SBI Funds Management Limited · NSE:SBIFUNDS
SBI Funds Management — SBI Funds Management Private — Investor Presentation (August 2021)
25 slides from SBI Funds Management's investor presentation, Aug 12, 2021
Slide 1: NFO Period: August 12 – August 25, 2021
NFO Period: August 12 – August 25, 2021
Slide 2: Quotes from Warren Buffett and Morgan Housel
“You only have to do a very few things right in your life so long as you don’t do too many things wrong.” - Warren Buffett “Doing well with money isn't necessarily about what you know. It's about how you behave.” – Morgan Housel
Slide 3: Equity Markets go through Cycles, so does investor behaviour
Equity Markets go through Cycles, so does investor behaviour What we do… Maximum Financial Risk Euphoria; Want to buy more Excitement; Over-confidence Complacency / Ignorance Thrill to invest more Anxiety Optimism Denial Positive outlook Optimism Fear Relief Panic Hope for survival Depression; Want
Slide 4: Buy low, Sell high
Buy low, Sell high What we should do… For a volatile and unpredictable market… Increase allocation to other asset classes Increase allocation to Equity Hedge with a portion of Arbitrage Buy low, Sell high strategy To navigate through volatile market, investor should ignore the noise and focus on thi
Slide 5: But does it really happen?
But does it really happen? Instead, Investors end up Buying High & Selling Low • Highest average net inflows were seen when market was overvalued • Most often, investor returns are lower than the investment PE range for Avg. Monthly Net Valuation returns S&P BSE Sensex Inflow in Equity Mutual Fund (
Slide 6: Timing the market within a particular asset class like equities is difficult
Timing the market within a particular asset class like equities is difficult… Equity Net Sales vs. 1-year historical return trend Past 1 year return (%, LHS) Total equity net sales (Rs. crores, RHS) Inflows in equity-oriented schemes have broadly tracked the past 1-year returns historically Attempt
Slide 7: Even timing within broad asset classes is difficult in short term
…Even timing within broad asset classes is difficult in short term Winners keep rotating 1 - Year Returns (%) between various asset classes 2008 9.03 8.41 -51.18 2009 3.50 4.86 77.59 2010 4.96 5.12 19.22 • Predominant equity allocation is a must for a long- 2011 6.92 8.17 -23.87 term focused portfol
Slide 8: Relatively lower risk-return asset classes have a role in the portfolio
Relatively lower risk-return asset classes have a role in the portfolio Rolling 3 years Standard Deviation Rolling 3 years Correlation with Nifty 50 TRI CRISIL Composite Bond Fund Index Nifty 50 TRI CRISIL Liquid Fund Index CRISIL Composite Bond Fund Index CRISIL Liquid Fund Index • Debt and Cash as
Slide 9: So how to get the right Asset Mix?
So how to get the right Asset Mix? Option 1 Option 2 Understand the Equity & Fixed Income market Select Stocks / Instruments / Funds Invest in Keep a close watch on how equity & debt market is SBI Balanced Advantage Fund changing & Devise a strategy to calculate the asset mix and adjust for changing
Slide 10: Presenting SBI Balanced Advantage Fund
i ©. SBI MUTUAL FUND = | BALANCED ADVANTAGEFUND An open-ended dynamic asset allocation fund in ~
Slide 11: SBI Balanced Advantage Fund – Fine tune your asset allocation needs!
SBI Balanced Advantage Fund – Fine tune your asset allocation needs! To provide investors with an opportunity for WHAT DO long-term capital appreciation. WE AIM It aims to capture the potential upside and limit the downside in volatile equity markets. LONG EQUITY ARBITRAGE FIXED Basis several parame
Slide 12: SBI Balanced Advantage Fund – Intended Template Taxation
SBI Balanced Advantage Fund – Intended Template Long Equity Fixed Income (for Wealth (to provide Stability) creation) Equity 0%-35% 65%-100% Arbitrage (to limit the downside risk) Taxation The Scheme will have Equity taxation when the allocation to Equity is >=65% * Though it is a dynamic asset allo
Slide 13: Three-tiered Investment Strategy
Three-tiered Investment Strategy (Proposed strategy) Proposed Investment Strategy Asset Allocation Strategy Tilt Stock / Security Selection • Asset allocation at any given point of time will be decided by the Fund Managers, using parameters such as Sentiment Indicator, Valuations and Earnings Driver
Slide 14: Tier 1: Finding the right Asset mix
Tier 1: Finding the right Asset mix Step 1: Sentiment Indicator Valuations Multiple parameters to determine a value Metrics used for evaluation • Breadth of the market • Trailing PE • Retail participation • Shiller PE • Mutual Fund flows • Earnings yield/ Shiller Earnings yield • Primary market acti
Slide 15: Tier 2, 3: Strategy Tilt & Stock Selection
Tier 2, 3: Strategy Tilt & Stock Selection Quantitative Framework to determine the Strategy Tilt Tier 2: Strategy tilt in terms of market cap allocation, style skewness – Strategy Tilt Value/ Growth/Quality and sector preference is determined using a quantitative framework Equity • Stock picking bas
Slide 16: Stock Selection Process
Stock Selection Process Asset Allocation Stock / Security Model Selection Determining the style skewness • Market capitalization • Value / Growth / Quality • Generating alpha through Equity • Sector preference • Stability through Debt Deciding the asset mix • Equity: Portfolios based on high between
Slide 17: Simplifying investments
Simplifying investments Asset Allocation Experts to manage Dynamically managed Why struggle when you Asset allocation basis the can leave the work for the market outlook experts Diversification Complete flexibility Diversification across Few things to keep Uniqueness of the asset classes to investme
Slide 18: Who should invest?
Who should invest? TARGET AUDIENCE Investors looking for a Investors looking for Risk-averse Equity Dynamic solution long-term Investors with minimum for the right mix of Wealth Creation 3 years+ of Investment Debt & Equity Horizon
Slide 19: SBI Balanced Advantage Fund – Fund Facts
SBI Balanced Advantage Fund – Fund Facts Type of Scheme An open-ended dynamic asset allocation fund Fund • Mr. Dinesh Balachandran & Mr. Gaurav Mehta for Equity portion Managers • Mr. Dinesh Ahuja for Debt portion • Mr. Mohit Jain is the dedicated fund manager for managing overseas investments Bench
Slide 20: SWP (A) for regular cash flow requirements
SWP (A) for regular cash flow requirements We talked about Investments, but what about the Withdrawal plan? Need We make investments to plan for a better future. But all of us have the need for regular cash flow. Systematic Withdrawal Plan (SWP) is a ready-made tool to get regular cash flows in a ve
Slide 21: SWP (A) for regular cash flow requirements
SWP (A) for regular cash flow requirements Benefits: SWPs provide the confidence of getting a fixed Indexation Indexation benefit on LTCG for non-equity funds. Confidence amount at a pre-determined frequency. Wealth Long-term wealth creation opportunity along with Allows the investor to change the w
Slide 22: Strong Established Partnership
Strong Established Partnership Strong Indian presence: extended international reach India’s premier and largest bank with over 200 years experience (Estd: 1806) € 1.750 trillion in Assets under Management Ranked 43rd among the top banks globally in N°1 in Europe by AuM and in the Top 10 worldwide te
Slide 23: SBI Funds Management Private Limited
SBI Funds Management Private Limited Broad Investor Base Rs. 5,23,198 crores* AAUM in mutual funds AAUM Rs. 5,23,198 crores Asset management across mutual funds, segregated managed accounts, domestic advisory & offshore Experienced Investment Team advisory business Multiple asset classes ranging fro
Slide 24: Fund Managers’ Profile
Fund Managers’ Profile Dinesh Balachandran, CFA Gaurav Mehta, CFA Dinesh Ahuja Mohit Jain, CFA Fund Manager - Overseas Fund Manager - Equity Fund Manager - Equity Fund Manager - Debt Investments Industry Experience: 20 years Industry Experience: 15 Years Industry Experience: 23 years Industry Experi
Slide 25: Disclaimer
Disclaimer This presentation is for information purposes only and is not an offer to sell or a solicitation to buy any mutual fund units/securities. The views expressed herein are based on the basis of internal data, publicly available information & other sources believed to be reliable. Any calcula
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