Bigger bang for your buck.
Mutual Funds – it can’t get bigger than this!

SBI Emerging Businesses Fund

Nature of fund:

Open-ended equity fund.

Investment objective:

The SBI Emerging Businesses Fund is an open-ended equity fund which concentrates investments primarily in small and mid-cap companies. The fund identifies potentially promising companies in the small and mid-cap segment and invests in them while they’re in their nascent stage. The fund allows for huge growth potential as the plan is to invest in companies before they become hugely successful.

Fund information:

Inception date 11th October, 2004.
CRISIL rank (as in June, 2015)

CRISIL Rank 5 in the Small and Mid-Cap Equity funds category.

CRISIL Rank 2 in the Consistent Performers – Equity funds category.

Plans

•Regular.

•Direct.

Options

•Growth.

•Dividend.

Schemes

•SBI Emerging Businesses Regular Growth Fund.

•SBI Emerging Businesses Regular Dividend Fund.

•SBI Emerging Businesses Direct Growth Fund.

•SBI Emerging Businesses Direct Dividend Fund.

Entry load None.
Exit load

•For exit within 1 year from the date of allotment = 1.00%.

•For exit after 1 year from the date of allotment = 0.

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 Moderately High Risk. Target investors are those who seek:

•Long term growth in investments.

•Investments in companies that are considered emergent.

•Investments in companies that are export oriented.

•Investments in companies that have outsourcing opportunities or are globally competitive.

•To invest in the growing potential of Indian businesses and provide investors maximum growth opportunities.

Benchmark S&P BSE 500 Index.
SWP Yes.

Monthly

•Minimum of Rs.500 can be drawn.

•Must indicate in the application form or issue advance.

•Can indicate month and year from which SWP should commence and the frequency.

Quarterly

•Minimum of Rs.500 can be drawn.

•Must indicate in the application form or issue advance.

•Can indicate month and year from which SWP should commence and the frequency.

STP Yes
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 Emerging Businesses Fund

Mr. R. Srinivasan

The head of Equity at SBI, Mr. R. Srinivasan currently handles and oversees equity assets worth over Rs.16,000 crores. With 19 years of experience in the capital markets, he rose fast in the ranks after joining SBI in 2009 as a Senior Fund Manager. His previous companies include FCH, Principal PNB AMC, Oppenheimer & Co., Motilal Oswal and Indosuez WI Carr, and more. He has done his MFM from the University of Bombay and is also a post graduate in commerce.

Investment philosophy

SBI Emerging Business Fund

  • Invests majority of funds in businesses that have a high growth potential.
  • High growth potential for large-cap companies is viewed in terms of export orientation and outsource potential. The fund will invest in these companies for stability.
  • Mid and small cap companies will have more allocation for investments as they also have better growth potential.
  • Aims to grow with businesses by investing at the right time and making a safe bet with potentially huge returns.

Portfolio – Top 10 Holdings

Top 10 holdings for the SBI Emerging Business Fund as on June 30th, 2015:

Equity Sector Percentage of AUM
Procter & Gamble Consumer Non-Durables 10.63
HDFC Bank Banking / Finance 9.65
Shriram City Banking / Finance 7.65
Divi’s Labs Pharmaceuticals 5.77
3M India Conglomerates 5.74
Solar Industries India Chemicals 4.88
Agro Tech Foods Miscellaneous 4.39
Sun Pharmaceuticals India Pharmaceuticals 4.23
Page Industries Manufacturing 4.17
Elgi Equipments Engineering & Capital Goods 4.01

Risk measures:

Sharpe Ratio 0.99
Alpha N/A
Beta 0.85
Standard deviation 15.21%

Performance

AUM (as on 30th June, 2015) Rs.1599.34 crores.
NAV (as on 4th September, 2015)

•SBI Emerging Businesses Regular Growth Fund = 88.2971.

•SBI Emerging Businesses Regular Dividend Fund = 21.7347.

•SBI Emerging Businesses Direct Growth Fund = 90.2638.

•SBI Emerging Businesses Direct Dividend Fund = 29.2847.

Returns and benchmark comparison
Date Scheme returns S&P BSE 500
Since Inception (till 31st May, 2015) 23.35% 16.32%
5 year 21.22% 9.81%
3 year 27.04% 17.78%
1 year 53.78% 33.19%
Expenses
Slab Rates SBI Emerging Businesses Fund expenses as a % of daily net assets
First 100 crores 2.50%
Next 300 crores 2.25%
Next 300 crores 2.00%
Balance Assets 1.75%

Expert view of the fund

Under the guidance of the well-experienced Mr. R. Srinivasan, this fund has come to be one of the better performers in its category. Although it’s beaten the benchmark returns consistently and returns have been high, the 5-years returns figures prompt caution for fresh investments. It is not recommended to sell off your investment if you’ve already invested in this fund, the portfolio allocation is perfect for those who have a large risk appetite and are prepared to weather a big hit if the market goes south.

Most of the investments will happen in small and mid-cap companies which aren’t as immune to market forces as larger companies. Thus, for some stability, the fund also invests in large-cap companies. The current market exposure is 38% for small-cap companies, 47% to mid-cap companies and 12% in large-cap companies that have export orientation or outsourcing potential.

How to apply

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.

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.

reTH65gcmBgCJ7k
This Page is BLOCKED as it is using Iframes.