SBI Mutual Fund has launched a new multicap fund, SBI Multicap Fund, that offers a diversified portfolio by investing across market caps.
The New Fund Offer (NFO) period for the SBI Multicap Fund is from February 14th 2022, to February 28th 2022. Furthermore, the scheme re-opens for continuous repurchases from March 8th 2022.
The scheme’s investment objective is to provide investors with opportunities for long-term growth in capital from a diversified portfolio of equity and equity-related instruments across market capitalization. However, there can be no assurance that the fund’s investment objective is met.
SBI Multicap Fund NFO Details
|SBI Multicap Fund||Details|
|NFO Opening Date||February 14th 2022|
|NFO Closing Date||February 28th 2022|
|Re-open Date||March 8th 2022|
|Type of Fund||Open-ended equity scheme|
|Fund Manager||Mr R. Srinivasan and Mr Mohit Jain (Dedicated Fund Manager for overseas securities)|
|Minimum Investment Amount||INR 5,000|
|Minimum Additional Purchase Amount||INR 1,000|
|Benchmark||NIFTY 500 Multicap 50:25:25 TRI Index|
|Plans and Options||Regular Plan & Direct Plan|
- All additional investment amounts should be multiple of INR 1/-
- Minimum SIP/SWP/STP for Quarterly frequency is INR 1,500/-
- Exit Load:
- NIL – If units purchased or switched in from another scheme of the Fund are redeemed or switched out up to 10% of the units (the limit) purchased or switched on or before one year from the date of allotment.
- 1% of the applicable NAV – If units purchased or switched in from another scheme of the Fund are redeemed or switched out more than the limit on or before one year from the date of allotment
- NIL – If units purchased or switched in from another scheme of the Fund are redeemed or switched out after one year from the date of allotment
Who Can Invest in SBI Multicap Fund?
SBI Multicap Fund is a diversified equity mutual fund, therefore suitable for investors looking to invest in the equity sector. The scheme invests across different market capitalizations. With the high conviction stock ideas of sector analysts to create a portfolio that invests at least 25% of the fund’s corpus in large, mid, and small-cap companies after evaluating them through a robust 7-layered investment process. Also, the remaining 25% is invested in a sector-agnostic way depending on the possibilities available and offering portfolio flexibility.
Therefore, investors seeking exposure to diversified funds and risk-takers can consider investing in the scheme. Also, investors having multiple investments across market capitalization looking for consolidation through a single fund can invest in the scheme. Furthermore, individuals aim to build wealth to meet their long-term financial goals with a potentially better risk-return trade-off. Moreover, the SBI Multicap fund is suitable for investors with a longer investment duration of 5+ years.
Mr R Srinivasan
Mr Srinivasan is currently the Chief Investment Officer – Equity and joined the fund house in 2009 as a Senior Fund Manager. He directly manages several funds and has more than 25 years of experience in equities. Prior to joining SBI, he was with Future Capital Holding, Principal PNB, Oppenheimer & Co (later Blackstone), Indosuez WI Carr and Motilal Oswal. Mr Srinivasan is a postgraduate in Commerce and also holds an MFM degree from the University of Mumbai. Also, he currently manages 12 funds.
In 2015, Mohit Jain joined SBIFM. Mohit worked as a Senior Research Analyst at CRISIL Limited prior to joining SBIFM. He holds a bachelor’s degree in engineering from Sathyabama University and is also a CFA level III graduate of the CFA Institute, United States. Also, he currently manages three funds.
Following is the indicative asset allocation of the SBI Multicap Fund.
|Types of Instruments||Indicative Allocation Minimum||Indicative Allocation Maximum||Risk Profile|
|Equity and Equity Related Instruments: Large Cap, Mid Cap and Small Cap Companies||25%, 25%, and 25%||50%, 50% and 50%||High|
|Debt and Money Market Instruments||0||25%||Low to Medium|
|Units issued by REITs and InvITs||0||10%||Medium to High|
SBI Multicap fund is a diversified equity scheme that invests across different market capitalization. The fund’s benchmark is NIFTY 500 Multicap 50:25:25 TRI Index. Also, 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 (nearly 350 companies). Furthermore, the analysts’ high conviction recommendations are chosen through a thorough 7-step research process in which each tip is given a rank and a confidence level. Since the fund invests across different market caps, it is a high-risk investment option.
SBI Multicap fund is suitable for investors who understand and are willing to take on the risk.
Furthermore, because it is a pure equity scheme, a long-term investment horizon is recommended. Moreover, as the fund does not guarantee returns, it is prudent to keep a close eye on the investments.
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