Nature of fund:
Open-ended sector fund.
Investment objective:
This fund seeks to generate long-term capital appreciation through investing predominantly in a portfolio of equities and equity-related securities of companies engaged in banking and financial services. Since banking & financial services are vital to the development of any country, the companies this fund invests in helps people invest, save and build assets.
Fund information:
| Inception date | 26th February, 2015. |
| CRISIL rank (as in June, 2015) | Not ranked. |
| Plans | • Regular. • Direct. |
| Options | • Growth. • Dividend. |
| Schemes | • SBI Banking & Financial Services Regular Growth Fund. • SBI Banking & Financial Services Regular Dividend Fund. • SBI Banking & Financial Services Direct Growth Fund. • SBI Banking & Financial Services Direct Dividend Fund. |
| Entry load | None. |
| Exit load | - 2.00% for exit within 12 months from the date of allotment. - 1.00% for exit after 12 months but within 18 months from the date of allotment. - 0.00% for exit after 12 months from the date of allotment. |
| Minimum investment | • Rs.5,000 (in multiples of Re.1). • Additional Investment: Rs.1,000 (in multiples of Re.1). |
| SIP | Monthly
• Minimum Rs.1000 (in multiples of Re.1) thereafter for minimum six months. • Minimum Rs.500 (in multiples of Re.1) thereafter for minimum one year. Quarterly• Minimum Rs.1500 (in multiples of Re.1), thereafter for minimum one year. |
| Product label – Risk and target investors | High Risk.
Target investors are those who seek:
• Long term growth in investments. • Investments in a portfolio of equity and equity related securities of companies that deal in banking and the provision of financial services. • The chance of excellent growth and returns, with a high risk appetite. |
| Benchmark | CNX Finance Index |
| SWP | Yes. |
| STP | No. |
| Redemption | • Rs.1,000 or 100 units or account balance (whichever is lower). • The price will be the Applicable NAV minus Exit Load. • Redemption proceeds will be dispatched within 10 working days. |
| Taxation (on investment and on redemption) | The tax implications of being associated and invested in this mutual fund must be discussed at length with your tax advisor. |
Fund manager
SBI Banking & Financial Services Fund
Ms. Sohini Andani
Ms. Sohini Andani has come a long way since she joined SBI as the Head of Research in 2007, with over 11 years of experience in research on the selling side. She was promoted to Portfolio Manager in 2010, and ever since has been accredited with making SBI mutual funds a highly profitable product line. She has previously worked with ASK Raymond James, KR Choksey Shares, Advani Share Brokers, LKP Shares and Securities and has brought a wealth of experience over to SBI, which she’s using to make the best use of investments and to make funds perform better.
Investment philosophy
SBI Banking & Financial Services Fund
- The fund aims to invest in equity stocks of companies that are in the banking and financial services sector.
- Bottom – up policy for allocating stocks.
- The fund aims at long-term capital appreciation.
- To invest 80% - 100% of all investible funds in high risk profile equities and equity-related securities of companies in the business of banking and providing financial services.
- To invest 0% - 20% of investible funds in low or medium risk debt and money market instruments.
Portfolio – Top 10 Holdings
Top 10 holdings for the SBI Banking & Financial Services Fund as on June 30th, 2015:
| Equity | Sector | Percentage of AUM |
| HDFC Bank Ltd. | Banking / Finance | 18.46% |
| ICICI Bank Ltd. | Banking / Finance | 10.31% |
| Indusind Bank Ltd. | Banking / Finance | 9.40% |
| Kotak Mahindra Bank Ltd. | Banking / Finance | 9.29% |
| Yes Bank Ltd. | Banking / Finance | 9.09% |
| State Bank of India | Banking / Finance | 8.40% |
| Axis Bank Ltd. | Banking / Finance | 8.31% |
| Bajaj Finance Ltd. | Banking / Finance | 6.70% |
| Mahindra & Mahindra Financial Services Ltd. | Banking / Finance | 4.69% |
| Shriram Transport Finance Co. Ltd. | Banking / Finance | 4.40% |
Risk measures:
| Sharpe Ratio | N / A |
| Alpha | N / A |
| Beta | N / A |
| Standard deviation | N / A |
Performance
| AUM (as on 30th June, 2015) | Rs.258.28 crores. | |||||||||||||||
| NAV (as on 30th June, 2015) |
• SBI Banking & Financial Services Regular Growth Fund = 9.6288. • SBI Banking & Financial Services Regular Dividend Fund = 9.6290. • SBI Banking & Financial Services Direct Growth Fund = 9.6424. • SBI Banking & Financial Services Direct Dividend Fund = 9.6395. | |||||||||||||||
| Returns and benchmark comparison |
| |||||||||||||||
| Expenses |
|
Expert view of the fund + outlook
This fund invests primarily in the well-established banking and financial services sector. The fund is relatively new and historical performance data isn’t available. The fund invests around 94.87% of funds in equities and 4.75% in the money market.
How to apply – online + distributors
You can apply online through the SBI mutual funds website, or alternatively call the SBI mutual funds office and they will guide you through a step-by-step procedure on how to invest. At any stage during your research on the SBI website, scroll to the top right of the screen and you will find a button that you can click on to express your interest in investing in the fund. You can physically walk in to the SBI branch and fill up your KYC forms after which you will be directed on how to invest through the mutual funds investment desk at the branch. There’s a 24/7 dedicated toll free number you can call, and you can also send an SMS showing your intent to invest. All these details of the number to call or SMS can be found on the SBI mutual funds website. You can also contact any one of SBI’s Investor Service Centres.
Display of any trademarks, tradenames, logos and other subject matters of intellectual property belong to their respective intellectual property owners. Display of such IP along with the related product information does not imply BankBazaar's partnership with the owner of the Intellectual Property or issuer/manufacturer of such products.
GST rate of 18% applicable for all financial services effective July 1, 2017.
