI Small Cap Fund, on the other hand, has generated an average annual return of 19.65 per cent in 15 years. It simply means that the fund has delivered returns that exceed its benchmark.

SBI Small Cap Mutual Fund: Power of SIP in building wealth

If you had invested Rs 10,000 monthly via a systematic investment plan in this fund. With a CAGR of 19.65 per cent in 15 years, your Rs 10,000 monthly SIP would have grown to approximately Rs 1 crore. The total investment during this period would have been Rs 18 lakh.

SBI Small Cap Mutual Fund: Power of lump sum investment

Meanwhile, SBI Small Cap Fund has also provided significant returns to lump sum investors. If someone had invested Rs 1 lakh in this fund 15 years ago, the CGAR of 19.65 per cent would have generated a corpus of approximately Rs 15 lakh. This means investors have received a return of approximately 15 times.