SBI Focused Equity Fund, previously known as SBI emerging businesses fund, made its debut in October 2004. It is an open-ended equity fund which primarily concentrates investments in small and mid-cap companies. SBI Focused Equity Fund identifies potentially promising companies in the mid and small-cap segment and invests in them while they are in emerging state. The scheme allows huge growth potential as it plans to invest in companies before they become highly successful.
The scheme is classified as a focused fund, and it follows a focused investment strategy which can invest in a maximum of up to 30 stocks. The fund invests across all market capitalisation and thus, is a multi-cap focused fund. The fund featured in AUM (Assets Under Management) of Rs. 4642.18 Cr as on 31 May 2019. The fund has outperformed in the recent years.
Moreover, SBI emerging businesses fund evaluate and focus on the emerging businesses within the nation, which could potentially offer higher growth. Furthermore, the fund has an actively managed portfolio with a high degree of equity share diversification, particularly towards mid and small-cap funds. The scheme is flexible in terms of investing across different market capitalisation, irrespective of the specific type in which it falls.
| Inception date | 11th October 2004 |
| CRISIL Rank | 4 as on 31st March 2019 |
| Plans | Direct Regular |
| Options | Growth Dividend |
| Entry Load | None |
| Exit load | For exit within a year from the date of scheme allotment : 1% For exit after a year from the date of scheme allotment : 0% |
| Minimum investment | Rs. 5,000 Additional investment: Rs. 1,000 |
| SIP | Monthly Minimum of Rs. 1,000, in multiples of Re. 1 thereafter for a minimum of 6 months Minimum of Rs. 500, thereafter for minimum 1 year Quarterly Minimum Rs. 1,500, & in multiples of Re. 1 thereafter for minimum 1 year |
| Product label - Risk and target investor | Moderately high risk. Target investors are those who seek: - Long term growth in investment - Investment in companies that are emerging - Investment in companies that are export-oriented - Investment in companies that are globally competitive and have outsourcing opportunities - To invest in growth potential for Indian businesses |
| Benchmark | S & P BSE 500 Index TRI |
Mr R. Srinivasan is the head of equity and currently manages the overseas equity assets worth over Rs.16,000 crores. With more than 26 years of rich experience in the capital markets, he joined SBI in 2009 as a Senior fund manager. He has vast experience and has managed the fund strategy with high efficiency.
| Fund performance | 1 Year | 3 Year | 5 Year |
|---|---|---|---|
| Trailing Returns | -6.36% | 13.49% | 18.73% |
| Rolling Returns | -1.57% | 16.39% | 20.30% |
| Beta | 0.894 | 0.804 | 0.806 |
| Jensen’s Alpha | -5.32% | 1.89% | 6.77% |
| Sharpe ratio | -0.908 | 0.396 | 0.709 |
| Sortino ratio | -0.278 | 0.196 | 0.364 |
The asset allocation of SBI emerging businesses fund
Following is the asset class wise investment break up of SBI emerging businesses fund as on January 2019.
| Asset class | Portfolio allocation (% of total assets) |
|---|---|
| Large-cap equities | 50.11% |
| Mid-Cap equities | 13.30% |
| Small cap equities | 22.17% |
| Cash or cash equivalent instruments / short term debt | 14.42% |
SBI emerging businesses fund is a relatively aggressive fund that has given significant exposure to small and mid-cap companies in its portfolio. Small and mid-cap companies are more likely to respond to the economic and stock market changes than companies with large capitals and are fundamentally strong.
The fund's large-cap holdings stand at 50.11% and have invested around 13.30% and 22.17% in mid and small-cap companies, respectively. The scheme features liquidity of 14.42% in its portfolio of cash and cash equivalent instruments. This liquidity can help the fund to capitalise on future opportunities in the market in the case of a correction. Following is the list of the top sectors that SBI emerging businesses fund is invested as of January 2019.
| Investment sector | % of asset allocated |
|---|---|
| Financial services | 31.30% |
| Consumer goods | 21.15% |
| Services | 7.27% |
| Industrial Manufacturing | 6.66% |
| Chemicals | 5.28% |
The fund has maintained its aggressive stance in the asset allocation across multiple sectors. The fund has given higher weightage to consumption-driven sectors of the economy than the defensive sectors which work relatively independent of national-level economic changes.
It is advisable for the investors to go through the performance analysis.
The fund has provided an attractive return of 13.49% over the period of last 3 years as on January 2019. However, returns of last 3 years fell a little short of the 13.79% return earned by its benchmark over the period of the last 3 years. The fund has demonstrated an extraordinary performance over the last five years by yielding a return of 18.73% as compared to 15.22% by its benchmark.
The stock selection strategy of the fund follows the bottom-up approach by using the combination of multiple factors including profitability, valuation, business model, growth and management. The benchmark against which SBI Focus Equity Fund performance is measured is the S&P BSE 500 Index. The fund is devoted to meet the investment goals of the investors over a period of time.
Here is the list of top 10 holdings of SBI Focused Equity Fund as on January 2019.
| Investment Name | Weight in Portfolio |
|---|---|
| HDFC Bank | 9.58% |
| Proctor & Gamble Hygiene and Health Care | 7.18% |
| State bank of India | 5.96% |
| Kotak Mahindra Bank | 5.46% |
| Divi’s Laboratory | 4.80% |
| Hatsun Agro Product | 4.70% |
| Bajaj Finance | 4.10% |
| Solar Industries India | 3.33% |
| Bharti Airtel | 3.11% |
| InterGlobe Aviation | 3.10% |
SBI emerging businesses fund holds a notable market position with an average capitalisation of Rs. 14,272.07 crores. With its growth-oriented investment nature, the fund has designed a diversified portfolio and it keeps getting modifying as per the market conditions to earn the highest returns.
The sector allocation graph of the SBI emerging businesses fund indicates that the majority of its allotment is made in financial services, healthcare, chemicals, FMCG, and engineering industries. The top equity holdings of SBI emerging businesses fund include P&G Hygiene and Health Care, HDFC Bank, Divi’s Laboratories, Great Eastern shipping company and Solar industries. These companies are among the top performers in the country and offer significant returns to the investors. The scheme ensures that investors are yielding high profits over a long period of time.
SBI emerging businesses fund is one of the must-have schemes for one's portfolio, which can bear considerable risk appetite for earning substantial returns in the future. It is advisable to add the scheme to your portfolio to accomplish your long-term financial goals. You can apply online through the official website of SBI mutual fund or can call the SBI mutual fund office, and the team will guide you with a step by step process on how to invest. On any page of the SBI website, scroll to the top right section of the screen, and you will find a button that shows your interest in investing in the mutual fund. You may also physically walk into the company branch and fill up your KYC form after which you will be guided on how to invest through SBI mutual funds. Also, there is a dedicated toll-free number you can call which is available 24x7. You can also send an SMS showing your interest in the SBI mutual fund scheme.
Below is the list of documents required to apply for SBI emerging businesses fund
What is SBI emerging fund?
SBI emerging fund is now known as SBI focused equity fund. This scheme invests across all market capitalisation and is, therefore, a multi-cap fund. It is an open-ended growth plan that yields varied benefits to investors in the long run.
What is SBI focused equity fund?
SBI focused equity is nothing but SBI emerging businesses fund. The fund evaluates and focuses on the new and emerging businesses within India, which could potentially offer high growth.
How can I change my SBI mutual fund online?
You can invest, redeem or switch from one scheme to another online with SBI MF online services. You can switch your investment from one open-ended fund to another, within the SBI fund house for better financial planning. To change your SBI mutual fund online, you need to fill up a switch form specifying the amount or number of units to be switched from the source scheme and name of the target scheme.
