How SBI MultiCap Fund is different than other MultiCap Funds!
How SBI MultiCap Fund is different than other MultiCap Funds ! SBI Multicap Fund NFO Period 14/02/2022 to 28/02/2022……Aims to provide a mix of Large , Mid and Small cap companies Identified through a robust research process.How SBI MultiCap Fund is different than other MultiCap Funds!
1.No single fund manager has the capability of picking right stocks consistently in Large, Mid & Small caps. Either a fund manager is good in picking large cap, mid-cap or small cap i.e they are specialist in only one area.
In SBI, the senior analysts are specialists for one sector and choose the right stocks across caps and help to find the right stocks consistently year over year.
Any fund manager in the industry measures his fund performance against two things….
a) Benchmark
b) Against peer groups (ipru axis / HDFC/ Kotak)
In order to do so, he picks up stocks that have heavy weightage in Benchmark and try to cover benchmark stocks. Even if they don’t like or are positive on a particular sector, they hold those stocks as they are afraid of a rally in a particular sector. If a particular sector has rallied and they don’t have those stocks, then the fund will underperform. This risk the fund manager does not want to take, hence they make a diversified portfolio covering all sectors .
We SBI will be very different in making the portfolio of MultiCap. We will not try to cover benchmark stocks and would not like to have all sectors in the fund; we would rather be having bottom- up stock picking and follow absolute returns theory in this fund.
n this fund we would be beating returns of the portfolio having benchmark coverage stocks by a huge margin.
Our fund is going to be sector agnostic, high conviction and has concentrated portfolio
Each fund manager has a bias towards value growth or quality. When an individual fund manager makes a portfolio an individual preference can be seen in the portfolio
For example:- Mr. R Srinivasan likes growth stocks, Ms. Sohini Andani likes quality stocks & Mr. Dinesh Balachandran likes value stocks.
The team of analysts help us to review the individual person biases in the portfolio.
This portfolio will have less than 30 high conviction stocks concentrated within the portfolio and best stocks with SBI. This will invest 27% in large, mid and small caps and not more than 10% in international stocks.
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