SBI Focused Equity Fund: Fund Review

SBI Focused Equity Fund is among the top 5 focused funds as ranked by Upwardly. The fund gave 19.32% annualized return since its inception in October 2004. The fund manager, Mr. R Srinivasan, follows a bottom-up approach to select stocks for the portfolio. The fund has only 25 stocks investing across market capitalization and sectors. Investors looking for a long-term (at least 5 years) investment can invest in this fund.

 

 

Performance

SBI Focused Equity Fund is ranked among the top 5 focused funds on Upwardly. The fund has managed to beat its benchmark in the long-term. In the short-term the fund and benchmark’s performance was neck-to-neck.

SBI Focused Equity Fund has beaten its benchmark by 4 percentage points in the 5-year returns. The fund has performed better than most of its peers in the 5-year returns. It seeks to perform better than its benchmark and peers on a consistent basis. The fund gave 19.32% annualized return since its launch in October 2004.

Fund1 Year Return (%)3 Year Return (%)5 Year Return (%)
SBI Focused Equity Fund-6.57%13.19%18.72%
Axis Focused 25 Fund-1.16%16.08%17.31%
ICICI Prudential Focused Equity Fund-5.74%11.32%12.32%
Franklin India Focused Equity Fund-7.22%14.01%20.07%
Sundaram Select Focus Fund-1.76%13.22%13.4%

A SIP investment of Rs 5,000 a month in SBI Focused Equity Fund started 5 years ago is worth Rs 4.02 lakhs now. A profit of Rs 1.02K in just 5 years. Even if one chose to redeem their investment then they would be liable to pay tax on Rs 2,000 as gains up to Rs 1 lakh is exempt from taxes.

Fund Information

SBI Focused Equity Fund is among the top 5 funds in the category of focused funds. The fund is managed by Mr. R. Srinivasan since May 2009. The fund follows a bottom-up approach to stock picking. It invests in companies across market capitalization and sectors. The fund takes high conviction bets. At any point in time, the number of stocks in the fund will not exceed 30. Therefore it has a concentrated portfolio.

The fund aims to generate high returns over a 3 to 5-year period. The fund manager has an aggressive approach and invests in high growth companies. Therefore, growth stocks dominate the fund but there are a few value buys too. The value stocks are usually the lesser known names in the industry.

The fund has a concentrated portfolio with 25 stocks. The top five holding sectors constitute 70.69%% of the portfolio. These include financials (36.83%), FMCG (9.81%), engineering (9.55%), services (8.1%), and chemicals (6.4%).

Recommendation

SBI Focused Equity Fund is ideal for long term goals. Invest in this funds to build wealth for the long term. The funds invest in a small portfolio of companies. Since the diversification is low these funds can be volatile. It is suitable for long term investments. The fund accepts both lump sum and SIP investments. Invest in this fund for an investment horizon of at least 5 years to give the best results. Do not look at the returns for this fund in short-term. The short-term returns can be manipulative.

Fund NameSBI Focused Equity Fund
Original Fund NameSBI Emerging Businesses
Launch DateOctober 11, 2004
AUMRs 3,464 crore
Return (Returns greater than 1 year are annualized)Since Launch: 19.48%
1 Year: -6.57%
3 Year: 13.19%
5 Year: 18.72%
Expense Ratio2.33%
Fund Category RiskHigh
Investment PlanGrowth
Minimum Investment Horizon5+ years
Minimum InvestmentRs 5,000
Minimum Additional InvestmentRs 1,000
Exit Load1% if withdrawn within 1 Year(s)
No exit load if withdrawn after 1 Year(s)
Fund ManagerR. Srinivasan
0 Shares:
Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like