SBI Focused Equity Fund, previously known as SBI Emerging Businesses Fund, made its debut in October 2004. Subsequent to SEBI rationalisation, this scheme was reclassified as a focused fund which means it follows a focused investment strategy and can thus invest in a maximum of 30 stocks. The scheme invests across all market capitalisations and is therefore a multi cap focused fund. The scheme featured an AUM (Assets Under Management) of Rs. 3,459 crore as on January 31, 2019. The scheme has shown an impressive performance over the recent years.
Key Statistics of SBI Focused Equity Fund Performance*
|Fund Performance||1 Year||3 Year||5 Year|
*Data Source – Pulse Labs. All data as on January 31, 2019.
Key Details of SBI Focused Equity Fund
The following are some of the key details of the SBI Focused Equity Fund as of January 31, 2019:
- Inception Date – October, 2004
- AUM – Rs. 3,459 crore
- Fund Manager – Mr. R. Srinivasan (since May 2009)
- Benchmark – S&P BSE 500 Index (TRI)
- Expense Ratio – 1.32% (Direct)
- Minimum Investment Requirement – Rs. 5,000
SBI Focused Equity Fund Performance vs Benchmark*
|Instrument||1 Year||3 Year||5 Year|
|SBI Focused Equity Fund||-6.36%||13.49%||18.73%|
|Benchmark (S&P BSE 500 Index – TRI)||-5.71%||13.97%||15.22%|
*Data Source – Pulse Labs, Asia Index. All data as of January 31, 2019.
SBI Focused Equity Fund provided an attractive return of 13.49% over the last 3 year period as of January 2019. However, the 3 year returns of this SBI Mutual Fund fell a little short of the 13.97% return yielded by its benchmark over the last 3 year period. The scheme demonstrated an extraordinary performance over the previous 5 year period by posting return of 18.73% as compared to return of 15.22% posted by its benchmark index S&P BSE 500 for the same period (as of January 2019). The scheme is suitable for investors looking for potentially high returns by investing in an equity mutual fund with a focused portfolio.
Asset Allocation of SBI Focused Equity Fund
The following is the Asset Class-Wise Investment Breakup of SBI Focused Equity Fund as of January 31, 2019:
|Asset Class||Portfolio Allocation (% of total assets)|
|Large Cap Equities||50.11%|
|Mid Cap Equities||13.30%|
|Small Cap Equities||22.17%|
|Cash/Cash Equivalent Instruments/Short Term Debt||14.42%|
*All data as of January 31, 2019.
SBI Focused Equity Fund is a relatively aggressive focused fund which has given significant exposure to mid and small cap companies in its portfolio. Mid and small cap companies are more responsive to economic and stock market changes than large cap companies which are fundamentally strong. The scheme’s large cap holdings stand at 50.11% as of January 2019. The scheme has invested around 13.30% and 22.17% in mid and small cap equities respectively. The scheme features significantly liquidity in its portfolio with 14.42% of assets invested in cash/cash equivalent and debt instruments as of January 2019. This liquidity can help the scheme capitalise on future market opportunities in case of a correction.
The following is a list of the top sectors that the equity portion of the SBI Focused Equity Fund is invested in as of January 31, 2019:
|Investment Sector||% of Assets Allocated|
*Data as of January 31, 2019.
SBI Focused Equity Fund has maintained its aggressive stance in the allocation of its assets across multiple sectors. The scheme has given a higher weightage to consumption-driven sectors than defensive sectors which function relatively independent of national-level economic changes. The top 5 sector holdings of the scheme are Financial Services (31.30%), Consumer Goods (21.15%), Services (7.27%), Industrial Manufacturing (6.66%) and Chemicals (5.28%).
Top Individual Holdings of SBI Focused Equity Fund
The following are the top 10 individual equity investments of the SBI Focused Equity Fund:
|Investment Name||Weight in Portfolio (%)|
|Procter & Gamble Hygiene And Health Care||7.18%|
|State Bank Of India||5.96%|
|Kotak Mahindra Bank||5.46%|
|Hatsun Agro Product||4.70%|
|Solar Industries India||3.33%|
*Data as of January 31, 2019.
Investment Facts of SBI Focused Equity Fund
- SBI Focused Equity Fund, earlier known as SBI Emerging Businesses Fund, has a proven track record spanning close to 15 years.
- This focused scheme has generated impressive returns of 13.49% and 18.73% over the last 3 year and 5 year periods respectively.
- The portfolio of this scheme features a diversified approach across market caps as well as sectors. The maximum sectoral allocation of this focused scheme from SBI Mutual Fund is in financials which account just over 31% of total assets (as of January, 2019).
- The scheme follows a relatively aggressive strategy in allocation of its assets across market capitalisations as well as across sectors.
- SBI Focused Equity Fund is a suitable scheme for investors who are looking for a fund capable of generating high returns through a focused investment approach along with moderate levels of risk level.