Mutual Fund News : SBI Mutual Fund Introduces SBI Multicap Fund

Publish Date:

SBI Mutual Fund has launched an open-ended equity scheme – SBI Multicap Fund.

The scheme will predominantly invest across large cap, mid cap & small cap stocks.

The investment objective of SBI Multicap Fund is to provide investors with opportunities for long term growth in capital from a diversified portfolio of equity and equity-related instruments across market capitalization.

However, there can be no assurance that the investment objective of the Scheme will be realized.

Under normal circumstances, 75% to 100% of the fund's portfolio will be invested in Equity & Equity related instruments across large, mid, and small-cap companies. The scheme will invest a minimum of 25% of total assets each in Large, Mid, and Small Cap stocks. Whereas up to 25% of its assets can be invested in opportunities in foreign securities including ADR/GDR/Foreign equity and overseas ETFs. It can also invest up to 25% of its assets in Debt securities (including securitized debt & debt derivatives) and money market instruments, and up to 10% of its assets in Units issued by REITs and InvITs.

The investment strategy of SBI Multicap Fund as mentioned in the Scheme Information Document (SID) is as follows:

Being in the Multi-Cap Fund category, SBI Multicap Fund will invest across all market capitalization categories. The scheme will invest a minimum of 25% each in large, mid, and Small Cap stocks.

The scheme will follow a bottom-up approach to stock-picking and choose companies across sectors. The scheme will invest in a diversified portfolio of stocks across market capitalization. Large Cap Stocks – 1st -100th company in terms of full market capitalization; Mid Cap:101st to 250th company in terms of full market capitalization; Small Cap: 251st company onwards in terms of full market capitalization. The exposure across these stocks will be in line with limits/classification defined by AMFI/SEBI from time to time.

The Scheme will invest in Equity and Equity related instruments, Debt securities (including securitized debt) and money market instruments, Units issued by REITs and InvITs, Derivatives, foreign securities including ADR/GDR/Foreign equity and overseas ETFs, Repo in Corporate Debt, securities lending, Mutual Fund units including ETFs, Credit Enhancement / structured obligations such as corporate / promoter guarantee.

SBI Multicap Fund’s performance will be benchmarked against Nifty 500 Multicap 50:25:25 TRI (Total Return Index).

The fund will be managed by Mr Rama Iyer Srinivasan (Equity), Mr Mohit Jain (Offshore Equity).

The NFO opens for subscription on February 14, 2022 and closes on February 28, 2022. The scheme will reopen for ongoing subscription and redemption within five business days from the date of allotment of units.

The fund’s NAV is priced at Rs 10/- per unit during the NFO period. The minimum subscription amount is Rs 5,000 and in multiples of Re 1 thereafter.

The fund offers Regular Plan and Direct Plan having Growth and Income Distribution cum capital withdrawal (IDCW) (Payout and Reinvestment).