SBI Mutual Fund was established in 1987 and traces its lineage to SBI, India’s largest banking enterprise. In 2004, it entered a joint venture with France’s Société Générale Asset Management. The fund house has a very wide reach and a good track record in wealth creation.
Asset allocationThe break-up of assets worth Rs 7,376 crore for equity funds, balanced funds and monthly income plans.
Equities: 74.11
%Debt: 1.08%
Cash: 24.81%
Profitable venture
The fund house gained immensely during the bull run from 2004 to 2008. Its post-tax profit grew at 136% from 2006-7 to 2007-8.
2006-7: Rs 29.77 crore
2007-8:
Rs 70.32 crore
Top 5 fund schemes
Retail investors contribute up to 20% of the total assets under management.
Magnum Instacash:
21.7%
SBI Short Horizon-Ultra Short Term: 20.7%
Tax Gain: Scheme: 9.0%
SFU-Contra Fund: 6.2%
Infrastructure Fund-Series I: 4.5%
Top 5 equity holdingsThe value of the Reliance Industries stock held by the AMC is Rs 435.25 crore (as on 31 Jan 2009).
Reliance Industries: 5.6%
Bharat Heavy Electricals: 3.8%
ICICI Bank: 3.6%
Oil & Natural Gas Corpn: 3.6%
State Bank of India: 3.3%
The holdings are % share of the total equity value, not the total AUM
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Fund house styleSBI Mutual Fund has lost momentum due to two factors. One, the carnage at the bourses has inflicted a heavy damage on the AMC’s star funds, resulting in more than a 50% erosion of net asset values. Two, Sanjay Sinha’s move from SBI to DBS Chola on 16 September 2008 has badly shaken the fund’s management
If you had invested Rs 10,000 on 1 January 2000 in the Magnum SFU-Contra Fund, it would be worth Rs 48,995 on 24 February 2009, an absolute growth of 390%.
