Mutual funds serve as a great investment option for investors who wish to generate wealth with small but consistent investments over a long period. Helping investors to invest at specific intervals, mutual funds can offer an opportunity to achieve growth, stability as well and safety which were absent in other traditional forms of investment. Different mutual fund houses offer various schemes that investors can select based on their risk appetite and after careful consideration of various important factors.
SBI mutual fund is one such mutual fund house that is known for its quality mutual fund schemes, reliable asset management services, company reputation, and years of experience. Delivering more than 60 mutual fund schemes across various sectors and market capitalization, investors with a high-risk appetite can opt for the best SBI small cap funds for better growth and returns.
Following is a list of the five best SBI small cap mutual funds that investors can select for long-term investment in 2025:
SBI Small Cap Fund Direct Growth
Serving as one of the best smallcap funds under SBI mutual fund, the SBI small cap fund direct growth offers diversified investment across different sectors like consumer goods, financial, industrials, etc. With high returns and minimal risk, the SBI small cap fund direct growth is perfect for investors who are looking for substantial returns. Evaluating the past performance, the fund has been able to generate 16.12% returns in the last three years and 22.62% in the last five years. Investors can start investing with an SIP amount of ₹500 or a lump sum investment of ₹5,000.
SBI Blue-Chip Direct Plan Growth
With more than ₹49,000 crores of assets under management, the SBI blue-chip direct plan growth is one of the most prestigious small cap mutual funds that investors can select. Delivering annualized returns of 12.76% in the last three years and 15.78% in the last five years, the blue-chip direct plan growth offers better returns with minimal risk.
SBI Flexi Cap Fund Direct Growth
With an annualized return of 11.22% in the last three years, the SBI Flexi cap fund direct growth offers a great investment opportunity into stocks of high-growth potential companies like Cognizant Technology, Sun Pharmaceutical, Muthoot Finance, Bharti Airtel, etc. Offering a balance between stocks of variable market capitalization, the Flexi cap fund includes stocks of large-cap, mid-cap, and small-cap companies for stability and overall growth.
SBI-Focused Equity Fund Direct Plan Growth
With an AUM of ₹34,677 crores, the SBI-focused equity fund direct plan growth is best known for its fast reliable performance. With an analyzed return of 11.95% in the last three years, the direct plan growth fund allows investors to start their investment journey with an SIP amount of ₹500. Alphabet Inc, ICICI Bank, Solar Industries, Kotak Mahindra Bank, and some popular stocks are included in the smallcap fund. Moreover, its expense ratio is 0.75% which in comparison to other funds is quite low.
SBI Nifty Index Direct Plan Growth
With an expense ratio of 0.23%, the SBI nifty index direct plan growth offers maximum returns with minimal expenses. Moreover, the one and 10-year annualized returns from the SBI nifty index direct plan growth is better than its counterparts in the same category. The fund has given 10.8% annualized returns in the last 3 financial years and 14.4% in the last 5 years.
Conclusion
SBI small cap mutual funds therefore offer a great investment opportunity to investors who wish to start their investment journey in 2025. However, investors must analyze the risk appetite and take into consideration factors like fund management and past returns before selecting the best SBI small cap funds.
