SBI Funds Management Limited · NSE:SBIFUNDS
SBI Funds Management — SBI Mutual Fund — Investor Presentation (February 2022)
39 slides from SBI Funds Management's investor presentation, February 2022
Slide 1: SBI Multicap Fund
ojo SBI MUTUAL FUND A PARTNER FOR LIFE ‘The best thing to have, /) is the’ best of |everything. | SBI Multicap Fund Aims to provide a mix of Large, Mid, and Small-cap companies identified through a robust research process. This product is suitable for investors who are seeking": i _— MULTICAP FUND A
Slide 2: Understanding Market Capitalisation
UNDERSTANDING MARKET CAPITALISATION SBI FUNDS MANAGEMENT LIMITED (A JOINT VENTURE BETWEEN SBI & AMUNDI) 2
Slide 3: What is Multicap?
WHAT IS MULTICAP? LARGECAP Relatively consistent with a lower downside risk and are better equipped to >=25% withstand volatility Businesses with potential growth MIDCAP prospects at reasonable valuations with >=25% growth sustainability SMALLCAP Niche businesses in sunrise industries with an opport
Slide 4: Fund Positioning
FUND POSITIONING Large cap Mid cap Small cap SBI Bluechip Fund [ ≥ 80% in Largecap] SBI Large & Midcap Fund [ ≥ 35% each in Large & Midcap] SBI Magnum Midcap Fund [ ≥ 65% in Midcap] SBI Smallcap Fund [ ≥ 65% in Smallcap] SBI Flexicap Fund [Across Market cap] Diversified Large (≥ 25%) Mid (≥ 25%) Sma
Slide 5: Understanding Market Capitalisation
UNDERSTANDING MARKET CAPITALISATION Market Capitalisation = Current Market Price of a share x Total Outstanding shares CMP Total Outstanding Market Cap (A)*(B) Classification basis Full Company Name (A) Shares (B) (in Crores) Market cap (in Crores) 2398 Largecap Company A 676 16,22,245 [Top 100 comp
Slide 6: What Each Market Cap Means
WHAT EACH MARKET CAP MEANS… Dominant players Top 100 Mature businesses with track record Matured Liquid with reasonably high trading volumes Large cap 101st to 250th Potential large caps Higher growth prospects Growing Typically emerging-type businesses Mid cap Potential multi-baggers Beyond 250th I
Slide 7: Key Characteristics
KEY CHARACTERISTICS Largecap Midcap Smallcap Total Free Float 84 lakh 18 lakh 8 lakh Market Cap (Crs.) Market Average Free Float efficiency 83,752 11,647 3,247 Market Cap (Crs.) Top 5 Stocks 9.0 8.2 weightage (%) 34.8 Concentration Top 3 Sectors 59.9 52.3 52.7 weightage (%) P/E | P/B 26.6 | 3.6 31.7
Slide 8: Why Multicap
WHY MULTICAP SBI FUNDS MANAGEMENT LIMITED (A JOINT VENTURE BETWEEN SBI & AMUNDI) 8
Slide 9: Wealth Has Grown Across Segments
WEALTH HAS GROWN ACROSS SEGMENTS Full Float Market Capitalisation (in Lakh Crores) LARGECAP MIDCAP SMALLCAP 2021 175.9 2021 32.7 2021 10.4 2020 136.5 2020 20.3 2020 6.7 2019 113.6 2019 16.4 2019 4.8 2018 100.6 2018 15.8 2018 4.4 2017 98.0 2017 22.2 2017 5.6 2016 74.1 2016 15.1 2016 3.8 2015 68.5 4.7
Slide 10: Pulling Off the Right Balance
PULLING OFF THE RIGHT BALANCE… 133% 133% 128% 106% 88% 91% 77% 83% 76% 61% 63% 61% 44% 48% 26% 10% 11% 0% -16% -12% -16% -9% -18% -29% -29% -29% -34% -42% -54% -59% Sub Prime Crisis Recovery Post European Crisis Post European China Slowdown Global Liquidity and Global Trade War Before Corona Post Pa
Slide 11: Largecap + Midcap + Smallcap Fusion
LARGECAP + MIDCAP + SMALLCAP FUSION Average 5-Year Rolling Returns in each of the Calendar period (in %) 25 Large cap Nifty 100 TRI NIFTY 500 Multicap 50:25:25 TRI NIFTY 500 19.9 Multicap 50 Mid cap 20 50:25:25 TRI 18.6 16.0 16.1 Small cap 15.4 15.9 25 15 14.6 15.0 13.4 11.4 11.5 11.1 10.6 11.2 10 9
Slide 12: Diversification – Limiting Downside
DIVERSIFICATION – LIMITING DOWNSIDE Maximum Drawdown Period 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Large cap -13.7% -14.7% -6.4% -13.7% -13.0% -4.4% -14.9% -10.5% -37.9% -9.9% Mid cap -12.2% -24.0% -7.8% -11.9% -17.0% -6.8% -23.5% -14.3% -38.5% -10.3% Small cap -13.9% -31.5% -8.6% -14.8%
Slide 13: Presenting SBI Multicap Fund
PRESENTING SBI MULTICAP FUND SBI FUNDS MANAGEMENT LIMITED (A JOINT VENTURE BETWEEN SBI & AMUNDI) 13
Slide 14: Combining the Power of Diversification
COMBINING THE POWER OF DIVERSIFICATION HIGH CONVICTION ANALYST PORTFOLIO Diversified allocation across Combining the strength of high market capitalisations at all times conviction stock ideas of the 15 sector analysts Style Agnostic as it may be 25% portfolio flexibility to invest in market cap MCA
Slide 15: Analyst High Conviction Ideas
ANALYST HIGH CONVICTION IDEAS… LISTED UNIVERSE ~ 2000 stocks listed across market cap of over 100 Crs. INVESTABLE UNIVERSE ~ 1200 stocks listed across market cap Stocks from passive universe is included in PASSIVE UNIVERSE ACTIVE COVERAGE ~ 450 stocks not considered in ~ 350 stocks considered for 15
Slide 16: Sector Agnostic
SECTOR AGNOSTIC Top 5 Sector Weightage NIFTY 100 Weight NIFTY Midcap Weight NIFTY Smallcap Weight (%) 150 (%) 250 (%) SBI Multicap Fund Approach… Financial Services 33.3 Financial Services 15.8 Financial Services 17.1 Aims to identify opportunities through Bottom-up stock Industrial IT 16.7 Consumer
Slide 17: Importance of Active Stock Selection (1/2)
IMPORTANCE OF ACTIVE STOCK SELECTION (1/2) Largecap Stock Performance Midcap Stock Performance Smallcap Stock Performance 3-Year CAGR 3-Year CAGR 3-Year CAGR >10% 72% >10% 64% >10% 66% Returns Returns Returns >0% to <10% 20% >0% to <10% 17% >0% to <10% 19% <0% 8% <0% 19% <0% 15% 0% 20% 40% 60% 80% 0
Slide 18: Importance of Active Stock Selection (2/2)
IMPORTANCE OF ACTIVE STOCK SELECTION (2/2) Value of Rs. 1 lakh invested Investor A Investor B 6,00,000 SBI Bluechip Fund (50%) + SBI Magnum Midcap Fund (25%) + SBI Small Cap Fund (25%) INR 5.34 lakhs Multicap Index* 1,00,000 4,50,000 SBI Bluechip Fund (50%) 50,000 Rs. 3.87 lakhs NIFTY 500 Multicap 5
Slide 19: Investment Process & Opportunities
INVESTMENT PROCESS & OPPORTUNITIES SBI FUNDS MANAGEMENT LIMITED (A JOINT VENTURE BETWEEN SBI & AMUNDI) 19
Slide 20: Our Investment Ethos
OUR INVESTMENT ETHOS MACRO + ASSET ALLOCATION INVESTMENT BOTTOM-UP MULTI FACTOR RESEARCH MODEL UNIVERSE QUANTITATIVE ESG + FORENSIC MODELS As the core of our investment process, each stock in our investible universe goes through a rigorous multi step analysis. Portfolio will be managed as per the st
Slide 21: Robust 7-Layered Investment Process
ROBUST 7-LAYERED INVESTMENT PROCESS ▪ Competitors ▪ Rationale ▪ Checklist ▪ Market Intelligence ▪ Customers ▪ Target Price ▪ Best Ideas ▪ Price Volumes / Trade Offs ▪ Suppliers ▪ Recommendations ▪ Risks ▪ Technicals ▪ Management Idea Portfolio Generation Analysis Monitoring Construct Investment Exec
Slide 22: Growing Investable Universe – Spotting the Right Opportunity
GROWING INVESTABLE UNIVERSE – SPOTTING THE RIGHT OPPORTUNITY Number of Past Issues IPO Last 3 years IPOs - Current Market Cap* 95 75 64 43 30 28 16 15 12 5 10 8 6 7 2019 2020 2021 Total IPOs Large Cap Mid Cap Small Cap Industry SBIMF Participation Industry SBIMF Participation Investable Universe is
Slide 23: Product Suitability & 5 Reasons Why
PRODUCT SUITABILITY & 5 REASONS WHY… SBI FUNDS MANAGEMENT LIMITED (A JOINT VENTURE BETWEEN SBI & AMUNDI) 23
Slide 24: Suitable For…
SUITABLE FOR… Millennials & first time Consolidation Long-term Direct equity investors investors investors Investor looking for Long Investors having multiple Long-term investors aiming One-stop solution that term Wealth Creation investments across market to build wealth to meet offers diversificati
Slide 25: 5 Reasons Why SBI Multicap Fund
5 REASONS WHY SBI MULTICAP FUND Unconstrained, sector agnostic approach Active Stock Management with Bottom-up strategy High Conviction Play through Analyst Portfolio Style Agnostic with broader opportunity set for stock selection Strong pedigree of Investment Expertise across market cap SBI FUNDS M
Slide 26: Fund Facts
FUND FACTS Exit Load NIL - If units purchased or switched in Name Category Fund Manager& from another scheme of the Fund are redeemed or switched out up to 10% of the units (the limit) purchased or SBI Multicap Fund switched on or before 1 year from the An open ended equity scheme Multicap scheme da
Slide 27: What is MITRA SIP?
WHAT IS MITRA SIP? MITRA SIP IS A POTENT TOOL THAT IS A COMBINATION OF POTENTIAL WEALTH CREATION & SYSTEMATICALLY REAPING BENEFITS OF THE SAME. Simultaneous registration of Register for SIP in any of SYSTEMATIC SYSTEMATIC SWP in the source scheme or the source schemes for INVESTMENT WITHDRAWAL any o
Slide 28: Potential Wealth Creation + Financial Independence Through MITRA SIP
POTENTIAL WEALTH CREATION + FINANCIAL INDEPENDENCE THROUGH MITRA SIP STEP 1 Choose Your Monthly SIP Amount into growth option of Source Scheme (subject to minimum SIP application amount of source scheme) Monthly SIP Rs. 10,000 Rs. 10,000 Rs. 10,000 Rs. 10,000 For illustration STEP 2 Choose Your SIP
Slide 29: MITRA SIP Benefits
MITRA SIP BENEFITS ILLUSTRATION: An Investor making SIP investment in Source Scheme assuming growth rate @ 12% and SWP from a Target Scheme assuming growth rate @ 8% . Market Value of Max SWP = SIP Period Monthly SIP Investment Market Value of Monthly SWP investment multiple SIP (Years) Amount (Rs.)
Slide 30: Why SBI Mutual Fund?
WHY SBI MUTUAL FUND? Trusted by over 10 million Investors Managing assets for over 35 years Signatory of UNPRI & CFA Asset Manager Code of Conduct Servicing investors across ~99% pin codes of the country Investment team of ~65 members with an average experience of 15 years in the country An array of
Slide 31: Disclosures & Disclaimer
DISCLOSURES & DISCLAIMER SBI FUNDS MANAGEMENT LIMITED (A JOINT VENTURE BETWEEN SBI & AMUNDI) 31
Slide 32: Performance of Select SBI MF Schemes
PERFORMANCE OF SELECT SBI MF SCHEMES 1 Year 3 Years 5 Years Since Inception Point to Point Point to Point Point to Point Point to Point Inception Date returns on returns on returns on returns on & CAGR % Standard CAGR % Standard CAGR % Standard CAGR % Standard Managing Since Investment of Rs. Invest
Slide 33: Performance of Select SBI MF Schemes
PERFORMANCE OF SELECT SBI MF SCHEMES 1 Year 3 Years 5 Years Since Inception Point to Point Point to Point Point to Point Point to Point returns on returns on returns on returns on Inception Date CAGR % Standard CAGR % Standard CAGR % Standard CAGR % Standard & Investment of Investment of Investment
Slide 34: Performance Disclosures
PERFORMANCE DISCLOSURES Notes: The details of the period since the Fund Manager is managing the scheme(s) & inception date provided alongside of the table. The total no. of schemes managed by Mr. R. Srinivasan is 6 (2 schemes are jointly managed by Mr. Dinesh Ahuja). The total number of schemes mana
Slide 35: Product Labelling as on Dec 31, 2021 (1/3)
PRODUCT LABELLING AS ON DEC 31, 2021 (1/3) Scheme Name Product Labelling SBI Blue Chip Fund This product is suitable for investors who are seeking*: An open-ended equity scheme predominantly investing in ▪ Long term capital appreciation large cap stocks ▪ Investment in equity and equity-related inst
Slide 36: Product Labelling as on Dec 31, 2021 (2/3)
PRODUCT LABELLING AS ON DEC 31, 2021 (2/3) Scheme Name Product Labelling SBI Focused Equity Fund This product is suitable for investors who are seeking*: An open-ended equity scheme investing in maximum 30 stocks ▪ Long term capital appreciation across multicap space ▪ Investment in equity and equit
Slide 37: Product Labelling as on Dec 31, 2021 (3/3)
PRODUCT LABELLING AS ON DEC 31, 2021 (3/3) Scheme Name Product Labelling This product is suitable for investors who are seeking*: SBI Banking & Financial Services Fund ▪ Long term capital appreciation An open-ended equity scheme investing in Banking and ▪ Investment predominantly in a portfolio of e
Slide 38: Benchmark Riskometer as on Dec 31, 2021
BENCHMARK RISKOMETER AS ON DEC 31, 2021 Scheme Name Scheme Benchmark Name SBI Focused Equity Fund S&P BSE 500 TRI SBI Flexicap Fund S&P BSE 500 TRI Scheme Benchmark Riskometer SBI Magnum Global Fund Nifty MNC TRI SBI Blue Chip Fund S&P BSE 100 TRI SBI Magnum Midcap Fund Nifty Midcap 150 TRI SBI Smal
Slide 39: Disclaimer
DISCLAIMER This presentation is for information purposes only and is not an offer to sell or a solicitation to buy any mutual fund units/securities. The views expressed herein are based on internal data, publicly available information & other sources believed to be reliable. Any calculations made ar
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