SBI Blue Chip Fund
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.
Product LabelingThis product is suitable for investors
who are seeking*:Riskometer
• Long term capital appreciation.
• Investment in equity shares of companies
whose market capitalization is at least
equal to or more than the least market
capitalized stock of S&P BSE 100 index to
provide long term capital growth
opportunities.
Index
• Why Large Caps & Why now?
• SBI Blue Chip Fund
• Investment Philosophy & Fund Details
• Why Invest?
• Performance
Large caps are relatively stable
• In the long term, large caps are usually more consistent than mid & small caps along with a lower downside risk
Past performance may or may not be sustained in future. Source: BSE India. The above chart depicts the high-average-low 3 year return (CAGR) of the specified indices. Period: September 16, 2005 to November 30, 2017
8.88% 13.35%8.35%
-30.00%
-20.00%
-10.00%
0.00%
10.00%
20.00%
30.00%
40.00%
S&P BSE Large Cap S&P BSE Mid Cap S&P BSE Small Cap
Rolling 3 year returns (2005 - 2017)
Large caps perform across market cycles
• Large caps perform in line with broader markets during bull markets
• During a recessionary cycle, large caps are better equipped to withstand a slowdown
Past performance may or may not be sustained in future. Source: BSE India. The performance depicted above are absolute returns.
118%
-53%
129%
-24%
40%
158%
-64%
192%
-36%
54%
123%
-72%
215%
-40%
67%
Rising Market
(31-Dec-05 to 31-Dec-07)
Falling Market
(31-Dec-07 to 31-Mar-09)
Rising Market
(28-Feb-09 to 31-Oct-10)
Falling Market
(31-Oct-10 to 30-Dec-11)
Rising Market
(31-Dec-13 to 30-Jan-15)
Performance across market cycles
S&P BSE Large Cap
S&P BSE Mid Cap
S&P BSE Small Cap
Large caps have higher liquidity & lower drawdown
• Large caps are more widely traded making them more liquid than mid & small caps
• Large caps usually have lower drawdowns than mid & small caps restricting the fall in down markets
Source: Bloomberg. All listed Indian securities have been utilised for classifying market cap. The top 100 companies have been classified as large cap & the rest as mid & small cap. Data as on Nov 30, 2017.
Maximum Drawdown(Sep 2005 – Sep 2017)
S&P BSE Large Cap
-61.6%
S&P BSE Mid Cap
-71.0%
S&P BSE Small Cap
-76.1%
39.24
4.85
0 5 10 15 20 25 30 35 40 45
Large Cap
Mid & Small Cap
Average Volume Traded (in lacs): 6 months
Fund Positioning
• Diversified basket of equity stocks of companies whose market cap is at least equal to or more than the least market capitalised stock of S&P BSE 100 index
• Allocation to large caps through bottom-up stock selection; currently large caps are 72.0% of net assets
• Opportunistic allocation to high conviction midcaps; current allocation is 18.5% of net assets
• Max cash allocation endeavoured to be capped at 10%
• Benchmark: S&P BSE 100; Fund Manager: Ms. Sohini Andani
• Investment perspective – medium to long term, 2-3 years
Gro
wth
Ble
nd
Val
ue
Large
Mid
small
72.0
18.5
0.0 4.6 0.0 4.9
Large Cap Mid Cap Small Cap
Futures(Long) Futures (Short) Cash
Investment Philosophy
Monitoring key strategic
management decisions
Stock Selection Parameters
Management with consistent
performance in terms of growth & capital allocation
Valuations –relative to own
history & change in growth profile
Change in leadership
Large Caps (80 to 100%):Investment with a 1 year perspective
Mid Caps (up to 20%):Investment made with a 2-3 perspective
Allocation based on better growth outlook & valuation gap with large caps
• Bottom-up investment strategy along with focus on sector dynamics
• Focus on alpha generation through better stock selection within a sector
Fund Details
Top 10 SectorsTop 10 Equity
Holdings
Sector % of Assets
FINANCIAL SERVICES 32.05
AUTOMOBILE 10.61
CONSUMER GOODS 9.01
ENERGY 7.04
CONSTRUCTION 6.05
PHARMA 5.42
INDUSTRIAL MANUFACTURING 4.21
CEMENT & CEMENT PRODUCTS 3.89
FERTILISERS & PESTICIDES 3.74
IT 2.54
Total 84.55
Holdings% of
Assets
HDFC BANK LTD. 8.27
LARSEN & TOUBRO LTD. 3.70
NESTLE INDIA LTD. 3.10
MAHINDRA & MAHINDRA LTD. 3.06
STATE BANK OF INDIA 2.78
HINDUSTAN PETROLEUM CORPORATION LTD. 2.77
BHARAT ELECTRONICS LTD. 2.76
ITC LTD. 2.71
INDUSIND BANK LTD. 2.54
UPL LTD. 2.39
Total 34.08
Data as on 30.11.2017
Why Invest?
Macro economic conditions are gradually recovering; policy reforms have been initiated
Large caps stocks are relatively stable, low risk & liquid;perform across market cycles
SBI Blue Chip Fund - A Large cap fund with opportunistic allocations to mid caps (up to 20%)
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2
3
3
• Mr. Navneet Munot
Navneet joined SBIFM as Chief Investment Officer in 2008. In his role Navneet is responsible for
overseeing investments across asset classes worth over $29.10 billion. His prior stint was with
Morgan Stanley Investment Management as Executive Director and head- multi strategy boutique.
Prior to that, Navneet was the Chief Investment Officer - Fixed Income and Hybrid Funds at Birla
Sun Life Asset Management Company Ltd. Navneet had been associated with the financial services
business of the Birla group for 14 years and worked in various areas such as fixed income, equities
and foreign exchange.
Navneet holds masters in accountancy and business statistics from the University of Ajmer and is a
Chartered Accountant from ICAI. He is a charter holder of the CFA Institute USA and CAIA Institute
USA. He is also an FRM charter holder of Global Association of Risk professionals (GARP).
• Ms. Sohini Andani
Ms. Sohini Andani joined SBI Funds Management Pvt. Ltd. as Head of Research in 2007 and was
subsequently promoted as a portfolio manager in 2010. Prior to joining SBIFM, Sohini was a senior
research analyst at ING Investment Management. Sohini has over 11 years of experience in
research on the sell side. Her previous assignments were with leading broking outfits like ASK
Raymond James, LKP Shares and Securities, Advani Share Brokers and KR Choksey Shares and
Securities. Sohini is a commerce graduate from Mumbai University and a Chartered Accountant
from ICAI
Biographies
SBI Funds Management Private Limited
63% 37%
▪ India’s premier and largest bank with over 200
years experience (Estd: 1806)
▪ Asset base of USD 465bn*
▪ Pan-India network of ~23,737 branches and
59,108ATM’s as at end of December 2016
▪ Servicing over 299 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 Amundi, the parent
company of Amundi Asset Management listed in
Euronext Paris
▪ More than 2,000 institutional clients and distributors in
30 countries
▪ Over 100 million retail clients via its partner networks
▪ USD 1083 bn AuM as at end of December 2016
▪ Ranking No 1 in Europe, Top 10 worldwide #
*Source: SBI Analyst Presentation as on end December 2016. USD 1 = INR 67.95
# Source : Amundi website as on end December 2016
SBI Funds Management: India’s First Bank Sponsored Funds
Established in 1987: A leading asset manager in India
Broad
Investor
Base
AUM
USD 14.09 bn
Wide
Distribution
Network
Experienced
Investment
Team
Extensive
Product
Range
Broad
Investor
Base
AAUM
Rs 1,68,816 crs
Wide
Distribution
Network
Experienced
Investment
Team
Extensive
Product
Range
* Quarterly average September 2017
INR 188,030 Crores* AAUM in mutual funds
Asset management across mutual funds, segregated managedaccounts, domestic advisory & offshore advisory business
Multiple asset classes ranging from equities and debt, moneymarket to ETFs and structured funds
Investment team of 35 professionals with strong track record
Broad customer base with ~ 5.10 million folios related toindividual, corporate and institutional investors
SBIFM: A Complete Framework
Expertise
Highly experienced team
Strong industry relations
Complete in-house research
Processes
Structured & Disciplined
Rigorous investment templates
Agility with Flexibility
Risk Management
Six member team
Coherent monitoring
Group Advantage
25 years of experience
Both domestic and international strengths
Investors trust
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 fundunits/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 tobe confirmed before relying on them. These views alone are not sufficient and should not be used for the developmentor implementation of an investment strategy. It should not be construed as investment advice to any party. All opinionsand estimates included here constitute our view as of this date and are subject to change without notice. Neither SBIFunds Management Private Limited, SBI Mutual Fund nor any person connected with it, accepts any liability arising fromthe use of this information. The recipient of this material should rely on their investigations and take their ownprofessional advice