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SBI IT Fund

Nature of fund:

Open-ended equity fund.

Investment objective:

This fund seeks to provide maximum returns on investment through well-planned investments in the IT sector, which has boosted our country’s economy significantly. Equity investments will be made in the IT sector to ensure sector-specific growth and returns on investments in the long term.

Fund information:

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

•Regular.

•Direct.

Options

•Growth.

•Dividend.

Schemes

•SBI IT Regular Growth Fund.

•SBI IT Regular Dividend Fund.

•SBI IT Direct Growth Fund.

•SBI IT 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. Target investors are those who seek:

•Long term growth in investments.

•Equity investments in stocks of the Information Technology sector, for sector specific growth opportunities.

Benchmark SBI IT Fund – S&P BSE IT.
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 IT Fund

Mr. Anup Upadhyay

Prior to working with SBI Mutual Funds Management, Mr. Upadhyay has worked with Tata Consultancy Services. He holds a B.Tech (Hons) degree and a PGDM. He handles the SBI IT Fund.

SBI IT Fund

  • Focuses investments in equities of Information Technology companies.
  • Aims to deliver sector specific growth and growth of investments.
  • To invest at least 72% of funds on large-cap companies for stability.
  • To invest at least 14% of funds in mid-cap companies.
  • To invest at least 9% of funds in small-cap companies.
  • To invest at least 4% of funds in Cash and Other Current Assets.

Portfolio – Top 10 Holdings

Top 10 holdings for the SBI IT Fund as on July 31st, 2015:

Equity Sector Percentage of AUM
Infosys Technology 36.59
TCS Technology 19.87
HCL Technologies Technology 11.43
Hexaware Tech Technology 5.17
KPIT Tech Technology 4.35
eClerx Services Technology 3.51
Just Dial Miscellaneous 3.28
Accelya Kale Technology 2.91
Smartlink Net Technology 2.82
Wipro Technology 2.50

Risk measures:

Sharpe Ratio 0.50
Alpha N/A
Beta 0.96
Standard deviation 24.41%

Performance

AUM (as on 30th June, 2015) Rs.87.70 crores.
NAV (as on 2nd September, 2015)

•SBI IT Regular Growth Fund = 44.4284.

•SBI IT Regular Dividend Fund = 31.3795.

•SBI IT Direct Growth Fund = 45.7197.

•SBI IT Direct Dividend Fund = 38.1398.

Returns and benchmark comparison
Date Scheme returns S&P BSE IT Index
Since Inception (till 31st March, 2015) 15.90% 14.91%
5 year 19.55% 16.83%
3 year 27.51% 23.29%
1 year 40.29% 29.75%
Expenses
Slab Rates SBI IT 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 invests in the IT sector, and aims to generate growth through well-managed investment in the equity shares of promising IT companies. The fund invests 79.94% in large-cap companies, which gives it a large amount of stability (with albeit smaller returns). Medium cap companies have 10.21% of the fund’s investment exposure, and small-cap companies get 9.85% of the investment exposure. New investors can skip this fund and find more rewarding ones, but don’t pull your money out of it if you’ve already invested in this fund.

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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