SBI MF gears for mega IPO launch, may raise up to $1 billion
Mumbai, Feb 12 SBI Mutual Fund launched of SBI Multicap Fund, an open-ended equity scheme which aims to provide wealth creation opportunities by investing in a mix of best ideas across large, mid, and small cap companies identified through a robust research process. The New Fund Offer would open on February 14, and close on February 28. The benchmark index of the Fund is the NIFTY 500 Multicap 50:25:25 TRI.
The Fund combines the strength of high conviction stock ideas of the sector analysts that will be selected from the fund house's active coverage universe (~350 companies). The high conviction ideas recommended by the analysts are arrived at after a robust 7-step research process wherein ranks & confidence scores are assigned to each recommendation. The fund will not have any sector or style bias as the outcome of portfolio selection will be based on the analyst recommendations.
Vinay M Tonse, MD & CEO, said, "We are happy to launch SBI Multicap Fund as it will provide relative stability to investors portfolio by investing in large caps, potential growth opportunities with mid-caps and higher alpha potential with small cap exposure over the long term.
The fund seeks to offer a balance to the investor's portfolio through this multicap exposure.
SBI Multicap Fund comes with a unique facility called MITRA SIP, which seeks to help investors build wealth through a Systematic Investment Plan and simultaneously register a Systematic Withdrawal Plan (SWP) which will be activated at the end of the SIP period to generate tax efficient regular cash flows. We believe with the SBI Multicap Fund investors will get strong pedigree of investment expertise across market cap and in one fund."
DP Singh, Chief Business Officer, said: ''We have witnessed a multi-fold growth in market capitalisation across large cap, mid cap & small cap segments indicating increased investor participation in the equity market.
A Multicap Fund makes a good case for investors who wish to have a dedicated allocation across large, mid, and small cap companies in one fund. Millennials, First time Investors (with more than 5 years' time horizon, wanting to have an unbiased flavour of market caps), and Direct Equity Investors who have a limited understanding of researching companies or have multiple investments across market capitalisation, looking for a consolidated solution through a single fund can choose this fund. We believe Multicap Funds are an ideal investment option for investors who would like a mix across market cap as they provide diversification of opportunities and growth potential while getting the benefit of limiting downside risk." Singh added.
SBI Multicap Fund will have a diversified allocation across market capitalizations and would invest 25 per cent or more of the fund's corpus each in Large, Mid and Small cap companies with the remaining 25 per cent to be invested in a sector agnostic manner depending on the opportunities available and providing flexibility to the portfolio. The minimum application amount (during the NFO period) required is of Rs 5,000 and in multiples of Re1 thereafter.
MITRA SIP is an optional facility which combines two powerful facilities i.e., SIP and SWP to help an investor create a comprehensive financial solution for their future goals. While he chooses to build wealth through SIP, inculcating the habit of investing regularly, a simultaneous registration of SWP (maximum
SBI Mutual Fund to launch SBI Multicap Fund amount subject to multiples of SIP instalment) enables him to plan for regular cash flows post the end of his SIP investment period. For complete details, we urge you to read the Scheme Information Document and other terms & conditions in the Application Form.
The Fund Manager for SBI Multicap Fund is R Srinivasan with Mohit Jain being the dedicated fund manager for investment in foreign securities.
