FINANCIAL SERVICES

SBI Mutual
Funds
Presented by Yogita
Mutkule
Introduction to SBI MF
Content/Overview
Brief History of SBI MF

Products and Services provided

Equity Funds

Why invest in Equity Funds?

Summary

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Introduction
SBI Mutual Fund was incorporated in 1987 with
its corporate head office located in Mumbai, India.
SBIFMPL is a joint venture between the State
Bank of India, an Indian public sector bank, and
Amundi, a European asset management company. A
shareholder agreement in this regard has been
entered on April 13, 2011, between SBI &
AMUNDI Asset Management.
Accordingly, SBI currently holds 63% stake in
SBIFMPL and the 37% stake is held by AMUNDI
Asset Management through a wholly owned
subsidiary, Amundi India Holding. SBI &
AMUNDI Asset Management shall jointly develop
the company as an asset management company of
international repute by adopting global best
practices and maintaining international standards.

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History
The mutual fund industry in India originally began in 1963 with the Unit Trust of
India (UTI) as a Government of India and the Reserve Bank of India initiative.
Launched in 1987, SBI Mutual Fund became the first non-UTI mutual fund in
India.
In July 2004, State Bank of India decided to divest 37 per cent of its holding in
its mutual fund arm, SBI Funds Management Pvt Ltd, to Societe Générale Asset
Management, for an amount in excess of $35 million.
Post-divestment, State Bank of India's stake in the mutual fund arm came down
to 67%. In May 2011, Amundi picked up 37% stake in SBI Funds Management,
that was held by Societe Générale Asset Management, as part of a global move to
merge its asset management business with Crédit Agricole.
SBI Funds Management Private Limited (SBIFMPL) has been appointed as the
Asset Management Company of the SBI Mutual Fund. SBIFMPL is a joint
venture between the State Bank of India, an Indian public sector bank, and
Amundi, a European asset management company.
As of September, 2019, the fund house claims to serve 5,809,315 unique
investors through approximately 212 branches PAN India.
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Products and Services Provided

Equity Funds: The company offers a wide array of equity funds ranging from
diversified to thematic and sector-based offerings.
Debt Funds: The company has a robust product range matching all maturities for
cash management. The focus of investment philosophy is primarily on the product's
liquidity as well as on the quality of the securities held in the portfolio.
Hybrid Funds: Hybrid Schemes invest in a mixture of multiple asset classes like
debt, equity, and gold in different proportions based on the investment objective.
The company has a suite of products across the risk-spectrum including a multi-
asset offering that has gold in the portfolio into the traditional mix of equity and
debt.

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Equity Funds

Equity Funds are mutual fund schemes which invests their assets in stocks of
different companies based on the investment objective of the underlying scheme.
These funds are a great investment option for capital appreciation as they have
the potential for long term wealth creation. Investors looking to invest for long
term and who want to gain exposure to the stock market can choose to invest in
equity funds.
Risk is higher than debt fund but offers very high growth potential for the capital.
Equity Funds can further be categorized based on their investment strategy.
Equity Funds must have a long term objective.

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which is exposed to different sectors of the economy. It also allows investment
across market capitalization. This reduces the risk as compared to investing
Why invest in Equity Mutual Funds
directly in stocks as the underperformance of some stocks can be offset by the
outperformance of other stocks.
Better inflation adjusted returns: Compared to traditional investment avenues,
equity funds have the potential to generate better inflation adjusted returns as the
returns are market linked. Equity funds provide opportunities to reasonably grow
investors’ capital over the long term.
Expert Management: Equity funds are professionally managed by fund
managers who constantly track investment opportunities in the market while
striving to mitigate risk. This makes investments in equity funds a good option
for investors who want to gain exposure to the equity market.
Convenience: Investors have the convenience of starting a SIP (Systematic
Investment Plan), SWP (Systematic Withdrawal Plan) and STP (Systematic
Transfer Plan) making it easier for investors to invest, redeem or transfer their
units to another scheme easily.
Start Small: Anyone can start investing in equity funds through SIP with as low
as INR 500 per month.

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 Summary
 Diversified stock portfolios
have offered superior long
term inflation protection.
 Portfolio managers have
done a fairly good job in
generating positive returns.
 Those who want to eliminate
the risk element should
invest in MF.
 The performance of SBIMF
is good, and there is more
prospect chances.
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Conclusion
Hope you liked my presentation.
At the end, I would want to thank all
the spectators for showing your
commitment and interest in my work.

Yogita
You can check more about SBIMF
at
https://www.sbimf.com/en-us

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