SBI Magnum Balanced Fund invests in a mix of equity and debt investments. It provides a good investment opportunity to investors who do not wish to be completely exposed to equity markets, but are looking for relatively higher returns than those provided by debt funds. The scheme invests in a diversified portfolio of equities of high growth companies and balances the risk through investing the rest in a relatively safe portfolio of debt.To know more about this mutual fund check SBI Mutual Fund page
https://www.sbimf.com/Products/HybridSchemes/Magnum_Balanced_Fund.aspx
2. Introduction
WHAT IS BALANCED FUND?
CHARACTERISTICS OF EQUITY & DEBT
SBI MAGNUM BALANCED FUND
ASSET ALLOCATION
PERFORMANCE
SYNOPSIS
PORTFOLIO HOLDINGS
PERFORMANCE OF OTHER SCHEMES MANAGED BY FUND MANAGERS
FUND MANAGER BIOGRAPHIES
ABOUT SBI FM
DISCLAIMER
3. A balanced fund aims to balance the risk & return of the portfolio by
investing in more than one asset class. Generally these funds have
allocation to asset classes such as equity & debt. Equity & debt assets
classes in the fund endeavour to:
Equity
• To provide capital appreciation
• To generate returns above inflation
Debt
• To provide stability in the portfolio
• To generate consistent income from coupons
What is balanced fund?
Balanced fund aims to strike a balance between growth & stability
4. Characteristics of Equity & Debt
• Equity returns can be volatile. There are can be period of up-markets
and down markets
• Debt returns are less volatile and stable over long horizon
• A balanced portfolio of debt and equity derives stability from its debt
component and growth opportunities from the equity component
Data as on 30.11.2016 Source: MFI, internal calculation
Past performance may or may not be sustained in the future.
5. Characteristics of Equity & Debt
• Volatility of the debt asset class is relative low in comparison to the
equity asset class across different investment horizons
• Low volatility comes with low returns
• A balanced portfolio of debt and equity can reduce the volatility while
increasing the expected return
Data as on 30.11.2016 Source: MFI, internal calculation
6. This product is suitable for investors who are
seeking*:
Long term investment
Investment in a mix of debt and equity through
stocks of high growth companies and relatively safe
portfolio of debt to provide both long term capital
appreciation and liquidity.
*Investors should consult their financial advisers if in
doubt about whether the product is suitable for them.
INTRODUCING
Riskometer
7. Date of Inception
31/12/1995
Benchmark
Crisil Balanced Fund
Index
Fund Manager
Mr. R. Srinivasan-Equity
Mr. Dinesh Ahuja - Debt
Investment Plans
Direct Plan
&
Regular Plan
Investment Options
Growth
&
Dividend
(Payout, Re-investment &
Transfer Facility)
FUND FEATURES
Investment Objective
To provide investors long term capital appreciation along with the liquidity of an open-ended
scheme by investing in a mix of debt and equity. The scheme will invest in a diversified
portfolio of equities of high growth companies and balance the risk through investing the rest
in a relatively safe portfolio of debt.
Investment Amount
Minimum investments
Rs. 5000 & in multiples of
Re. 1
Additional investments
Rs. 1000 & in multiples of
Re. 1
SIP
Rs. 100 / month – 60 months
Rs. 500 / month – 12 months
Rs. 1000 / month – 6 months
Rs. 1500 / quarter – 4 quarters
SBI Magnum Balanced Fund
8. #Source: CRISIL Fund Analyser
*Portfolio Turnover = lower of total sale or total purchase
for the last 12 months upon Avg. AUM of trailing twelve
months.
Risk Free rate : FBIL OVERNIGHT MIBOR RATE (6.51% as
on 30/Nov/2016). Basis for Ratio Calculation : 3 year
monthly data
QUANTITATIVE ANALYSIS
Standard deviation# 10.52%
Beta# 0.96
Sharpe ratio# 1.15
Portfolio Turnover* 0.19
QUANT DATA OF DEBT PORTION
Yield to Maturity 7.42%
Modified Duration 4.25
Average Maturity 6.50 Years
Fund Philosophy
• Invests in a mix of equity & debt
securities
• Exposure in equity is atleast 50%
and exposure in debt & money
market securities can be upto 50%
• Equity portion is invested in a
diversified portfolio of large & mid
caps
• Debt portion is invested in
investment grade securities with
active duration management
SBI Magnum Balanced Fund
9. SBI Magnum Balanced Fund: Asset allocation
Allocation between equity and debt & money market is stable
Equity and debt & money market allocation
10. In last two years Mid & Small cap indices has outperformed large cap index
In last two years average Mid & Small cap exposure out of total equity exposure was 51.13%.
This was one of the factor for outperformance of the fund in last two years
SBI Magnum Balanced Fund: Active management within Equity asset class
Equity portion into market cap exposureMovement of major indices
For performance please refer slide no. 13. Average has been calculated by taking month end exposure for last 24 months
Data as on 30.11.2016 Source: NSE
11. SBI Magnum Balanced Fund: Active management within Debt asset class
Debt portion is managed dynamically based on interest rate view, inflation & credit risk
In last two years, yields have moved in a trending way
Dynamic allocation between of debt & money market portion into debt & cash has helped fund to
outperform in last two years
Movement of major government securities yields
Debt & money market portion into debt & cash
exposure
Data as on 30.11.2016 Source: Bloomberg
For performance please refer slide no. 13.
12. Portfolio Holdings
STOCK NAME % OF AUM
HDFC BANK LIMITED 6.48
STATE BANK OF INDIA 5.23
KOTAK MAHINDRA BANK LTD 5.10
INFOSYS LIMITED 3.16
SUNDARAM-CLAYTON LTD. 2.67
GRUH FINANCE LIMITED 2.49
AUROBINDO PHARMA LIMITED 2.30
DIVIS LABORATORY LTD. 2.25
SUNDARAM FINANCE LTD 2.21
ECLERX SERVICES LTD 1.82
TOTAL 33.71
Data as on November 30, 2016
13. Performance
Past performance may or may not be sustained in future. Returns (in %) other than since inception are absolute,
calculated for dividend option and in INR are point-to-point (PTP) returns calculated on a standard investment of 10,000/-
. It has been assumed that dividends declared under the scheme have been reinvested at the then prevailing NAV.
Growth option was introduced on 19/01/2005. Additional benchmark as prescribed by SEBI for long-term equity schemes
is used for comparison purposes. NAV of SBI Magnum Balanced Fund – As on 30-Sep-2013 – INR 55.2837; As on 30-Sep-
2014 – INR 83.5216; As on 30-Sep-2015 – INR 94.5893; As on 30-Sep-2016 – INR 105.0945; Source: MFI Explorer.
Data as on 30/09/2016.
30-Sep-15 to
30-Sep-16
30-Sep-14 to
30-Sep-15
30-Sep-13 to
30-Sep-14 Since Inception
Absolute Returns (%)
CAGR Returns
(%)
PTP Returns (INR)
SBI Magnum Balanced Fund –
Growth
11.11 13.25 51.08 16.36 2,40,784
Crisil Balanced Fund Index
(Scheme Benchmark)
9.68 4.38 28.89 N.A. N.A.
S&P BSE Sensex (Additional
Benchmark)
6.54 -1.79 37.41 10.27 77,775
14. Synopsis
A balanced allocation of equity & debt
Backed by a robust investment management process
Endeavour to bring both - Growth from equity and Stability from debt
Active management within each asset class
The equity portion is dynamically managed based on a bottom up approach.
The debt portion switches actively among government debt, corporate debt and money market
instruments based on interest rate view, inflation & credit risk.
15. Performance of Schemes Managed by R. Srinivasan
Since inception NAV has been assumed at Rs 10.
30-Sep-
15 to 30-
Sep-16
30-Sep-
14 to
30-Sep-
15
30-Sep-13
to 30-
Sep-14
Since Inception
Absolute Returns (%)
CAGR
Returns
(%)
PTP
Returns
(INR)
SBI Magnum Equity
Fund
14.09 9.97 44.99 14.93 3,60,298
Nifty 50 Index
(Scheme Benchmark)
8.33 -0.20 38.87 13.65 2,70,012
S&P BSE Sensex
(Additional
Benchmark)
6.54 -1.79 37.41 13.79 2,78,895
Past performance may or may not be sustained in future. Returns
(in %) other than since inception are absolute, calculated for dividend
option and in INR are point-to-point (PTP) returns calculated on a
standard investment of 10,000/-. It is assumed that dividends declared
under the scheme have been reinvested at the then prevailing NAV.
Growth option introduced on 27/11/2006. Additional benchmark as
prescribed by SEBI for equity schemes is used for comparison purposes.
Performance calculated for Regular Plan Performance of dividend plan for
investor would be net of dividend distribution tax as applicable.
Performance calculated for Regular Plan
30-Sep-
15 to 30-
Sep-16
30-Sep-14
to 30-Sep-
15
30-Sep-
13 to 30-
Sep-14
Since Inception
Absolute Returns (%)
CAGR
Returns
(%)
PTP
Returns
(INR)
SBI Magnum
Global Fund
9.71 18.77 77.70 15.28 2,28,870
S&P BSE Midcap
Index (Scheme
Benchmark)
21.92 13.31 70.00 N.A. N.A.
S&P BSE Sensex
(Additional
Benchmark)
6.54 -1.79 37.41 8.88 65,092
Past performance may or may not be sustained in future. Returns
(in %) other than since inception are absolute, calculated for dividend
option and in INR are point-to-point (PTP) returns calculated on a
standard investment of 10,000/-. It is assumed that dividends declared
under the scheme have been reinvested at the then prevailing NAV.
Growth option introduced on 27/06/2005. Additional benchmark as
prescribed by SEBI for long-term equity schemes is used for comparison
purposes. Performance calculated for Regular Plan. Performance of
dividend plan for investor would be net of dividend distribution tax as
applicable.
30-Sep-15 to
30-Sep-16
30-Sep-14 to
30-Sep-15
30-Sep-13 to
30-Sep-14 Since Inception
Absolute Returns (%)
CAGR
Returns
(%)
PTP Returns (INR)
SBI Contra Fund 11.50 9.46 50.79 20.26 2,41,034
S&P BSE 100 Index
(Scheme Benchmark)
9.73 0.77 40.05 13.00 82,419
S&P BSE Sensex
(Additional Benchmark)
6.54 -1.79 37.41 11.43 64,708
Past performance may or may not be sustained in future. Returns (in %) other than since inception are absolute, calculated for dividend option
and in INR are point-to-point (PTP) returns calculated on a standard investment of 10,000/-. It is assumed that dividends declared under the scheme
have been reinvested at the then prevailing NAV. Growth option introduced on 06/05/2005. Additional benchmark as prescribed by SEBI for equity
schemes is used for comparison purposes. Performance of dividend plan for investor would be net of dividend distribution tax as applicable.
Performance calculated for Regular Plan
16. Performance of Schemes Managed by R. Srinivasan
Past performance may or may not be sustained in future. Returns (in %) other than since inception are absolute, calculated for growth
option and in INR are point-to-point (PTP) returns calculated on a standard investment of 10,000/-. Additional benchmark as prescribed by SEBI
for equity schemes is used for comparison purposes. Performance calculated for Regular Plan.
Since inception NAV has been assumed at Rs 10.
30-Sep-15 to 30-
Sep-16
30-Sep-14 to
30-Sep-15
30-Sep-13 to
30-Sep-14 Since Inception
Absolute Returns (%)
CAGR Returns
(%)
PTP Returns (INR)
SBI Small and Midcap Fund – Growth 19.31 29.69 99.07 20.40 37,118
S&P BSE Small Cap Index (Scheme
Benchmark)
15.97 3.18 95.41 8.50 17,792
S&P BSE Sensex (Additional Benchmark) 6.54 -1.79 37.41 8.00 17,219
Past performance may or may not be sustained in future. Returns (in %) other than since inception are absolute, calculated for growth option
and in INR are point-to-point (PTP) returns calculated on a standard investment of 10,000/-. Additional benchmark as prescribed by SEBI for equity
schemes is used for comparison purposes. Performance calculated for Regular Plan
30-Sep-15 to
30-Sep-16
30-Sep-14 to 30-
Sep-15
30-Sep-13 to
30-Sep-14
Since Inception
Absolute Returns (%)
CAGR
Returns
(%)
PTP Returns
(INR)
SBI Emerging Businesses Fund 15.98 10.02 65.20 21.48 1,04,220
S&P BSE 500 Index (Scheme Benchmark) 11.45 3.19 44.92 14.69 52,118
S&P BSE Sensex (Additional Benchmark) 6.54 -1.79 37.41 14.32 50,108
17. Performance of Schemes Managed by R. Srinivasan
Since inception NAV has been assumed at Rs 10.
NAVs of the scheme
Scheme Name 30/09/2016 30/09/2015 30/09/2014 30/09/2013
SBI Emerging Bussinesses Fund - Growth 104.2198 89.8634 81.6823 49.4435
SBI Magnum Equity Fund - Growth 83.5371 73.2232 66.5835 45.9215
SBI Magnum Global Fund 94 - Growth 146.4535 133.4901 112.3929 63.2499
SBI Contra Fund - Growth 95.2542 85.4287 78.049 51.7607
SBI Small & Midcap Fund - Growth 37.1177 31.1101 23.9882 12.05
18. Performance of schemes managed by Dinesh Ahuja
30-Sep-2015
to 30-Sep-2016
30-Sep-2014
to 30-Sep-2015
30-Sep-2013
to 30-Sep-2014
CAGR
Returns (%)
PTP Returns
(INR)
SBI Magnum Gilt Fund -
Short Term - Growth 10.39 12.47 10.06 7.85 32,822
I Sec Si-BEX* (Scheme
Benchmark) 8.74 9.91 8.93 N.A. N.A.
Crisil 1 Year T-Bill Index
(Additional benchmark) 7.36 8.86 8.35 6.3 26,152
Managing since
January, 2011
Since Inception
Absolute Returns (%)
30-Sep-2015
to 30-Sep-2016
30-Sep-2014
to 30-Sep-2015
30-Sep-2013
to 30-Sep-2014
CAGR
Returns (%)
PTP Returns
(INR)
SBI Magnum Gilt Fund -
Long Term - Growth 10.88 17.81 11.6 8.28 35,031
I Sec Li-BEX* (Scheme
Benchmark) 13.8 15.7 12.85 N.A. N.A.
Crisil 10 Year Gilt Index
(Additional benchmark) 11.11 13.76 6.85 N.A. N.A.
Managing since
January, 2011
Since Inception
Absolute Returns (%)
Past performance may or may not be sustained in future. Returns (in %) other than since inception are absolute,
calculated for growth option and in INR are point-to-point (PTP) returns calculated on a standard investment of 10,000/-.
Additional benchmark as prescribed by SEBI for equity schemes is used for comparison purposes. Performance calculated for
Regular Plan
Past performance may or may not be sustained in future. Returns (in %) other than since inception are absolute,
calculated for growth option and in INR are point-to-point (PTP) returns calculated on a standard investment of 10,000/-.
Additional benchmark as prescribed by SEBI for equity schemes is used for comparison purposes. Performance calculated for
Regular Plan
19. Performance of schemes managed by Dinesh Ahuja
Past performance may or may not be sustained in future. Returns (in %) other than since inception are absolute,
calculated for growth option and in INR are point-to-point (PTP) returns calculated on a standard investment of 10,000/-.
Additional benchmark as prescribed by SEBI for equity schemes is used for comparison purposes. Performance calculated for
Regular Plan
Past performance may or may not be sustained in future. Returns (in %) other than since inception are absolute,
calculated for growth option and in INR are point-to-point (PTP) returns calculated on a standard investment of 10,000/-.
Additional benchmark as prescribed by SEBI for equity schemes is used for comparison purposes. Performance calculated for
Regular Plan
30-Sep-2015
to 30-Sep-2016
30-Sep-2014
to 30-Sep-2015
30-Sep-2013
to 30-Sep-2014
CAGR
Returns (%)
PTP Returns
(INR)
SBI Dynamic Bond Fund 10.47 13.41 6.99 5.49 19,653
Crisil Composite Bond
Fund Index (Scheme
Benchmark) 11.51 12.56 11.61 6.75 22,850
Crisil 10 year Gilt Index
(Additional benchmark) 11.11 13.76 6.85 5.68 20,109
Managing since
January, 2011
Since Inception
Absolute Returns (%)
30-Sep-2015
to 30-Sep-2016
30-Sep-2014
to 30-Sep-2015
30-Sep-2013
to 30-Sep-2014
CAGR
Returns (%)
PTP Returns
(INR)
SBI Magnum Income
Fund 9.64 12.53 7.35 7.79 38,194
Crisil Composite Bond
Fund Index (Scheme
Benchmark) 11.51 12.56 11.61 N.A. N.A.
Crisil 10 year Gilt Index
(Additional benchmark) 11.11 13.76 6.85 N.A. N.A.
Managing since
January, 2011
Since Inception
Absolute Returns (%)
20. Performance of schemes managed by Mr. Dinesh Ahuja
Since inception NAV has been assumed at Rs 10.
NAVs of the scheme
Performance of other schemes managed by Mr. R. Srinivasan and Mr. Dinesh Ahuja are given as required under the SEBI
regulations.
30-Sep-2015
to 30-Sep-2016
30-Sep-2014
to 30-Sep-2015
30-Sep-2013
to 30-Sep-2014
CAGR
Returns (%)
PTP Returns
(INR)
SBI Corporate Bond
Fund - Reg - Growth 10.11 11.49 N.A. 10.68 12,512
Scheme Benchmark: -
Crisil Composite Bond
Fund Index 11.51 12.56 N.A. 11.89 12,815
Additional Benchmark: -
Crisil 10 Yr Gilt Index 11.11 13.76 N.A. 12.12 12,873
Managing since
Jul 2014
Since Inception
Absolute Returns (%)
Past performance may or may not be sustained in future. Returns (in %) other than since inception are absolute,
calculated for growth option and in INR are point-to-point (PTP) returns calculated on a standard investment of 10,000/-.
Additional benchmark as prescribed by SEBI for equity schemes is used for comparison purposes. Performance calculated for
Regular Plan
Scheme Name 30-09-2013 30-09-2014 30-09-2015 30-09-2016
SBI Corporate Bond Fund - Growth 18.6715 20.5106 22.8665 25.1782
SBI Dynamic Bond Fund - Growth 14.6598 15.6841 17.7881 19.6505
SBI Magnum Gilt LTP - Growth 24.0315 26.8181 31.5945 35.0333
SBI Magnum Gilt STP - Growth 24.1132 26.5396 29.8504 32.9529
SBI Magnum Income Fund - Growth 29.008 31.1412 35.0417 38.4189
21. • Mr. Navneet Munot - Chief Investment Officer
Mr. Navneet Munot joined SBI Funds Management Pvt. Ltd. as Chief Investment Officer in Dec. 2008.
Prior to SBIFM he was the Head of Multi Strategies fund at Morgan Stanley Investment Management
before which he worked as the Chief Investment Officer (Fixed Income and Hybrid Funds) of Birla Sun
Life Asset Management Company Ltd. Navneet has been associated with the financial services business
of the Birla group for over 13 years and worked in various areas such as fixed income, equities and
foreign exchange. His articles on matters related to financial markets have widely been published.
Navneet holds a Masters in Commerce and is also a rank holder Chartered Accountant. He is a charter
holder of Chartered Financial Analyst Institute, US and Chartered Alternative Analyst Institute, US. He
has also done Financial Risk Management, FRM from Global Association of Risk Professionals (GARP).
• Mr. R. Srinivasan – Fund Manager Equity portion
Mr. Srinivasan joined SBI Funds Management as a Senior Fund Manager in May 2009, now heads
equities and also directly manages a few funds. He has an experience of over 20 years in capital
markets having worked with FCH, Principal PNB, Oppenheimer & Co, Indosuez WI Carr and Motilal
Oswal, among others. Srinivasan is a post graduate in commerce and has done his MFM from the
University of Bombay.
Mr. Dinesh Ahuja - Fund Manager Debt portion
Dinesh joined SBI Funds Management Pvt. Ltd. as a fixed income portfolio manager in 2010. Prior to
joining SBI Funds Management Pvt. Ltd. Dinesh was a portfolio manager at L&T Asset Management and
Reliance Group for four years. Dinesh started his career in 1998 as a fixed income dealer on the sell
side. Thereafter he worked in leading broking outfits for eight years before moving on the buy side in
2006. Dinesh is a commerce graduate and has completed his Masters in Management Studies from
Mumbai University
Biographies
22. 22
63% 37%
India’s premier and largest bank with over
200 years experience (Estd: 1806)
Asset base of USD 423 bn*
Pan-India network of ~23,010 branches and
56,930 ATM’s as at end of September 2015
Servicing over 290 million customers
Only Indian bank in Fortune 500 list; ranked
among the top 100 banks in the world
Global leader in asset management
Backed by Credit Agricole and listed in Euronext Paris
More than 2,000 institutional clients and distributors
in 30 countries
Over 100 million retail clients via its partner
networks
€985 bn AuM as at end of December 2015
SBI Funds Management Private Limited
*Source: SBI Analyst Presentation as on end September 2015. USD 1 = INR 65.74
# Source : Amundi website as on end December 2015
23. SBI FM: Strengths Transforms To Experience
Established in 1987: A leading asset manager in India
Broad
Investor
Base
AUM
INR 1,31,554
Cr
Wide
Distribution
Network
Experienced
Investment
Team
Extensive
Product
Range
INR 1,31,554 Crores* AAUM in mutual funds
Asset management across mutual funds,
segregated managed accounts, domestic
advisory & offshore advisory business
Multiple asset classes ranging from equities
and debt, money market to ETFs and
structured funds
Investment team of 32 professionals with
strong track record
Broad customer base with over 40 lakh folios
of individual, corporate and institutional
investors
* Quarterly average September, 2016
24. Disclaimer
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
This presentation is for information purposes only and is not an offer to sell or a solicitation to buy any mutual fund
units/securities. These views alone are not sufficient and should not be used for the development or implementation of
an investment strategy. It should not be construed as investment advice to any party. All opinions and estimates
included here constitute our view as of this date and are subject to change without notice. Neither SBI Funds
Management Private Limited, nor any person connected with it, accepts any liability arising from the use of this
information. The recipient of this material should rely on their investigations and take their own professional advice