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SBI Mutual Fund on Friday announced the launch of SBI Multicap Fund, an open-ended equity scheme that will invest in a mix of best ideas across large, mid, and small-cap companies. The new fund offer (NFO) will open on 14 February and close on February 28 and the benchmark index of the fund is the NIFTY 500 Multicap 50:25:25 TRI.
The fund will not have any sector or style bias as the outcome of portfolio selection will be based on the analyst recommendations, the company said in its statement. “The Fund combines the strength of high conviction stock ideas of the sector analysts that will be selected from the fund house’s active coverage universe (~350 companies). The high conviction ideas recommended by the analysts are arrived at after a robust 7-step research process wherein ranks and confidence scores are assigned to each recommendation.."
The fund will have 25% of the total corpus in large, mid, and small-cap companies each. The fund offers MITRA SIP feature, which will let investors invest through a Systematic Investment Plan (SIP) and simultaneously register a Systematic Withdrawal Plan (SWP) which will be activated at the end of the SIP period to generate tax-efficient regular cash flows.
"We have witnessed a multi-fold growth in market capitalisation across large cap, mid cap & small cap segments indicating increased investor participation in the equity market," said D P Singh, chief business officer, SBI MF.
“A Multicap Fund makes a good case for investors who wish to have a dedicated allocation across large, mid, and small cap companies in one fund. Millennials, First time Investors (with more than 5 years’ time horizon, wanting to have an unbiased flavour of market caps), and Direct Equity Investors who have a limited understanding of researching companies or have multiple investments across market capitalisation, looking for a consolidated solution through a single fund can choose this fund. We believe Multicap Funds are an ideal investment option for investors who would like a mix across market cap as they provide diversification of opportunities and growth potential while getting the benefit of limiting downside risk."
R Srinivasan will be the fund manager for SBI Multicap Fund along with Mohit Jain as the dedicated fund manager for investment in foreign securities.
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