SBI MULTICAP FUND NFO

SBI MULTICAP FUND NFO

SBI Mutual Fund will shortly be launching a NFO (New Fund Offer) for a multicap equity fund, SBI multicap Fund. The NFO will go live on 14 Feb 2022 and will close on 28 Feb 2022. Even though multicap funds are very popular among investors, there are currently not many funds in this category after SEBI made changes in its mandate for multicap funds in the year 2020. 

Let us understand various important aspects of this NFO.

Investment Objective 

The investment aims to:

1. Identify opportunities through bottom up stock picking 
2. Unconstrained, sector agnostic approach aims to look at the viability of businesses than the sector it operates in.
3. Absolute return orientation towards investing with focus on investing in quality business with superior economics.

KEY FEATURES OF SBI MULTICAP FUND NFO 

1. No sector bias, sector allocation resultant of button up stock picking.
2. Diversified allocation across market capitalisations at all times.
3. 25% portfolio flexibility to invest in market cap agnostic manner
4. Aims to invest in the best ideas across sectors 
5. Combining the strength of high conviction stock ideas of the 15 sector analysts
6. Style agnostic as it may be the outcome of stock selection from the high conviction ideas. 

ADVANTAGES

1. Unconstrained, sector agnostic approach
2. Active stock management with bottom up strategy 
3. Strong pedigree of Investment Expertise across market cap
4. Style agnostic with broader opportunity set for stock selection
5. High conviction plays through an analyst portfolio.

WHY INVEST IN SBI MUTUAL FUNDS

1. Trusted by over 10 million investors 
2. Signatory of UNPRI and CFA asset manager code of conduct 
3. Managing assets for over 35 years 
4. An array of digital tools for ease of transaction
5. Investment team of 65 members with an average experience of 15 years in the country.
6. Servicing investors across 99% pin codes of the country.

FUND FACTS 

EXIT LOAD

• NIL - if units purchased or switched in from another scheme of the fund are redeemed switched out upto 10% of the units (the limit) purchased or switched on or before 1 year from the date of allotment.
• 1% of the applicable NAV - if units purchased or switched in from another scheme of the fund are redeemed or switched out in excess of the limit on or before 1 year from the date of allotment.
• NIL - If units purchased or switched in from another scheme of the fund are redeemed or switched out after 1 year from the date of allotment.

SUITABLE FOR

1. Direct equity investors:

One stop solution that offers diversification across market cap unlike holding on to individual stocks. 

2. Consolidation:

Investors having multiple investments across market cap, looking for consolidation through a single solution.

3. Millennial and First time investors:

Investor looking for long term wealth creation (>5 years), wanting to have an unbiased flavour of market caps. 

4. Long-term investors:

Long term investors aiming to build wealth to meet their long term financial goals with a potentially better risk return trade off. 

WHAT IS MITRA SIP?

Mitra SIP is a potential tool that is a combination of potential wealth creation and systematically reaping benefits of the same. 

1. SIP is a highly efficient tool for disciplined investment for attaining rupee cost averaging. 
2. Identically, SWP is a tool that can be used for setting up systematic cash flows through automated withdrawals.
3. MITRA SIP is a tool that combines these two powerful tools and lets investors create a comprehensive financial solution that can be used effectively to plan for investor’s future goals.