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sbi_dividend_yield_fund-ppt.pdf
UNDERSTANDING
DIVIDEND YIELD
DIVIDEND YIELD
“Dividend yield showshow much
a company paysoutin dividends
each year relative to its stock
price”
Annual
dividends paid
per share
Price per
share
DividendYield
Interim Dividend per share
Final Dividend per share
INR 5
INR 25
Total Dividend per share INR 30
Current Market Price per share INR 600
Dividend Yield
5.0%
Dividend Yield Formula Example
(Per share)
Relatively more
matured businesses
with an ability to
generate healthy free
cashflows
Relatively less prone to
downside risk in falling
market coupled with
capital appreciation
prospects in a reviving
market
Reflects optimum
usage of free
cashflows, good
operational health &
sustainability of future
earnings
Consistent dividend
payouts & growth or
a possibility of likely
growth in dividend
payouts
KEY ATTRIBUTES OF DIVIDEND YIELD COMPANIES
+
OUR PERSPECTIVE
Reinvests profits in the
business
Holds on to
the earnings
for future
needs
Distributes part of the profits
toshareholders by way of
dividends
Cash Dividends
Share Repurchase/
Buyback Shareholder’s yield
Profitable
company
+
DIVIDEND YIELD –
AN IDEAL CHOICE IN YOUR
INVESTMENT PORTFOLIO MIX
-58.8%
-22.2%
-23.9%
-13.1%
-32.8%
-61.1%
-26.4%
-20.6%
-14.9%
-37.9%
-72.9%
-32.3%
-18.4%
-24.4%
-38.5%
-75.6%
-36.3%
-23.3%
-42.0%
-43.5%
NIFTY Dividend Opportunities 50 TRI NIFTY 100 TRI NIFTY Midcap 150 TRI NIFTY SmallCap 250 TRI
DIVIDEND YIELD COMPANIES– LIMITING DOWNSIDE
-58.8%
-61.1%
-72.9%
-75.6%
-22.2%
-26.4%
-32.3%
-36.3%
-23.9%
-20.6%
-18.4%
-23.3%
-13.1%
-14.9%
-24.4%
-42.0%
-32.8%
-37.9%
-38.5%
-43.5%
Start Date
End Date
01/01/2008
31/12/2010
01/01/2011
31/12/2013
01/01/2014
31/12/2016
01/01/2017
31/12/2019
01/01/2020
30/12/2022
Maximum
Drawdown
High Dividend Yield companies limits downside risk & thus better placed to weather economic downturns
NIFTY 100 TRI
NIFTY Midcap 150 TRI
NIFTY SmallCap 250 TRI
NIFTY Dividend Opportunities 50 TRI
Source: NSE & Internal research. Data as on Dec 30, 2022. A maximum drawdown (MDD) is the maximum observed loss from a peak to a trough of a portfolio, before a new peak
is attained.Maximum drawdown is an indicator of downsiderisk over a specified time period. Pastperformance may or may not be sustained in future. TRI – Total Return Index
-35.5
50.4
-0.7
29.4
-20.2
24.6
9.5
-29.1
28.9
-39.0
55.5
-2.5
33.2
-18.4
29.9
3.6
-28.9
32.2
-33.8
74.0
3.8
20.1
-19.8
30.6
1.4
-22.5
33.7
-60
-40
-20
0
20
40
60
80
Sub Prime Crisis
(Apr '08 - Mar 09')
Recovery post Sub
prime crisis (Apr '09
- Dec '10)
European Crisis
(Jan'11 - June'13)
Post European
Crisis (Jul'13 -
Feb'15)
China Slowdown
(Mar'15 - Feb'16)
Global liquidity and
domestic reforms
(Mar'16 - Dec'17)
Global trade war
concerns (Jan'18 -
Dec'19)
Before Corona Virus
Pandemic (Dec'19 -
Mar'20)
Post Pandemic
Recovery (Mar'20 -
Dec'21)
Nifty 50 TRI Nifty 500 TRI Nifty Dividend Opportunities 50 TRI
Duringmajormarketfalls,highdividend yieldstocksprovides cushionagainstmarketvolatility
thus bringing stability to your investmentportfolioin comparisonto broader markets
DIVIDEND YIELD COMPANIES– CAN PLAY OUT UNCERTAINTIES WELL
Note: MFI Explorer & Internal Research.Pastperformance may or may not be sustained in future.
In
%
10.81%
12.18%
NIFTY SmallCap 250 NIFTY SmallCap 250 TRI
Contribution of Dividends to the Total return (Period Jan 2006 – Jan 2023)
12.72%
14.12%
NIFTY Midcap 150 NIFTY Midcap 150 TRI
[INR 946]
11.08%
12.51%
Nifty 100 NIFTY 100 TRI
10.86%
12.18%
NIFTY 500 NIFTY 500 TRI
1.33% 1.42%
1.40%
1.37%
[INR 578]
[INR 707]
[INR 598]
[INR 767]
[INR 573]
[INR 706]
[INR 742]
Value of INR 100 invested Value of INR 100 invested Value of INR 100 invested Value of INR 100 invested
1.33%
1.42%
1.40%
1.37%
Total Return = Capital Gains + Dividends
Dividendspayouts fromtheconstituentstocks forming partof the index contributedmeaningfully
in theindexperformance across marketcap.Hence, dividendsare an importantsource of TotalReturn
Source: NSE & Internal research.Data as on Jan 31, 2023. Period of Returns computed from 31/01/2006 to 31/01/2023.TRI – Total Return Index. Pastperformance may or may
not be sustained in future.
COMPOUNDINGEFFECT OF DIVIDEND INCOMEOVER TIME
Broader Index Large Cap Index MidCap Index Small Cap Index
0
1
2
3
4
5
6
7
Jan-08
Jan-09
Jan-10
Jan-11
Jan-12
Jan-13
Jan-14
Jan-15
Jan-16
Jan-17
Jan-18
Jan-19
Jan-20
Jan-21
Jan-22
Jan-23
0
10
20
30
40
50
Jan-08
Jan-09
Jan-10
Jan-11
Jan-12
Jan-13
Jan-14
Jan-15
Jan-16
Jan-17
Jan-18
Jan-19
Jan-20
Jan-21
Jan-22
Jan-23
ATTRACTIVE VALUATIONS + HIGHER DIVIDEND YIELD
Price to Earnings Dividend Yield (%)
Source:NSE & Internal research. Data as onJan 31, 2023. Period ofReturns computed from 1/01/2008 to 31/01/2023. TRI – Total Return Index. Past performance mayor maynot be sustainedinfuture
HighDividendYield Companiesare generallywellplacedin termsof valuation coupledwith strongfundamentals
thatmayoffer a compellinginvestmentopportunity
Long Term Average(Jan2008 –Jan 2023) P/E
Nifty Dividend Opportunities 50 TRI 13.8
Nifty 500 TRI 23.6
Nifty 50 TRI 22.6
Long Term Average(Jan2008 –Jan 2023) DividendYield(%)
Nifty Dividend Opportunities 50 TRI 3.0
Nifty 500 TRI 1.3
Nifty 50 TRI 1.3
Nifty Dividend Opportunities 50 TRI Nifty 500 TRI Nifty 50 TRI Nifty Div Opportunities 50 TRI Nifty 500 TRI Nifty 50 TRI
HIGH DIVIDEND YIELD COMPANIESV/S BROADERMARKET
Withthe rightmix of stocks, dividendscan provide cumulativegrowth astheearningscanbe reinvested backinto the portfolio or
be used to buyadditionaldividend-payingshares—asustainablewayof investingthatbecomeseven morefavorable
0
100000
200000
300000
400000
500000
600000
700000
Jan-08
Oct-08
Jul-09
Apr-10
Jan-11
Oct-11
Jul-12
Apr-13
Jan-14
Oct-14
Jul-15
Apr-16
Jan-17
Oct-17
Jul-18
Apr-19
Jan-20
Oct-20
Jul-21
Apr-22
Jan-23
Value of INR 1 lakh invested
High DividendYield Companies
Broader market
INR 5.74 lakhs
INR 4.20 lakhs
Source: NSE & MFI Explorer. Past performance may or may not be sustained in future. Data as on Jan 31, 2023. Date of Investment is considered from Jan 01, 2008 as date of
investment i.e. the date when Nifty Dividend Opportunities 50 TRI values areavailable.
NiftyDividendOpportunities50TRI
Nifty500 TRI
Optimum cashflows
Increased focus of largeinvestor
community towards companies
with stable & optimum free
cashflows
Dividends are considered to be a
common objective of investor
fraternity & Corporate
managements
Common Objective
Stability + Growth Corporate Governance
Dividends reflect sustainable
future performance& long-term
growth visibility
Propensity to pay dividends is
well aligned with Improving
corporategovernance
CONSISTENCYOF DIVIDENDS – THE LARGER PICTURE
DIVIDENDS – COMMONBELIEF VIS-À-VIS OUR VIEW
Dividendcompanies are sector agnostic &reflect
optimum cashflowmanagement
Dividendcompanies withstable cashflowsalsohave
the potential for long-termgrowthcompounding
Strategic/tactical opportunities amongst consistent
dividendpaying companies that may exist across the
market cap spectrumat different point intime
Dividendyieldcompanies withapotential togrow
dividends over time canbe growthorientedcoupled
withan ability to returncashtoshareholders
Common belief… Our view…
Dividend + Growth
Dividend areattributed to sector specific gigantic
companies with cash surplus
Dividend arereflective of companies with negligible
growth prospects to deploy excess cash
Dividends represents only large cap oriented stocks
Dividend Investing IsEquivalentto Value Investing
Dividends
[An open-ended equity scheme investing predominantly in dividend yielding stocks]
Presenting
SBI DIVIDEND YIELD FUND
0% - 35%*
65% - 100%*
▪ The overall endeavour is to constructa
portfolio with aggregate dividend yield
that is at least 50% higher than that of
the Nifty 50 Index.
▪ Endeavour to investpredominantly in a well-
diversified portfolio of equity and equity
related instruments of dividend yielding
companies
▪ The Scheme will consider dividend yielding
stocks which havepaid dividend/buyback in at
least 1 of the 3 preceding FY
▪ Other stocks in the universe
▪ Investin Debt & money market
securities
▪ Units of REITS & InvITs
▪ Overseas Securities
BROADPORTFOLIOCONSTRUCT
*The above image is for representation purpose only. Portfolio will be managed as per the stated Investment Objective & Strategy as detailed in SID. For detailed asset allocation
& Investment Strategy, pleaserefer Scheme Information Document.
CURRENT PORTFOLIOAPPROACH
Diversified allocation across market
capitalization
Style Agnostic as it may be the
outcome of stock selection
No sector bias, sector allocation
resultant of bottom up stock picking
Businesses with attractive dividend yields +
Companies with potential growth in
dividends
Tactical investment opportunities in
domestic and overseas markets
Aim to achieve aggregate dividend
yield that is at least 50% higher
than that of the Nifty 50 Index
DIVIDEND
YIELD
PORTFOLIO
The portfolio of the scheme is subject to changes within the provisions of the Scheme Information document of the Scheme. For detailed asset allocation and other scheme
features, pleaserefer to the Scheme Information Document (SID).
APPROACH1: HIGH DIVIDEND YIELD
Source: Bloomberg & Company Annual Reports. The above is for illustration purposes only to givean idea about the investment philosophy..The fund manager will takeappropriate
call atthe time of construction of the portfolio.Itshould not be considered as investment advicein any aspect. Pastperformance may or may not be sustained in future
Illustration: Companies with attractive dividend yields
• As the business matured, the company increased dividend payoutsfrom FY19 onwards.
• With higher dividends, it becamea classic utility stock which investorsbuy mainly for dividend yields.
• Greater visibility of dividends and capital allocation aided stock performance.
• Additionalkicker came from monetization of assetsvia INVIT.
0.00
2.25
4.50
6.75
9.00
0
400
800
1,200
1,600
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
Power Transmission Mkt Cap (INR B) Power Transmission Div Yield (%) Nifty Index Div Yield (%)
Power Transmissioncompany withattractive dividendyield FY
Market Cap
(INR in Billion)
Dividend payouts
(INR in Billion)
2010 451 6.3
2011 472 8.1
2012 501 9.8
2013 490 12.7
2014 549 13.5
2015 760 10.5
2016 728 12.1
2017 1,032 22.8
2018 1,011 27.5
2019 1,035 43.6
2020 832 52.3
2021 1,128 62.8
2022 1,512 102.9
APPROACH2: DIVIDEND GROWTH
Source: Bloomberg & Company Annual Reports. The above is for illustration purposes only to givean idea about the investment philosophy..The fund manager will takeappropriate
call atthe time of construction of the portfolio.Itshould not be considered as investment advicein any aspect. Pastperformance may or may not be sustained in future
Illustration : Potential Growth In Dividends
IT Company paying Consistent Dividend&poisedfor growth
in dividends per share
FY
Market Cap
(INR in Billion)
Dividend payouts
(INR in Billion)
2010 1,528 39.1
2011 2,317 27.4
2012 2,288 48.9
2013 3,084 43.1
2014 4,178 62.7
2015 5,002 154.7
2016 4,966 85.7
2017 4,792 92.6
2018 5,454 255.5
2019 7,511 272.5
2020 6,852 273.8
2021 11,755 337.9
2022 13,685 379.3
0
2
3
5
6
0
4,000
8,000
12,000
16,000
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
IT Stock Market Cap (INR B) IT Stock Div Yield (%) Nifty Index Div Yield (%)
• Strong track record of dividend payoutand dividend growth backed by consistently growing revenuesand earnings, cash flow generation and healthy
dividend payoutratios.
• Company hasdone buybacksover and above dividends, enhancing shareholder’syield further and aiding EPS growth.
• Dividends (including buybacks) have grownatCAGRof >12% over 5 yearsand 10 yearsending March 2022.
• Stock hasbeen a strong compounder over the long term.
HOW CAN YOU GET
REGULAR TAX EFFICIENT
CASH FLOWS?
SWP (A) FOR REGULAR CASH FLOW REQUIREMENTS (1/2)
We talked about Investments, but what about the Withdrawal plan?
Need
How does it work
Make an investment Analyzeyour cash
flow requirement
Opt for SWP (A) in growth or
IDCW option for the desired
amount & frequency
The remaining corpus will
continue to earn returns
We make investments to plan fora better future.But all of us havethe need for regular cash flow.
Systematic Withdrawal Plan (SWP) is a ready-made tool to get regular cash flows in a very simple and tax-efficient manner.
Under SWP (A) facility, investors will have the option to withdraw fixed % of the cost of investment or any specifiedamount to meet their regular cashflow needs at various frequencies.
Multiple options
Confidence
SWPs providethe confidenceof getting a fixed amount
at a pre-determined frequency.
Wealth Creation
Long term wealth creation opportunity along with
regular and steady cash flow.
Tax efficient
Tax efficient option as compared to traditional withdrawal
plans (Dividend, MIP etc).
Indexation
Indexation benefit on LTCG for non-equity fund.
Flexibility
Allows the investor to change the withdrawalamount
and frequency of withdrawalof any time.
Smooth & transparent process
The entire process is hassle-freeand transparent.
Multiple options
Benefits
SWP (A) FOR REGULAR CASH FLOW REQUIREMENTS (2/2)
Applicable months for different frequency:Monthly – All months;Quarterly- December, March, June, September;Halfyearly – March & September;Yearly– March;Anyamount – Applicable months
as per chosen frequency
(Half Yearly)
3%
Any amount > Rs. 500
( Monthly /Quarterly /Half Yearly /
Yearly)
(Yearly)
6%
(Monthly)
0.5%
(Quarterly)
1.5%
TAX EFFICIENCY OF SWP (A) SCORESOVER DIVIDENDS
Investors looking for
regular cashflow
Invest in Direct stocks of
high dividend yield
company
Invest in Dividend
Yield Fund
Dividend Taxation^
30%* + Surcharge @ 10% or
15% + Cess @ 4% = 34.32% or
35.88%
IDCW payouts from
scheme
Creating Cashflows using
SWP (A)
Dividend Taxation^
30%* + Surcharge @ 10% or
15% + Cess @ 4% = 34.32% or
35.88%
Capital Gain Taxation^
STCG : 15% + Surcharge @ 10% or 15% +
Cess @ 4% = 17.16% or 17.94%
LTCG: 10% (Without Indexation)# +
Surcharge @ 10% or 15% + Cess @ 4% =
11.44% or 11.96%
*Assuming Investor falls in the highest tax bracket.
# LTCG upto Rs 1 lakh is exempt from tax.
Surcharge to be leviedat:• 37% on base tax where specifiedincome exceeds Rs. 5 crore;• 25% where specifiedincome exceeds Rs. 2 crore but does not exceed Rs. 5 crore;• 15% where total
income exceeds Rs. 1 crore but does not exceed Rs. 2 crore;and • 10% where total income exceeds Rs. 50 lakhs but does not exceedRs. 1 crore. ^Enhanced surcharge of 25% and37% will not apply
in case of income bywayof dividendorcapitalgains on securities covered u/s. 111A &112A. Specifiedincome – Total income excludingincome bywayof dividend orincome underthe provisions of
section111A and 112A of the Act. IDCW-Income Distributioncum Withdrawal
ILLUSTRATION: TAX EFFICIENCY
Illustration:Assume aninvestor invests INR 10 lakhs inSBI Dividend YieldFund& Direct Stocks
Alternatives available with an investor for regular cashflows
1) Choosefor SWP(A) option fromthe SBI Dividend Yield Fund @ 6% p.a of the costof investment
2) Chase expected dividends fromthe portfolio of stocks @ 6% p.a dividend yield
Withthe use of SWP(A) featurein the SBI Dividend YieldFund,an investorcan have tax efficienthighercashflows relative to
dividendsfrom directstocks
The above table is only for illustration purpose and shall not be construed as tax advice or investment advice in any manner. Exit Load if any has not been assumed in the computation. Investors are hereby
advised to consulta Financial Advisor ora TaxConsultant before making investment decisions. Dividends are taxed at 30%.(assuming income falls in the highest slab), short term capital gains at 15%, and long
term capital gains at 10%. Tax rate further includes Surcharge at 15% and Cess @4%. Rate of return for SBI Dividend Yield fund is assumed to be 10% p.a. Returns assumption is strictly forillustrative purpose
onlyanddoes not indicate anyreturn guarantee.
Years
SWP(A)
Tax
Net
cashflows
Dividends
Tax
Net
cashflows
@ 6% cost
of investment
@ 6% yield
Year 1 60,000 652 59,348 60,000 21,528 38,472
Year 2 60,000 1,245 58,755 60,000 21,528 38,472
Year 3 60,000 1,785 58,215 60,000 21,528 38,472
Year 4 60,000 2,275 57,725 60,000 21,528 38,472
Year 5 60,000 2,720 57,280 60,000 21,528 38,472
Total 300,000 8,677 291,323 300,000 107,640 192,360
Alternative 1 : SWP(A) Alternative 2 : Dividends
Tax Outflowas a %
of Cashflows 2.89% 35.88%
INVESTMENT PROCESS &
FRAMEWORK
OUR INVESTMENT ETHOS
BOTTOM UP
RESEARCH
ESG + FORENSIC
QUANTITATIVE
MODELS
MULTI FACTOR
MODEL
INVESTMENT
UNIVERSE
MACRO +ASSET
ALLOCATION
As The CoreOf Our Investment Process, Each Stock In Our InvestibleUniverse Goes Through A RigorousMulti Step Analysis
Portfolio will bemanaged as per the stated Investment Objective, Investment Strategy etc. as detailed in SID.For details, pleaserefer Scheme Information Document available
on https://www.sbimf.com/.
▪ ~ 350 stocks
considered for
screening by sector
Analysts
▪ Active Screening &
Monitoring
▪ Detailed Analyst
Reports
▪ Set a Target Price for
each stock in the
Coverage
▪ Analyst Rating
Sectors:
▪ Tobacco
▪ Controversial weapons
▪ Alcohol
▪ Gambling
▪ Adult entertainment
Controversies:
▪ High/Severe impact on
society, environment
and risks to the long-
term sustainability of
the business
External:
▪ Ratings from global
reputed ESG ratings
firm/s
Internal:
▪ Build SBIFM
capabilities
▪ Leverage Amundi
expertise
Fundamentals:
▪ Return on capital
▪ Skin in the game
▪ Earnings growth
▪ Track Record
▪ Competitive advantage
▪ Quality of
Management
▪ Longevity / scale of
opportunity
▪ Relative Valuations
INVESTMENT
UNIVERSE
INTERNAL
COVERAGE
EXCLUSIONS
SECTOR +
CONTROVERSY
ESG RATING/
SCORINGS
EXTERNAL +
INTERNAL
PORTFOLIO
CONSTRUCTION
FUNDAMENTALS
ESG INVESTMENTPROCESS
ESG PortfolioConstruction
FORENSIC ACCOUNTINGFRAMEWORK
Objective: Are published accounts a true reflection of actual business performance?
Process: Listed companies graded into quartiles
Profit &
Loss checks
Balance Sheet
checks
Cash flow
checks
Relatedparty
checks
Audit quality
checks
Aggressive accounting of
P&L items.
Is Balance sheet
misstated?
Are cashflows consistent
with other statements like
P&L and Balance Sheet?
Extent of related party
transactions on P&L and
Balance Sheet
Quality of Auditor and
Audit process
Purpose
Revenue recognition,
expense recognition, non-
core profit recognition etc
Cash balance misstatement,
off-balance sheet risk,
working capital position etc
Gold plating on capital
expenditure, cashflow vs
corresponding P&L entries
etc
Loans and advances,
receivables, sales and
purchases
Audit independence, audit
qualifications, quality of
auditor etc
Examples
▪ Monthly Quant-Q
score Model
▪ Screeners
▪ In-house Research
▪ Channel Checks
▪ Sell-side Research
▪ Competitors
▪ Customers
▪ Suppliers
▪ Management
▪ Earnings Model
▪ Value Framework
▪ Moats
▪ Cross Pollination
▪ Rationale
▪ Target Price
▪ Recommendations
▪ Checklist
▪ Best Ideas
▪ Risks
▪ Template
▪ Buy / Sell Decisions
▪ Risk Management
▪ Portfolio Sizing
▪ Analyst Portfolios
▪ Market Intelligence
▪ Price Volumes /
Trade offs
▪ Technicals
▪ Update
▪ Review the
recommendations
▪ Reinforce in
meetings
▪ Peer Review
Idea
Generation
Scuttlebutt Analysis
Investment
Thesis
Portfolio
Construct
Execution Monitoring
ROBUST7-LAYERED INVESTMENTPROCESS
Portfolio will be managed as per the stated Investment Objective & Strategy as detailed in SID. For detailed Investment Strategy, please refer Scheme Information Document of the
respective schemes
PRODUCT SUITABILITY &
5 REASONS WHY…
SUITABLE FOR…
Investor looking for
potential long term wealth
Creation (>4 years),
wanting to have exposure to
relatively strong businesses
Direct equity investors
Investor seeking a diversified
portfolio with investments in
high dividend yielding stocks
based on research expertise
Millennials& Firsttime
Investors
Tax Efficiency in
cashflows
One stop solution that offers
tax efficient SWP facility to
meet regular cashflows unlike
dividends from individual
stocks
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.
Unconstrained, sector & market cap
agnostic approach
Active Stock Management with
Bottom- up strategy
Strong pedigree of Investment Expertise
across market cap
Well researched Consistent high dividend
yield / potential growth in dividends
Style Agnostic with broader opportunity set
for stock selection
5 REASONS WHY SBI DIVIDEND YIELD FUND
FUND FACTS
For details, please refer to the Scheme Information Document (SID). &
Mr. Mohit Jain is the dedicated fund manager for overseas securities. ^Additional Purchase:Rs. 1000 and in multiples of Re.1
thereafter. *For detailed minimumamount of SIP acrossfrequencies& number ofinstallments, please refer to SID/KIM.
Name
SBI DividendYield
Fund
An open ended equity scheme
investing predominantly in
dividend yielding stocks.
Category
Dividend Yield
Fund Manager&
Mr. Rohit Shimpi
First Tier
Benchmark Index
NIFTY 500 TRI
Minimum
Application^
Rs. 5000/- andin
multiples of Re. 1
thereafter
Minimum
Monthly SIP*
MinimumRs 500 & in
multiples of Re. 1
Exit Load
• NIL - If units purchased or switched in
from another scheme of the Fund are
redeemed or 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
Trusted by over 10 million Investors
Managing assets for over 35 years
Signatory of UNPRI & CFA Asset Manager
Code of Conduct
Servicing investors across ~99% pin codes
of the country.
Investment team of ~65 members with an
average experience of 15 years of the country
An array of digital tools for ease of
transaction
WHY SBIFML
DISCLAIMER
This presentation is for information purposes only and is not an offer to sell or a solicitation to buy any mutual fund
units/securities. The views expressed herein are based on the basis of internal data, publicly available information & other
sources believed to be reliable. Any calculations made are approximations meant as guidelines only, which need to be
confirmed before relying on them. 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 Limited, SBI Mutual Fund 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.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

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sbi_dividend_yield_fund-ppt.pdf

  • 3. DIVIDEND YIELD “Dividend yield showshow much a company paysoutin dividends each year relative to its stock price” Annual dividends paid per share Price per share DividendYield Interim Dividend per share Final Dividend per share INR 5 INR 25 Total Dividend per share INR 30 Current Market Price per share INR 600 Dividend Yield 5.0% Dividend Yield Formula Example (Per share)
  • 4. Relatively more matured businesses with an ability to generate healthy free cashflows Relatively less prone to downside risk in falling market coupled with capital appreciation prospects in a reviving market Reflects optimum usage of free cashflows, good operational health & sustainability of future earnings Consistent dividend payouts & growth or a possibility of likely growth in dividend payouts KEY ATTRIBUTES OF DIVIDEND YIELD COMPANIES
  • 5. + OUR PERSPECTIVE Reinvests profits in the business Holds on to the earnings for future needs Distributes part of the profits toshareholders by way of dividends Cash Dividends Share Repurchase/ Buyback Shareholder’s yield Profitable company +
  • 6. DIVIDEND YIELD – AN IDEAL CHOICE IN YOUR INVESTMENT PORTFOLIO MIX
  • 7. -58.8% -22.2% -23.9% -13.1% -32.8% -61.1% -26.4% -20.6% -14.9% -37.9% -72.9% -32.3% -18.4% -24.4% -38.5% -75.6% -36.3% -23.3% -42.0% -43.5% NIFTY Dividend Opportunities 50 TRI NIFTY 100 TRI NIFTY Midcap 150 TRI NIFTY SmallCap 250 TRI DIVIDEND YIELD COMPANIES– LIMITING DOWNSIDE -58.8% -61.1% -72.9% -75.6% -22.2% -26.4% -32.3% -36.3% -23.9% -20.6% -18.4% -23.3% -13.1% -14.9% -24.4% -42.0% -32.8% -37.9% -38.5% -43.5% Start Date End Date 01/01/2008 31/12/2010 01/01/2011 31/12/2013 01/01/2014 31/12/2016 01/01/2017 31/12/2019 01/01/2020 30/12/2022 Maximum Drawdown High Dividend Yield companies limits downside risk & thus better placed to weather economic downturns NIFTY 100 TRI NIFTY Midcap 150 TRI NIFTY SmallCap 250 TRI NIFTY Dividend Opportunities 50 TRI Source: NSE & Internal research. Data as on Dec 30, 2022. A maximum drawdown (MDD) is the maximum observed loss from a peak to a trough of a portfolio, before a new peak is attained.Maximum drawdown is an indicator of downsiderisk over a specified time period. Pastperformance may or may not be sustained in future. TRI – Total Return Index
  • 8. -35.5 50.4 -0.7 29.4 -20.2 24.6 9.5 -29.1 28.9 -39.0 55.5 -2.5 33.2 -18.4 29.9 3.6 -28.9 32.2 -33.8 74.0 3.8 20.1 -19.8 30.6 1.4 -22.5 33.7 -60 -40 -20 0 20 40 60 80 Sub Prime Crisis (Apr '08 - Mar 09') Recovery post Sub prime crisis (Apr '09 - Dec '10) European Crisis (Jan'11 - June'13) Post European Crisis (Jul'13 - Feb'15) China Slowdown (Mar'15 - Feb'16) Global liquidity and domestic reforms (Mar'16 - Dec'17) Global trade war concerns (Jan'18 - Dec'19) Before Corona Virus Pandemic (Dec'19 - Mar'20) Post Pandemic Recovery (Mar'20 - Dec'21) Nifty 50 TRI Nifty 500 TRI Nifty Dividend Opportunities 50 TRI Duringmajormarketfalls,highdividend yieldstocksprovides cushionagainstmarketvolatility thus bringing stability to your investmentportfolioin comparisonto broader markets DIVIDEND YIELD COMPANIES– CAN PLAY OUT UNCERTAINTIES WELL Note: MFI Explorer & Internal Research.Pastperformance may or may not be sustained in future. In %
  • 9. 10.81% 12.18% NIFTY SmallCap 250 NIFTY SmallCap 250 TRI Contribution of Dividends to the Total return (Period Jan 2006 – Jan 2023) 12.72% 14.12% NIFTY Midcap 150 NIFTY Midcap 150 TRI [INR 946] 11.08% 12.51% Nifty 100 NIFTY 100 TRI 10.86% 12.18% NIFTY 500 NIFTY 500 TRI 1.33% 1.42% 1.40% 1.37% [INR 578] [INR 707] [INR 598] [INR 767] [INR 573] [INR 706] [INR 742] Value of INR 100 invested Value of INR 100 invested Value of INR 100 invested Value of INR 100 invested 1.33% 1.42% 1.40% 1.37% Total Return = Capital Gains + Dividends Dividendspayouts fromtheconstituentstocks forming partof the index contributedmeaningfully in theindexperformance across marketcap.Hence, dividendsare an importantsource of TotalReturn Source: NSE & Internal research.Data as on Jan 31, 2023. Period of Returns computed from 31/01/2006 to 31/01/2023.TRI – Total Return Index. Pastperformance may or may not be sustained in future. COMPOUNDINGEFFECT OF DIVIDEND INCOMEOVER TIME Broader Index Large Cap Index MidCap Index Small Cap Index
  • 10. 0 1 2 3 4 5 6 7 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20 Jan-21 Jan-22 Jan-23 0 10 20 30 40 50 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20 Jan-21 Jan-22 Jan-23 ATTRACTIVE VALUATIONS + HIGHER DIVIDEND YIELD Price to Earnings Dividend Yield (%) Source:NSE & Internal research. Data as onJan 31, 2023. Period ofReturns computed from 1/01/2008 to 31/01/2023. TRI – Total Return Index. Past performance mayor maynot be sustainedinfuture HighDividendYield Companiesare generallywellplacedin termsof valuation coupledwith strongfundamentals thatmayoffer a compellinginvestmentopportunity Long Term Average(Jan2008 –Jan 2023) P/E Nifty Dividend Opportunities 50 TRI 13.8 Nifty 500 TRI 23.6 Nifty 50 TRI 22.6 Long Term Average(Jan2008 –Jan 2023) DividendYield(%) Nifty Dividend Opportunities 50 TRI 3.0 Nifty 500 TRI 1.3 Nifty 50 TRI 1.3 Nifty Dividend Opportunities 50 TRI Nifty 500 TRI Nifty 50 TRI Nifty Div Opportunities 50 TRI Nifty 500 TRI Nifty 50 TRI
  • 11. HIGH DIVIDEND YIELD COMPANIESV/S BROADERMARKET Withthe rightmix of stocks, dividendscan provide cumulativegrowth astheearningscanbe reinvested backinto the portfolio or be used to buyadditionaldividend-payingshares—asustainablewayof investingthatbecomeseven morefavorable 0 100000 200000 300000 400000 500000 600000 700000 Jan-08 Oct-08 Jul-09 Apr-10 Jan-11 Oct-11 Jul-12 Apr-13 Jan-14 Oct-14 Jul-15 Apr-16 Jan-17 Oct-17 Jul-18 Apr-19 Jan-20 Oct-20 Jul-21 Apr-22 Jan-23 Value of INR 1 lakh invested High DividendYield Companies Broader market INR 5.74 lakhs INR 4.20 lakhs Source: NSE & MFI Explorer. Past performance may or may not be sustained in future. Data as on Jan 31, 2023. Date of Investment is considered from Jan 01, 2008 as date of investment i.e. the date when Nifty Dividend Opportunities 50 TRI values areavailable. NiftyDividendOpportunities50TRI Nifty500 TRI
  • 12. Optimum cashflows Increased focus of largeinvestor community towards companies with stable & optimum free cashflows Dividends are considered to be a common objective of investor fraternity & Corporate managements Common Objective Stability + Growth Corporate Governance Dividends reflect sustainable future performance& long-term growth visibility Propensity to pay dividends is well aligned with Improving corporategovernance CONSISTENCYOF DIVIDENDS – THE LARGER PICTURE
  • 13. DIVIDENDS – COMMONBELIEF VIS-À-VIS OUR VIEW Dividendcompanies are sector agnostic &reflect optimum cashflowmanagement Dividendcompanies withstable cashflowsalsohave the potential for long-termgrowthcompounding Strategic/tactical opportunities amongst consistent dividendpaying companies that may exist across the market cap spectrumat different point intime Dividendyieldcompanies withapotential togrow dividends over time canbe growthorientedcoupled withan ability to returncashtoshareholders Common belief… Our view… Dividend + Growth Dividend areattributed to sector specific gigantic companies with cash surplus Dividend arereflective of companies with negligible growth prospects to deploy excess cash Dividends represents only large cap oriented stocks Dividend Investing IsEquivalentto Value Investing Dividends
  • 14. [An open-ended equity scheme investing predominantly in dividend yielding stocks] Presenting SBI DIVIDEND YIELD FUND
  • 15. 0% - 35%* 65% - 100%* ▪ The overall endeavour is to constructa portfolio with aggregate dividend yield that is at least 50% higher than that of the Nifty 50 Index. ▪ Endeavour to investpredominantly in a well- diversified portfolio of equity and equity related instruments of dividend yielding companies ▪ The Scheme will consider dividend yielding stocks which havepaid dividend/buyback in at least 1 of the 3 preceding FY ▪ Other stocks in the universe ▪ Investin Debt & money market securities ▪ Units of REITS & InvITs ▪ Overseas Securities BROADPORTFOLIOCONSTRUCT *The above image is for representation purpose only. Portfolio will be managed as per the stated Investment Objective & Strategy as detailed in SID. For detailed asset allocation & Investment Strategy, pleaserefer Scheme Information Document.
  • 16. CURRENT PORTFOLIOAPPROACH Diversified allocation across market capitalization Style Agnostic as it may be the outcome of stock selection No sector bias, sector allocation resultant of bottom up stock picking Businesses with attractive dividend yields + Companies with potential growth in dividends Tactical investment opportunities in domestic and overseas markets Aim to achieve aggregate dividend yield that is at least 50% higher than that of the Nifty 50 Index DIVIDEND YIELD PORTFOLIO The portfolio of the scheme is subject to changes within the provisions of the Scheme Information document of the Scheme. For detailed asset allocation and other scheme features, pleaserefer to the Scheme Information Document (SID).
  • 17. APPROACH1: HIGH DIVIDEND YIELD Source: Bloomberg & Company Annual Reports. The above is for illustration purposes only to givean idea about the investment philosophy..The fund manager will takeappropriate call atthe time of construction of the portfolio.Itshould not be considered as investment advicein any aspect. Pastperformance may or may not be sustained in future Illustration: Companies with attractive dividend yields • As the business matured, the company increased dividend payoutsfrom FY19 onwards. • With higher dividends, it becamea classic utility stock which investorsbuy mainly for dividend yields. • Greater visibility of dividends and capital allocation aided stock performance. • Additionalkicker came from monetization of assetsvia INVIT. 0.00 2.25 4.50 6.75 9.00 0 400 800 1,200 1,600 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Power Transmission Mkt Cap (INR B) Power Transmission Div Yield (%) Nifty Index Div Yield (%) Power Transmissioncompany withattractive dividendyield FY Market Cap (INR in Billion) Dividend payouts (INR in Billion) 2010 451 6.3 2011 472 8.1 2012 501 9.8 2013 490 12.7 2014 549 13.5 2015 760 10.5 2016 728 12.1 2017 1,032 22.8 2018 1,011 27.5 2019 1,035 43.6 2020 832 52.3 2021 1,128 62.8 2022 1,512 102.9
  • 18. APPROACH2: DIVIDEND GROWTH Source: Bloomberg & Company Annual Reports. The above is for illustration purposes only to givean idea about the investment philosophy..The fund manager will takeappropriate call atthe time of construction of the portfolio.Itshould not be considered as investment advicein any aspect. Pastperformance may or may not be sustained in future Illustration : Potential Growth In Dividends IT Company paying Consistent Dividend&poisedfor growth in dividends per share FY Market Cap (INR in Billion) Dividend payouts (INR in Billion) 2010 1,528 39.1 2011 2,317 27.4 2012 2,288 48.9 2013 3,084 43.1 2014 4,178 62.7 2015 5,002 154.7 2016 4,966 85.7 2017 4,792 92.6 2018 5,454 255.5 2019 7,511 272.5 2020 6,852 273.8 2021 11,755 337.9 2022 13,685 379.3 0 2 3 5 6 0 4,000 8,000 12,000 16,000 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 IT Stock Market Cap (INR B) IT Stock Div Yield (%) Nifty Index Div Yield (%) • Strong track record of dividend payoutand dividend growth backed by consistently growing revenuesand earnings, cash flow generation and healthy dividend payoutratios. • Company hasdone buybacksover and above dividends, enhancing shareholder’syield further and aiding EPS growth. • Dividends (including buybacks) have grownatCAGRof >12% over 5 yearsand 10 yearsending March 2022. • Stock hasbeen a strong compounder over the long term.
  • 19. HOW CAN YOU GET REGULAR TAX EFFICIENT CASH FLOWS?
  • 20. SWP (A) FOR REGULAR CASH FLOW REQUIREMENTS (1/2) We talked about Investments, but what about the Withdrawal plan? Need How does it work Make an investment Analyzeyour cash flow requirement Opt for SWP (A) in growth or IDCW option for the desired amount & frequency The remaining corpus will continue to earn returns We make investments to plan fora better future.But all of us havethe need for regular cash flow. Systematic Withdrawal Plan (SWP) is a ready-made tool to get regular cash flows in a very simple and tax-efficient manner.
  • 21. Under SWP (A) facility, investors will have the option to withdraw fixed % of the cost of investment or any specifiedamount to meet their regular cashflow needs at various frequencies. Multiple options Confidence SWPs providethe confidenceof getting a fixed amount at a pre-determined frequency. Wealth Creation Long term wealth creation opportunity along with regular and steady cash flow. Tax efficient Tax efficient option as compared to traditional withdrawal plans (Dividend, MIP etc). Indexation Indexation benefit on LTCG for non-equity fund. Flexibility Allows the investor to change the withdrawalamount and frequency of withdrawalof any time. Smooth & transparent process The entire process is hassle-freeand transparent. Multiple options Benefits SWP (A) FOR REGULAR CASH FLOW REQUIREMENTS (2/2) Applicable months for different frequency:Monthly – All months;Quarterly- December, March, June, September;Halfyearly – March & September;Yearly– March;Anyamount – Applicable months as per chosen frequency (Half Yearly) 3% Any amount > Rs. 500 ( Monthly /Quarterly /Half Yearly / Yearly) (Yearly) 6% (Monthly) 0.5% (Quarterly) 1.5%
  • 22. TAX EFFICIENCY OF SWP (A) SCORESOVER DIVIDENDS Investors looking for regular cashflow Invest in Direct stocks of high dividend yield company Invest in Dividend Yield Fund Dividend Taxation^ 30%* + Surcharge @ 10% or 15% + Cess @ 4% = 34.32% or 35.88% IDCW payouts from scheme Creating Cashflows using SWP (A) Dividend Taxation^ 30%* + Surcharge @ 10% or 15% + Cess @ 4% = 34.32% or 35.88% Capital Gain Taxation^ STCG : 15% + Surcharge @ 10% or 15% + Cess @ 4% = 17.16% or 17.94% LTCG: 10% (Without Indexation)# + Surcharge @ 10% or 15% + Cess @ 4% = 11.44% or 11.96% *Assuming Investor falls in the highest tax bracket. # LTCG upto Rs 1 lakh is exempt from tax. Surcharge to be leviedat:• 37% on base tax where specifiedincome exceeds Rs. 5 crore;• 25% where specifiedincome exceeds Rs. 2 crore but does not exceed Rs. 5 crore;• 15% where total income exceeds Rs. 1 crore but does not exceed Rs. 2 crore;and • 10% where total income exceeds Rs. 50 lakhs but does not exceedRs. 1 crore. ^Enhanced surcharge of 25% and37% will not apply in case of income bywayof dividendorcapitalgains on securities covered u/s. 111A &112A. Specifiedincome – Total income excludingincome bywayof dividend orincome underthe provisions of section111A and 112A of the Act. IDCW-Income Distributioncum Withdrawal
  • 23. ILLUSTRATION: TAX EFFICIENCY Illustration:Assume aninvestor invests INR 10 lakhs inSBI Dividend YieldFund& Direct Stocks Alternatives available with an investor for regular cashflows 1) Choosefor SWP(A) option fromthe SBI Dividend Yield Fund @ 6% p.a of the costof investment 2) Chase expected dividends fromthe portfolio of stocks @ 6% p.a dividend yield Withthe use of SWP(A) featurein the SBI Dividend YieldFund,an investorcan have tax efficienthighercashflows relative to dividendsfrom directstocks The above table is only for illustration purpose and shall not be construed as tax advice or investment advice in any manner. Exit Load if any has not been assumed in the computation. Investors are hereby advised to consulta Financial Advisor ora TaxConsultant before making investment decisions. Dividends are taxed at 30%.(assuming income falls in the highest slab), short term capital gains at 15%, and long term capital gains at 10%. Tax rate further includes Surcharge at 15% and Cess @4%. Rate of return for SBI Dividend Yield fund is assumed to be 10% p.a. Returns assumption is strictly forillustrative purpose onlyanddoes not indicate anyreturn guarantee. Years SWP(A) Tax Net cashflows Dividends Tax Net cashflows @ 6% cost of investment @ 6% yield Year 1 60,000 652 59,348 60,000 21,528 38,472 Year 2 60,000 1,245 58,755 60,000 21,528 38,472 Year 3 60,000 1,785 58,215 60,000 21,528 38,472 Year 4 60,000 2,275 57,725 60,000 21,528 38,472 Year 5 60,000 2,720 57,280 60,000 21,528 38,472 Total 300,000 8,677 291,323 300,000 107,640 192,360 Alternative 1 : SWP(A) Alternative 2 : Dividends Tax Outflowas a % of Cashflows 2.89% 35.88%
  • 25. OUR INVESTMENT ETHOS BOTTOM UP RESEARCH ESG + FORENSIC QUANTITATIVE MODELS MULTI FACTOR MODEL INVESTMENT UNIVERSE MACRO +ASSET ALLOCATION As The CoreOf Our Investment Process, Each Stock In Our InvestibleUniverse Goes Through A RigorousMulti Step Analysis Portfolio will bemanaged as per the stated Investment Objective, Investment Strategy etc. as detailed in SID.For details, pleaserefer Scheme Information Document available on https://www.sbimf.com/.
  • 26. ▪ ~ 350 stocks considered for screening by sector Analysts ▪ Active Screening & Monitoring ▪ Detailed Analyst Reports ▪ Set a Target Price for each stock in the Coverage ▪ Analyst Rating Sectors: ▪ Tobacco ▪ Controversial weapons ▪ Alcohol ▪ Gambling ▪ Adult entertainment Controversies: ▪ High/Severe impact on society, environment and risks to the long- term sustainability of the business External: ▪ Ratings from global reputed ESG ratings firm/s Internal: ▪ Build SBIFM capabilities ▪ Leverage Amundi expertise Fundamentals: ▪ Return on capital ▪ Skin in the game ▪ Earnings growth ▪ Track Record ▪ Competitive advantage ▪ Quality of Management ▪ Longevity / scale of opportunity ▪ Relative Valuations INVESTMENT UNIVERSE INTERNAL COVERAGE EXCLUSIONS SECTOR + CONTROVERSY ESG RATING/ SCORINGS EXTERNAL + INTERNAL PORTFOLIO CONSTRUCTION FUNDAMENTALS ESG INVESTMENTPROCESS ESG PortfolioConstruction
  • 27. FORENSIC ACCOUNTINGFRAMEWORK Objective: Are published accounts a true reflection of actual business performance? Process: Listed companies graded into quartiles Profit & Loss checks Balance Sheet checks Cash flow checks Relatedparty checks Audit quality checks Aggressive accounting of P&L items. Is Balance sheet misstated? Are cashflows consistent with other statements like P&L and Balance Sheet? Extent of related party transactions on P&L and Balance Sheet Quality of Auditor and Audit process Purpose Revenue recognition, expense recognition, non- core profit recognition etc Cash balance misstatement, off-balance sheet risk, working capital position etc Gold plating on capital expenditure, cashflow vs corresponding P&L entries etc Loans and advances, receivables, sales and purchases Audit independence, audit qualifications, quality of auditor etc Examples
  • 28. ▪ Monthly Quant-Q score Model ▪ Screeners ▪ In-house Research ▪ Channel Checks ▪ Sell-side Research ▪ Competitors ▪ Customers ▪ Suppliers ▪ Management ▪ Earnings Model ▪ Value Framework ▪ Moats ▪ Cross Pollination ▪ Rationale ▪ Target Price ▪ Recommendations ▪ Checklist ▪ Best Ideas ▪ Risks ▪ Template ▪ Buy / Sell Decisions ▪ Risk Management ▪ Portfolio Sizing ▪ Analyst Portfolios ▪ Market Intelligence ▪ Price Volumes / Trade offs ▪ Technicals ▪ Update ▪ Review the recommendations ▪ Reinforce in meetings ▪ Peer Review Idea Generation Scuttlebutt Analysis Investment Thesis Portfolio Construct Execution Monitoring ROBUST7-LAYERED INVESTMENTPROCESS Portfolio will be managed as per the stated Investment Objective & Strategy as detailed in SID. For detailed Investment Strategy, please refer Scheme Information Document of the respective schemes
  • 29. PRODUCT SUITABILITY & 5 REASONS WHY…
  • 30. SUITABLE FOR… Investor looking for potential long term wealth Creation (>4 years), wanting to have exposure to relatively strong businesses Direct equity investors Investor seeking a diversified portfolio with investments in high dividend yielding stocks based on research expertise Millennials& Firsttime Investors Tax Efficiency in cashflows One stop solution that offers tax efficient SWP facility to meet regular cashflows unlike dividends from individual stocks 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.
  • 31. Unconstrained, sector & market cap agnostic approach Active Stock Management with Bottom- up strategy Strong pedigree of Investment Expertise across market cap Well researched Consistent high dividend yield / potential growth in dividends Style Agnostic with broader opportunity set for stock selection 5 REASONS WHY SBI DIVIDEND YIELD FUND
  • 32. FUND FACTS For details, please refer to the Scheme Information Document (SID). & Mr. Mohit Jain is the dedicated fund manager for overseas securities. ^Additional Purchase:Rs. 1000 and in multiples of Re.1 thereafter. *For detailed minimumamount of SIP acrossfrequencies& number ofinstallments, please refer to SID/KIM. Name SBI DividendYield Fund An open ended equity scheme investing predominantly in dividend yielding stocks. Category Dividend Yield Fund Manager& Mr. Rohit Shimpi First Tier Benchmark Index NIFTY 500 TRI Minimum Application^ Rs. 5000/- andin multiples of Re. 1 thereafter Minimum Monthly SIP* MinimumRs 500 & in multiples of Re. 1 Exit Load • NIL - If units purchased or switched in from another scheme of the Fund are redeemed or 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
  • 33. Trusted by over 10 million Investors Managing assets for over 35 years Signatory of UNPRI & CFA Asset Manager Code of Conduct Servicing investors across ~99% pin codes of the country. Investment team of ~65 members with an average experience of 15 years of the country An array of digital tools for ease of transaction WHY SBIFML
  • 34. DISCLAIMER This presentation is for information purposes only and is not an offer to sell or a solicitation to buy any mutual fund units/securities. The views expressed herein are based on the basis of internal data, publicly available information & other sources believed to be reliable. Any calculations made are approximations meant as guidelines only, which need to be confirmed before relying on them. 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 Limited, SBI Mutual Fund 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. Mutual Fund investments are subject to market risks, read all scheme related documents carefully.