SBI Multicap Fund New Fund Offer (NFO): Details and Review

SBI Multicap Fund NFO Review

Sannihitha Ponaka • Updated on 19 Feb, 2022

4 Mins

Article Content

SBI Multicap Fund NFO Details
Who Can Invest in SBI Multicap Fund?
Fund Manager
Asset Allocation
Concluding Remarks

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 8^th 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 14^th 2022
NFO Closing Date	February 28^th 2022
Re-open Date	March 8^th2022
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
Exit Load	0-1%
Suitability	Very High
Benchmark	NIFTY 500 Multicap 50:25:25 TRI Index
Plans and Options	Regular Plan & Direct Plan

NOTE:

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

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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.

Fund Manager

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.

Mohit Jain

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.

Asset Allocation

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

Concluding Remarks

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.