Sbi Mutual Fund: Smart Investment, Secure Future

SBI Mutual Fund is one of India's largest and oldest mutual funds, established on 29 June 1987 and incorporated on 7 February 1992. It is a joint venture between the State Bank of India and Amundi, a French asset management company. SBI Mutual Fund offers a wide range of investment options, including equity funds, debt schemes, hybrid funds, and gold funds, catering to diverse financial goals and risk appetites. With Rs. 10,24,953.6 crores in assets under management as of June 2024, it holds a significant share of the industry's AUM. The fund house has a strong presence in the market, and its schemes have consistently performed well, making it a reliable choice for investors seeking to grow their wealth. SBI Mutual Fund also provides a range of tools and resources to help investors make informed decisions, manage market volatility, and achieve their investment objectives.

SBI's ESG Fund for sustainable investment

Sustainable and responsible investing is an increasingly popular approach to investing, and ESG funds are a great way to invest in companies that are environmentally and socially conscious. ESG stands for environmental, social, and governance, and these funds invest in companies that aim to have a positive impact in these areas.

SBI's ESG Fund is a great option for investors looking for sustainable investment opportunities. Here's why you should consider investing in SBI's ESG Fund:

Environmental Impact

The fund focuses on companies that are environmentally conscious and aims to reduce their carbon footprint. This includes companies with sustainable energy sources, those minimizing pollution, and those with sustainable supply chains.

Social Impact

The fund prioritizes companies with strong social policies, including fair employee compensation, equal employment opportunities, and diverse and inclusive leadership. These companies also advocate for social good beyond their immediate business sphere.

Governance

The fund assesses companies' management and board practices to ensure they address the interests of employees, shareholders, and customers. This includes evaluating executive compensation, board diversity, and positive interactions with shareholders.

Performance and Risk

ESG funds have been found to match or even outperform traditional funds in terms of performance. Additionally, they have consistently shown lower downside risks than traditional funds.

Diverse Portfolio

SBI's ESG Fund offers a well-diversified portfolio, investing in a wide range of companies across different sectors and geographies. This helps to minimize risk and maximize returns.

Alignment with Values

The fund's mission is to support sustainable and responsible businesses, ensuring your investment dollars are aligned with your values.

Independent Ratings and Certifications

Look for independent ratings and certifications from organizations like Morningstar, MSCI, or the UN-supported Principles for Responsible Investment (PRI). These provide additional assurance of the fund's ESG credentials.

Low Fees

The fund offers low fees, making it a cost-effective option for investors.

Customizable

You can customize your impact by deciding on the specific ESG focus areas that matter most to you, be it environmental, social, or governance-related issues.

Impact Reports

The fund provides impact reports that detail the societal and environmental impact of your investment, including shareholder engagement, carbon footprint reduction, and gender diversity.

In summary, SBI's ESG Fund offers a sustainable investment opportunity with strong performance, low fees, and a commitment to environmental and social responsibility. By investing in this fund, you can align your investment goals with your values and support a greener, more equitable future.

SBI's Long-Term Equity Fund

SBI Mutual Fund is a joint venture between the State Bank of India, one of India's largest and most profitable banks, and Amundi, a French asset management company. It is one of India's largest and oldest mutual funds, with a range of schemes designed to help investors grow their wealth and meet their investment objectives.

The scheme seeks capital appreciation through investments in equities, cumulative convertible preference shares, and fully convertible debentures and bonds. It was launched on 29 June 1987 and was converted into an open-ended plan in November 1999. As of October 2024, the fund has an Asset Under Management (AUM) of ₹10,37,900 Cr and a latest NAV of ₹472.34.

SBI offers a range of investment options, including online and offline modes, for those looking to invest in its mutual funds.

SBI's Conservative Hybrid Fund

Here's a more detailed overview of the SBI Conservative Hybrid Fund:

Investment Strategy

The fund's strategy is to invest mainly in debt and money market instruments, providing a steady stream of income. It also allocates a smaller portion (around a quarter) to equity investments, which adds a bit of volatility but helps boost returns to keep up with inflation over time. This mix of investments makes it a conservative hybrid fund.

Risk and Returns

As a conservative hybrid fund, this product offers moderate returns with lower volatility compared to pure equity funds. It is suitable for investors who cannot withstand significant fluctuations in the value of their investments but still want returns slightly higher than fixed-income options. The fund's NAV (Net Asset Value) as of July 13, 2023, was ₹64.2133.

Investment Horizon

The SBI Conservative Hybrid Fund is recommended for investors with an investment horizon of three years or more. To achieve dependable income with some inflation protection, investors are advised to gradually invest their accumulated savings over several months and maintain a withdrawal rate of 4-6% annually.

Portfolio Composition

As of June 30, 2023, the fund had invested 71.15% in debt, 23.96% in equity, 4.13% in cash and cash equivalents, and 0.76% in real estate. The equity portion is primarily invested in Large Cap stocks. The fund's AUM (Assets Under Management) as of June 30, 2023, was ₹7,917 Cr.

Fees and Expenses

The expense ratio for the SBI Conservative Hybrid Fund is 0.61%. There is no lock-in period for this fund. The minimum SIP (Systematic Investment Plan) amount is ₹500.

SBI's Magnum Gilt Fund

SBI Magnum Gilt Fund is a debt mutual fund scheme that was launched by SBI Mutual Fund on 29 June 1987. The fund has an asset under management (AUM) of ₹10,37,900 Cr and a net asset value (NAV) of ₹66.39 as of 16 September 2024. The expense ratio of the fund is 0.94%.

The scheme aims to generate returns by investing in government securities, with a minimum of 80% of its assets invested in bonds issued by the Government of India. These bonds are considered safe as the government backs the repayment of investors' money. The fund will typically maintain an average maturity of over three years.

SBI Magnum Gilt Fund is suitable for investors who want to invest for the long term but prioritise the safety of their investments. The fund has a moderate risk level and no lock-in period. The minimum SIP investment is ₹500, and the minimum lumpsum investment is ₹5,000.

The fund has delivered 7.99% returns since its inception and is managed by Dinesh Ahuja.

SBI's Retirement Benefit Fund

The fund's objective is to deliver returns that exceed the inflation rate and those from fixed-income options over a five-year period. However, investors should be prepared for potential fluctuations in investment value. As a flexi-cap fund, the management team has the freedom to invest in companies of different sizes, depending on where they anticipate maximum gains.

The SBI Retirement Benefit Fund has a lock-in period of five years or until the investor reaches retirement age, whichever comes first. It is important to note that this fund carries a "Very High Risk" rating. As of 20th September 2024, the Net Asset Value (NAV) was ₹21.2002, and the fund size was ₹2763.33 Cr. The expense ratio for this fund is 1.93%, which is slightly higher than the category average of 2.09%.

The fund's portfolio is largely conservative, with 97.19% investment in domestic equities, of which 53.11% is in Large Cap stocks, 10.98% in Mid Cap stocks, and 14.45% in Small Cap stocks. Additionally, 1.1% is invested in Debt, with 0.73% in Government securities and 0.37% in Low-Risk securities.

Frequently asked questions