Fund managers have different yardsticks for buying stocks. Some go by a company's profitability. Others give more weightage to future prospects. And then there are those who choose to be contrarian. Here's an equity diversified fund with an unusual twist in its asset allocation. The SBI One India Fund aims to generate long-term capital appreciation by investing in a diversified basket of stocks focusing on all four regions of India.
The allocation as a percentage of equity assets to each region (North, South, East, West) would be between 15% and 55%. The allocation will be free of any market capitalisation bias. The fund defines a region as a group of states and Union territories. Companies of a region will refer to those that either have their headquarters, headoffice, major manufacturing facilities, or major revenue generating activity from that region. Further, the equity allocation to a region will depend on economic development, market opportunities, changing regulation, and flow of investment to a region, demographic profile, and political and economic factors.
| Scheme Details |
| Offer closes: 22 December |
| Fund category: Diversified equity |
| Fund manager: Sanjay Sinha |
| Type: Closed-ended for three years |
| Benchmark index: BSE200 |
| Minimum investment: Rs 5,000 |
| Load structure |
| Till it is closed-ended, there is no entry load. Exit load will be charged if units redeemed before three years. There is nLoad Structureo fixed exit load but a proportionate amount of issue expenses will be recovered.When it turns open-ended, entry load will be 2.25% for investments up to Rs 5 crore. |
The designated fund manager Sanjay Sinha has been with SBI for a year now, managing various equity oriented funds. He currently manages assets worth over Rs 4,700 crore.
Performance of similar funds
Fund |
Launch |
6month |
1year |
2year |
| DSPML Equity | Apr 1997 | 28.33 | 52.43 | 56.98 |
| Franklin India Prima Plus | Sep 1994 | 32.82 | 52.26 | 51.86 |
| HDFC Equity | Dec 1994 | 28.75 | 46.23 | 55.19 |
| Reliance Vision | Oct 1995 | 28.04 | 49.31 | 54.02 |
Performance of schemes from SBI Mutual Fund Fund Launch 1-year 3-year 5-year Magnum Contra Jul 1999 55.58 70.13 63.06 Magnum Equity Nov 1990 54.89 42.70 38.73 Magnum Global Sep 1994 67.67 74.17 57.08 Magnum Multiplier Feb 1993 49.73 54.86 45.82
While investing, keep three basic things in mind. One, this is just another diversified equity fund. Two, you would be investing when the markets are at 14000 level. And three, the fund will begin investing only about a month from now.
Asset allocation
| Equities and related instruments including derivatives | 70-100% |
| Debt and money market instruments | Up to 30% |
| ADRs, GDRs and F oreign Securities | Up to 20% |
