SBI Funds Management Limited · NSE:SBIFUNDS
SBI Funds Management — SBI Funds Management Private — Investor Presentation (August 2014)
22 slides from SBI Funds Management's investor presentation, August 2014
Slide 1: Get Power of Both Equity and Debt with SBI Dual Advantage Fund Series IV
Get Power of Both Equity and Debt with SBI DUAL ADVANTAGE FUND — SERIES IV NFO PERIOD: 22 AUG - 04 SEP, 2014 This product is ho are seeking*: e Income and capital appreciation. e Investment primarily in Debt and Money Market Instruments for regular returns & Equity and equity related instruments for
Slide 2: Flow of the Presentation
Flow of the Presentation Characteristics of Equity & Debt Investor Requirement Hybrid Funds – Benefit from Dual Advantage SBI Dual Advantage Fund – Series IV Disclaimer
Slide 3: Characteristics of Equity & Debt
Characteristics of Equity & Debt
Slide 4: CRISIL Composite Bond Fund Index vs BSE Sensex: CAGR returns by market phase
Characteristics of Equity & Debt CRISIL Composite Bond Fund Index (CCBFI) Vs BSE Sensex CAGR Returns during different market phases CAGR Returns during different market phases 8% 50% 37% 7% 7% 40% 7% 30% 6% % CAGR Returns 6% 15% % CAGR Returns 20% 5% 10% 1% 4% 0% 4% -10% 3% -20% 2% -30% 1% -40% 0% -
Slide 5: CRISIL Composite Bond Fund Index vs BSE Sensex: volatility by market phase
Characteristics of Equity & Debt CRISIL Composite Bond Fund Index (CCBFI) Vs BSE Sensex Voaltility during different market phases Voaltility during different market phases 7% 40% 35% Monthly standard deviation Monthly standard deviation 6% 35% 6% 30% 5% 25% 25% 22% 4% 4% 3% 18% 20% 3% 2% 15% 2% 10%
Slide 6: CRISIL Composite Bond Fund Index vs BSE Sensex: 1, 3, 5 year returns
Characteristics of Equity & Debt CRISIL Composite Bond Fund Index (CCBFI) Vs BSE Sensex Crisil CompBex S&P BSE Sensex 40% 12% 34% 10% 35% 10% 30% % CAGR Returns 8% % CAGR Returns 8% 25% 7% 6% 20% 15% 12% 4% 11% 10% 2% 5% 0% 0% 1 Year 3 Year 5 Year 1 Year 3 Year 5 Year Period Period Crisil composite
Slide 7: Investors Conundrum
Investors Conundrum So investors faces a difficult task to choose between: Debt asset class which comes with relatively stable return & low volatility but might not beat inflation Equity asset class which can build wealth for investors but comes with high volatility The key is an efficient asset
Slide 8: Indian Investor: Investment Pattern
Indian Investor: Investment Pattern Risk averse investors Most of the investible surplus goes into bank and post office deposits Prefers to “Play Safe” and invest in debt instruments Still aspires for higher returns Reasons for such paradox Equity market – volatile, high risk - high returns
Slide 9: Investors Requirement: Low volatility investment solution
Investors Requirement : Low volatility investment solution Returns with Steady returns Volatility Hybrid Fund A product that can captures the best of both the “worlds” “Optimizing returns with low volatility
Slide 10: Hybrid Funds – Benefit from Dual Advantage
Hybrid Funds – Benefit from Dual Advantage
Slide 11: Hybrid Fund – Different asset allocation mix: performance in market phases
Hybrid Fund – Different asset allocation mix Performance – In different market phases CAGR Returns during different market phases Voaltility during different market phases 20% 16% 15% 14% 15% 12% 14% Monthly standard deviation 10% 10% 8% 7% 9% 12% 11% 6% 6% 5% % CAGR Returns 5% 10% 9% 8% 8% 0% 7% 7%
Slide 12: Hybrid Fund – Different asset allocation mix: performance in different periods
Hybrid Fund – Different asset allocation mix Performance – In different periods 8% 20% 18% 7% 7% 7% 7% 18% 16% Monthly Standard deviation 16% 6% 6% 6% 6% 14% 13% % CAGR Returns 5% 5% 5% 12% 4% 10% 4% 10% 9% 9% 8% 8% 8% 3% 8% 6% 2% 4% 1% 2% 0% 0% 1 Year 3 Year 5 Year 1 Year 3 Year 5 Year CCBFI 85% &
Slide 13: Scenario Analysis
Scenario Analysis Structure of the portfolio ensures low volatility For above calculations, it has been assumed that hybrid fund invests 82% in debt securities and 18% in equity securities. Returns on debt securities has been assumed @ 9.25% p.a. CAGR Past performance may or may not be sustained in
Slide 14: Tax Efficiency
Tax Efficiency SBI Dual Advantage Fund Debt 82% & Equity 18% Optimistic Scenario Neutral Pessimistic Equity market Equity market Equity market Equity market falls Scenario grows at 20% p.a. grows at 10% p.a. remains flat at 10% p.a. Initial Investment (Rs.) 10000 10000 10000 10000 Amount at Maturity
Slide 15: Presenting SBI Dual Advantage Fund - Series IV
Presenting SB : PALIAI LJ VU FAL. Advantage Fund - Series IV A close-ended hybrid scheme This product is suitable for investors who are seeking*: e Income and capital appreciation. e Investment primarily in Debt and Money Market Instruments for regular returns & Equity and equity related instruments
Slide 16: Investment Objective & Asset Allocation
Investment Objective & Asset Allocation Investment Objective The primary investment objective of the scheme is to generate income by investing in a portfolio of fixed income securities maturing on or before the maturity of the scheme. The secondary objective is to generate capital appreciation by in
Slide 17: Investment strategy
Investment strategy Fixed Income / Debt Investments: Investments in securities maturing on or before the date of the maturity of the Scheme Buy & hold strategy Flexibility to invest in the entire range of debt instruments Investment in AA or above rated securities only Targeted investment
Slide 18: Fund Features
Fund Features Tenure – 1111 days from the date of allotment Fund Manager - Mr. Rajeev Radhakrishnan shall manage debt portion Mr. Richard Dsouza shall manage equity portion Minimum investment: Rs. 5000 and in multiples of Re. 1 thereafter. Plans/ Options: Plans - Direct Plan & Regular Plan
Slide 19: Why invest in SBI Dual Advantage Fund?
Why invest in SBI Dual Advantage Fund? Quality Debt Portfolio High quality debt securities to minimize credit risk & matching maturity reduces interest rate risk. Investment in AA & above rated securities only. Growth Potential Primarily focus on companies that have demonstrated characteristics such
Slide 20: Target Investor
Target Investor Investors with low to medium risk profile High net worth individuals First time mutual fund investors who would like to enjoy the debt returns with an additional equity upside All investor who invests significant part of their saving in relatively “safe instruments”
Slide 21: 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. These views alone are not sufficient and should not be used for the development or implementation of an investment strategy. It should not be construed
Slide 22: Thank you
Thank you oo SBIMUTUAL FUND SBI FUNDS MANAGEMENT PRIVATE LIMITED (A joint venture between SBI & AMUNDI) A PARTWER FOR LIFE
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