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SBI One India Fund

The regional model is a marketing ploy. In the end, the SBI One India Fund is just another diversified equity scheme.

Print Edition: December 28, 2006

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 EquityDec 1994 28.75  46.23 55.19
Reliance Vision Oct 199528.04 49.31  54.02

Performance of schemes from SBI Mutual Fund

 FundLaunch 1-year 3-year 5-year 
Magnum Contra  Jul 1999 55.58 70.1363.06 
Magnum Equity Nov 1990 54.89 42.70  38.73
Magnum Global Sep 1994 67.67 74.17 57.08 
Magnum MultiplierFeb 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 derivatives70-100% 
Debt and money market instruments Up to 30%
 ADRs, GDRs and F oreign SecuritiesUp to 20% 

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