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SBI FMCG Fund

Nature of fund:

Open-ended growth fund.

Investment objective:

The SBI FMCG fund aims to provide maximum growth opportunities through equity investments in an actively managed portfolio of FMCG stocks. The fund invests across a well-managed basket of equities in the FMCG sector, for growth of investments directly linked to the growth of the FMCG sector in the Indian economy.

Fund information:

Inception date 14th July, 1999.
CRISIL rank (as in June, 2015) Not ranked.
Plans

•Regular.

•Direct.

Options

•Growth.

•Dividend.

Schemes

•SBI FMCG Regular Growth Fund.

•SBI FMCG Regular Dividend Fund.

•SBI FMCG Direct Growth Fund.

•SBI FMCG Direct Dividend Fund.

Entry load None.
Exit load None.
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.

The SBI FMCG Fund is idea for those investors who seek:

•Long term growth in their investments.

•Investments in equities of the FMCG sector to provide sector specific returns and growth opportunities.

•Growth directly in proportion to the development of the FMCG sector in the Indian economy.

Benchmark S&P BSE Fast Moving Consumer Goods 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 FMCG Fund

Mr. Saurabh Pant

With over 4 years of experience as a research analyst in the capital markets, Mr. Pant is a qualified B.Com graduate with an MBE and a CFA (USA) Level 3. He joined SBI Mutual Funds in May 2007 and has grown steadily to a point where he has the esteemed title of fund manager. He is one of 10 highly qualified and experience fund managers in SBI’s Equity Fund Management Team.

Investment philosophy

SBI FMCG Fund

  • Invests predominantly in equities of companies in the FMCG sector.
  • FMCG is more or less always in demand, so the investment is a rather safe bet.
  • Focuses on sector specific growth.
  • Invest at least 70% in large-cap companies.
  • Invest at least 10% in mid-cap companies.
  • Invest at least 10% in small-cap companies.
  • Invest less than 10% in Cash and Other Current Assets.

Portfolio – Top 10 Holdings

Top 10 holdings of the SBI FMCG Fund as on July 31st, 2015:

Equity Sector Percentage of AUM
ITC Tobacco 37.76
Britannia Food & Beverage 11.09
Procter & Gamble Consumer Non-Durables 8.95
Kansai Nerolac Chemicals 5.89
United Breweries Food & Beverage 4.76
Manpasand Bevar Food & Beverage 4.32
United Spirits Food & Beverage 3.44
VIP Industries Manufacturing 3.18
Colgate Consumer Non-Durables 2.97
Asian Paints Chemicals 2.66

Risk measures:

Sharpe Ratio 0.63
Alpha N/A
Beta 0.76
Standard deviation 19.74%

Performance

AUM (as on 30th June, 2015) Rs.232.75 crore.
NAV (as on 2nd September, 2015)

•SBI FMCG Regular Growth Fund = 70.8730.

•SBI FMCG Regular Dividend Fund = 50.2463.

•SBI FMCG Direct Growth Fund = 72.8215.

•SBI FMCG Direct Dividend Fund = 60.5631.

Returns and benchmark comparison
Date Scheme returns S&P BSE Fast Moving Consumer Goods (FMCG)
Since Inception (till 31st May, 2015) 15.55% 12.25%
5 year 25.90% 22.37%
3 year 24.39% 20.03%
1 year 24.84% 11.51%
Expenses
Slab rates SBI FMCG 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

This fund aims to achieve maximum possible growth opportunities through investments in the FMCG sector. There is a certain level of stability as 67.4% of the exposure is to large-cap companies. Medium cap companies comprise 16.68% of this fund’s investments and small-cap companies have 15.92% of investment exposure. While this fund is suitable for creating wealth and helping you meet your lifestyle needs, new investors are advised to steer clear of it.

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.

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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.

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