LETTER TO UNITHOLDER OF SBI DUAL ADVANTAGE FUND – SERIES III

Dear Investor,

We thank you for choosing us to fulfil your financial goals by investing in SBI Dual Advantage Fund – Series III (the Scheme)
having tenure of 36 Months. The scheme is due for maturity on June 19, 2017 (existing maturity date).

Taking into consideration the current macro-economic conditions and regulatory environment and factors affecting the liquidity
and interest rates, in our view it could be in the interest of the unit holders of the Scheme to continue to hold the investments
in the Scheme. It is therefore proposed to rollover the Scheme (extend the maturity period) for the further period of 366 days.

Pursuant to proviso to Regulation 33(4) of SEBI (Mutual Funds) Regulations, 1996, the rollover of the Scheme can be done if
the purpose, period and other terms of the rollover and all other material details of the Scheme including the likely composition
of assets immediately before the rollover, the net asset value of the Scheme, are disclosed to the unit holders. In this regard,
please find below the details of the rollover so that we can take an appropriate and informed decisions:

1. Purpose - The purpose of the rollover (extension of maturity of the Scheme) is to continue to benefit from the
prevailing yields in the fixed income market taking into consideration the current economic and regulatory
environment.

2. Period for which the scheme is rollover – 366 days, accordingly the revised maturity date of the Scheme will be
June 20, 2018 (Or immediately succeeding Business day, if that day is not a Business Day).

3. Terms of Rollover

Upon rollover of the Scheme, certain provisions of the Scheme stand modified. The existing and modified provisions
are stated below:

Particular Existing provision Modified provision

Asset Instruments Indicative Risk Instruments Indicative Risk Profile

Allocation allocations Profile allocations
(% of total (% of total
assets)$ assets)$
Minim Maximu High/Me
um m dium Minimu Maxim High/Medi
/Low m um um
Debt and debt 50% 95% Low to /Low
related Medium Debt and debt 90% 95% Low to
instruments* related Medium
instruments*
Money market 0% 25% Low to
& Money
instruments Medium
market
Equity and 5% 25% High instruments
equity related Equity and 5% 10% High
instruments equity related
including instruments
derivatives including
derivatives
* Exposure to domestic securitized debt may be to the
extent of 40% of the net assets. * Exposure to domestic securitized debt may be to the
$ Exposure to derivatives may be to the extent of 30% extent of 40% of the net assets.
of the net assets. $ Exposure to derivatives may be to the extent of 30%
of the net assets.

Floors and The scheme SBI Dual Advantage Fund – Series III shall The Scheme will have exposure in the following
ceiling invest in various securities/instruments as mentioned instruments:
within a below with the ratings mentioned against the type of 1. Floor and Cap (within a range of 5%) of the
range of instrument. As per SEBI circular Cir/IMD/DF/12/2011 intended debt allocation against each sub asset
5% of the dated August 01, 2011, the scheme is allowed to invest class/credit rating will be as follows:
intended within a range of 5% of the intended allocation (floor
allocation and cap) against each sub asset class/credit rating.
against
  
each sub Credit AA A1 AA A BBB Credi Credit AA A1 AA A BBB Credi
class of rating A + t rating A + t
asset Ratin Ratin
g g
(Not (Not
Instruments appli Instruments appli
cable cable
) )
CDs - - - - - - CDs - - - - - -
CPs - 0% - - - - CPs - 85 - - - -
- % -
5% 90
NCDs - - 80% - - - %
- NCDs - - 10% - - -
85% -
Securitized - - - - - - 15%
debt Securitized - - - - - -
CBLO, - - - - - - debt
Governmen CBLO, - - - - - 0%
t of India Governmen -
dated t of India 5%
securities, dated
Treasury securities,
Bills, Cash Treasury
Manageme Bills, Cash
nt Bills & Manageme
Reverse nt Bills &
Repos Reverse
As per SEBI Circular, variations between indicative Repos
portfolio allocation and final portfolio will not be
As per SEBI Circular, variations between indicative
permissible except for the conditions as mentioned
portfolio allocation and final portfolio will not be
below:
permissible except for the conditions as mentioned
below:
Securities with rating A and AA shall include A+ and A- &
AA+ and AA- respectively. All investment shall be made
2. Securities with rating A and AA shall include A+
based on the rating prevalent at the time of investment.
However, in case of an instrument having dual ratings, and A- & AA+ and AA- respectively.
the most conservative publicly available rating would be 3. All investment shall be made based on the rating
considered. Scheme can invest in same instruments prevalent at the time of investment. However, in
having higher credit rating than the credit rating case of an instrument having dual ratings, the
indicated in the above table. In case of non-availability most conservative publicly available rating would
of and taking into account the risk-reward analysis of be considered.
CPs, NCDs (including securitized debt), the scheme may
4. Scheme can invest in same instruments having
invest in CDs of highest ratings (public sector banks as
well as private sector banks) and CBLO having higher credit rating than the credit rating indicated
equivalent or higher ratings. At the time of building up in the above table.
the portfolio post NFO and towards the maturity of the 5. In case of non-availability of and taking into
scheme, there may be a higher allocation to cash/cash account the risk-reward analysis of CPs, NCDs
equivalents/ in units of liquid schemes of SBI Mutual (including securitized debt), the scheme may
Fund. In the event of any deviations from the floor and invest in CDs of highest ratings (public sector
ceiling of credit ratings specified for any instrument, the
banks as well as private sector banks), CBLO and
scheme portfolio will be rebalanced within 30 days from
the date of said deviation. T-Bills having equivalent or higher ratings.
6. At the time of building up the portfolio post
rollover and towards the maturity of the scheme,
there may be a higher allocation to cash/cash
equivalents/ in units of liquid schemes of SBI
Mutual Fund.
7. In the event of any deviations from the floor and
ceiling of credit ratings specified for any
instrument, the scheme portfolio will be
rebalanced within 30 days from the date of said
deviation.
8. There shall be no deviation between the intended
allocation and actual allocation post the rollover
period, except for the situation stated in (4), (5),
(6) and (7) above.
  

4. Other details of the Scheme:

a) Portfolio of the Scheme as on June 05, 2017 is as follows:

Exposure /Market
Company/Issuer/Instrument Industry/
Quantity Value (Rs. In % to NAV
Name Rating
Lakh)
Equity Instruments 1,966.56 9.61%
KOTAK MAHINDRA BANK LTD 19000 183.73 0.90%
TUBE INVESTMENTS OF INDIA LTD 8500 57.15825 0.28%
LARSEN & TOUBRO LTD 7500 135.3675 0.66%
HERO MOTOCORP LTD 2700 103.54365 0.51%
MAHINDRA & MAHINDRA FINANCIAL
30000 112.05
SERVICES LTD 0.55%
MARUTI SUZUKI INDIA LTD. 3300 235.1481 1.15%
ICICI BANK LTD 47500 151.88125 0.74%
STATE BANK OF INDIA 84000 241.29 1.18%
THE RAMCO CEMENTS LTD (MADRAS
31000 221.216
CEMENTS LTD) 1.08%
INDIAN OIL CORPORATION LTD 25000 105.5125 0.52%
COLGATE PALMOLIVE INDIA LTD 18100 184.75575 0.90%
AUROBINDO PHARMA LTD 23100 136.97145 0.67%
PI INDUSTRIES LTD 12000 97.938 0.48%
Debt Instruments 6,805.20 33.26%
NATIONAL BANK FOR AGRI. & RURAL
CRISIL AAA 200 2,000.86
DEVT. 9.78%
CHOLAMANDALAM INVT & FIN CO.
ICRA AA 240 2,402.06
LTD 11.74%
FAMILY CREDIT LTD CARE AA+ 96 2,402.28 11.74%
CBLO 1,001,216,664 10,012.17 48.93%
CASH & OTHER RECIVABLES 167,861,992 1,678.62 8.20%
Treasury Bills Nil Nil
Total Net Assets 20,462.55 100.00%

b) The net asset under management under the scheme and the NAV of different plans/options under the scheme as
on June 05, 2017 are as below:

Name of the Scheme along with Plans/Options AUM (in lakhs) NAV (in Rs.)
SBI Dual Advantage Fund – Series III - Regular Plan - Growth 19,577.21 12.3564
SBI Dual Advantage Fund – Series III - Regular Plan – Dividend 542.08 12.3565
SBI Dual Advantage Fund – Series III - Direct Plan - Growth 331.35 12.3943
SBI Dual Advantage Fund – Series III - Direct Plan - Dividend 11.91 12.3943

All the other provisions of the Scheme Information Document (SID)/Key Information Memorandum (KIM)/addenda except as
specifically modified herein above remain unchanged.

As a unitholder under the Scheme, you may choose to indicate your concurrence by signing the enclosed consent letter and
submit the same at the nearest “Official Point of Acceptance” of SBIMF, latest by June 19, 2017 till 3.00 p.m. You can also
download the consent letter available on our website www.sbimf.com.

Alternatively, you may also provide your consent to rollover by sending an email to rollover@sbimf.com from your registered
email address in the Folio, clearly mentioning your Name, Folio Number and Scheme/Plan. After the rollover, existing
subscription details of the units under the Scheme viz. plan, option etc. shall remain unchanged. In case we do not receive your
consent to the above mentioned changes, your investment under the Scheme shall be redeemed at applicable NAV as per the
original maturity date i.e. June 19, 2017.

The Scheme is listed on National Stock Exchange of India Limited (NSE) and shall be suspended from trading from the original
maturity date. The units of the Scheme will be made available for trading on NSE only after completion of rollover of the
Scheme.

Unit holders are also advised to consult his or her own financial advisors with respect to the financial or tax implications if any,
arising out of his or her participation in the rollover of the Scheme.
  

Product labeling
This product is suitable for investors who are Riskometer
seeking*:
 income and capital appreciation
 investment primarily in Debt and Money
Market Instruments for regular returns &
Equity and equity related instruments for
capital appreciation.

*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.

For SBI Funds Management Private Limited

Sd/-
Place: Mumbai Anuradha Rao
Date: June 07, 2017 Managing Director & CEO
_______________________________________________________________________________________________________

Asset Management Company : SBI Funds Management Private Limited (A Joint Venture between SBI & AMUNDI) (CIN :
U65990MH1992PTC065289), Trustee : SBI Mutual Fund Trustee Company Pvt. Ltd. (CIN : U65991MH2003PTC138496),
Sponsor : State Bank of India. Regd Office - 9th Floor, Crescenzo, C– 38 & 39, G Block, Bandra-Kurla Complex, Bandra (East),
Mumbai - 400051 Tel : 91-022-61793000 Fax : 91-022-67425687, E-mail : partnerforlife@sbimf.com • www.sbimf.com

NSE Disclaimer: It is to be distinctly understood that the permission given by NSE should not in any way be deemed or
construed that the Scheme Information Document has been cleared or approved by NSE nor does it certify the correctness or
completeness of any of the contents of the Scheme Information Document. The investors are advised to refer to the Scheme
Information Document for the full text of ‘Disclaimer Clause of NSE’.

Mutual Fund investments are subject to market risks, read all Scheme related documents
carefully