SBI Emerging Businesses Fund - Regular Plan - Growth: Top Performing Fund Since Launch

SBI Emerging Businesses Fund - Regular Plan - Growth: Top Performing Fund Since Launch

May 14, 2018

Mutual funds invest in a diverse portfolio which aims at profit maximization and risk mitigation. The composition of the investment varies from one mutual fund to another. Equity Funds Mid and Small cap, as the name suggests invests in companies which have mid or small capitalization. The scope of earning more revenues in a short period of time is more for mid and small cap equities when compared to equity of the companies which have large capitalization. Mid and small cap equity is known to be less stable and more prone to market vagaries. This risk element caused due to the market vagaries is offset by investing in diverse portfolio which would balance out between the loss making equity and high performing ones.

Overview of SBI Emerging Businesses Fund - Regular Plan - Growth

SBI Emerging Business Fund is an Equity fund mid and small Cap mutual fund which was launched on 11-10-2004. The minimum investment is Rs. 5000 and there is an option of investing further into this mutual fund with a minimum investment of Rs.1000. The fund focuses on investing in equities of emerging business related to exports, outsourcing and other global opportunities. This portfolio of investment has a potential of earning higher revenues even though the propensity of risk is higher due to the global factors.

Consumer non durables, Banks, Industrial products and Finance are the top 4 sectors into which the investments of SBI Emerging Business Fund are made. They constitute 18.12%, 17.6%, 16.79% and 12.26 % of investments respectively, contributing to a total of 57% of the total equity. The rest of the investments are made in other sectors which include Transportation, Pharmaceuticals, Chemicals, Consumer durables, Hotels etc. These five sectors combine for a total of 30 % of the investments with a share of 8.9%, 7.12 %, 5.42%, 4.63% and 3.59% respectively.

Proctor and Gamble, HDFC Bank Ltd, Devi’s Laboratories, Gruh Finance Ltd, Elgi Equipments, The Great Indian Shipping Company, Solar Industries India Ltd, Kirloskar Oil Engines Ltd, Kotak Mahindra Bank Ltd etc are few of the companies which are part of the portfolio into which SBI Emerging Businesses Fund has its investments.

SBI Emerging Businesses Fund - Regular Plan - Growth

The fund has been a consistently performing fund since the time of its inception.

Source: Swaraj Wealth Research

The 1-year return of the SBI Emerging Businesses Fund-Regular Plan-Growth outperforms the returns of the category as well as the benchmark performance. The 1-year return of this mutual fund is 27.16% compared to the 14.91% of the category and 15.73% of the S&P BSE 500 index. The 3-year,5-year and 10 years returns of this mutual fund also outperforms the average returns of the category of equity mid and small cap funds. Since the launch of the mutual fund, it has recorded a return of 21.42% which is comparatively higher than the average performance of Equity Funds Mid and Small Cap category during the same period (17.81%). The S&P BSE 500 returns during this period are 15.07%.

The Sip returns of the scheme have also recorded a higher return when compared to the industry benchmark index – S&P BSE 500.

Source: Swaraj Wealth Research

The Profit earned by SBI Emerging Business Fund - Regular Plan growth during the last year is 13,611 in comparison to 5,625 benchmark of S&P BSE 500 index. The returns on the SIP for this mutual fund over the last one year are 25.99 %, which is higher than the 10.48% returns of S&P BSE 500 benchmark.

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