SBI Infrastructure Fund

Introduction

SBI Infrastructure Fund is an open-ended scheme that invests in a diversified portfolio across all market caps. The main objective is to invest in equity and equity-related securities, where the companies are either engaged in or expected to benefit from the growth and development of infrastructure.

Key Info

1. The Current Net Asset Value of the SBI Infrastructure Fund is Rs. 24.86 for its Regular plan and Rs. 26.22 for its Direct plan as of September 2021.

2. The SBI Infrastructure Fund currently holds Assets under Management worth Rs. 699.57 Crores as of August 2021.

3. The expense ratio of the fund is 2.54% for the Regular plan and 1.96% for the Direct plan as of August 2021.

4. SBI Infrastructure Fund has an Exit load of 0.50% if redeemed within 30 days, but Nill after 30 days.

5. The minimum investment requirement is Rs. 5000, the minimum additional investment is Rs. 1000 and the minimum SIP investment is Rs. 500.

Investment strategy & Benchmark

The scheme’s investment strategy is to invest predominantly in equity stocks of companies that are directly/indirectly engaged in infrastructure growth and provide long-term capital growth. The fund is benchmarked against NIFTY Infrastructure Total Return Index (TRI).

Asset Allocation Of SBI Infrastructure Fund

1. The asset allocation of the fund comprises around 97.97% in equities, 0.0% in debts, and 2.03% in cash & cash equivalents.
2. The top 10 equity holdings of the fund constitute around 49.49% and the top 5 sectors constitute around 34.08% of the assets.
3. The fund largely invests across all market capitalizations, around 41.53% in giant & large-cap companies, 29.64% in mid-cap, and 28.83% in small-cap companies.

Portfolio

I. No of stocks – 33.
II. Top 10 Stocks – 49.49%.
III. Top 5 Stocks – 34.08%.
IV. Price-Book(P/B) ratio – 3.00.
V. Price-Earnings(P/E) ratio – 24. 96.

Top 10 stocks

I. Larsen & Toubro – 12.39%.
II. Bharti Airtel – 8.01%.
III. UltraTech Cement – 7.02%.
IV. Reliance Industries Ltd – 4.47%.
V. Bharat Petroleum Corporation – 3.37%.
VI. Carborundum Universal – 3.29%.
VII. Kennametal India – 3.26%.
VIII. Timken India – 3.11%.
IX. GR Infraprojects – 3.09%.
X. The Great Eastern Shipping Company – 2.84%.

SBI Infrastructure Fund Regular Growth

Details

I. NAV – Rs. 24.86(as of September 2021).
II. IDCW – Rs. 22.12.
III. Returns – 6.61%(since launched in July 2007).
IV. Returns per year(5 years avg) – 13. 86%.
IV. Benchmark – NIFTY Infrastructure TRI.
V. Risk – Very High.
VI. Type – Open-ended (Equity Infrastructure).
VII. Asset Under Management(AUM) – Rs. 699.57 Crores(as of August 2021).
VIII. Expense ratio – 2.54%(as of August 2021).
IX. Turnover – 70%.

  • Minimum investment – Rs. 5000.
  • Minimum additional investment – Rs.1000.
  • Lock-in period – Not applicable. Minimum SIP investment – Rs.500.
  • Minimum STP investment – Rs.500.
  • Exit load – 0.5% for redemption within 30 days, and Nill after 30 days.
  • Minimum no of cheque – 12.
  • Minimum withdrawal – Rs. 500.
  • Minimum SWP investment – Rs.500.

SBI Infrastructure Fund Direct-Growth

Details

I. NAV – Rs. 26.22(as of September 2021).
II. IDCW – Rs. 23.20.
III. Returns – 13.54%(since launch in January 2013).
IV. Returns per year(5 years avg) – 14.62%.
IV. Benchmark – NIFTY Infrastructure TRI.
V. Risk – Very High.
VI. Type – Open-ended (Equity Infrastructure).
VII. Asset Under Management(AUM) – Rs. 699.57 Crores(as of August 2021).
VIII. Expense ratio – 1.96%(as of August 2021).
IX. Turnover – 70%.

  • Minimum investment – Rs. 5000.
  • Minimum additional investment – Rs.1000.
  • Lock-in period – Not applicable.
  • Minimum STP investment – Rs.500.
  • Minimum SWP investment – Rs.500.
  • Exit load – 0.5% for redemption within 30 days, and Nill after 30 days.
  • Minimum withdrawal – Rs. 500.
  • Minimum SIP investment – Rs.500.
  • Minimum no of cheque – 12.

Taxation

1. Gains over Rs. 1 lakh are taxed at a rate of 15% (Short term Capital Gain Tax or STCG) if units are redeemed within 1 year of investment.
2. No tax is to be paid as long as you continue to hold the units.
3. Gains of more than Rs. 1 lakh will be taxed at a rate of 10% (Long term Capital Gain Tax or LTCG). Any cess/surcharge is not included.
4. For units redeemed after 1 year of investment, gains of upto Rs. 1 lakh accruing from those units in a financial year shall be exempted from tax.

Dividends,
1. Dividends are added to the income of the investors and taxed according to their respective tax slabs.
2. Further, if an investor’s dividend income exceeds Rs. 5,000 in a financial year, the fund house also deducts a TDS of 10% before distributing the dividend.

Pros and Cons Of SBI Infrastructure Fund

Pros,

  • The fund has invested in infrastructure companies such as construction companies, financial services, metals, telecom, and many other major growth drivers. So, the fund could be able to provide steady returns in the long term.
  • The fund can flex to adapt and capitalize if the market condition changes.
  • The fund’s flexibility also allows it to be more responsive than reactive.

Cons,

  • Returns are comparatively low than pure equity lead funds.
  • Some of the companies in the fund’s portfolio do include debt. This factor could affect the fund’s returns which could get less than expected in long term.

Who Should Invest In SBI Infrastructure Fund

This is a fund that invests mainly in company shares which are infrastructure-related activities. Risk-averse investors should avoid funds for having a slim investment mandate like this one. Instead, they should invest in multi-cap funds or diverse their portfolio which provides complete freedom in investment and expectations of maximum gains.

Fund Manager

Ms. Nidhi Chawla is currently managing the SBI Infrastructure Fund. She holds a BBS degree, MBE, and CFA. She joined SBI Mutual Fund in May 2007 and managing this fund since 2018. Ms. Nidhi has been working as an equity research analyst which covers sectors like Real Estate, Infrastructure, and Construction.

Contact

Address – SBI Funds Management Ltd, 9th Floor-Crescenzo, C-38 & 39- G Block, Bandra-Kurla Complex, Bandra (East) Mumbai – 400051
Phone – 022-61793000 / 1800-425-5425
Fax – 022-22189663
E-mail – [email protected]
Website – http://www.sbimf.com

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