SBI Long Term Advantage Fund Series V aims to generate capital appreciation over a period of ten years by investing predominantly in equity and equity-related instruments of companies along with income tax benefit under 80C of the Income Tax Act, 1961. Key benefits of SBI Long Term Advantage Fund - Series V include Tax Savings, Potential Capital Appreciation and Tax Free Returns. Know more about this mutual fund at https://www.sbimf.com/en-us/sbi-long-term-advantage-fund-series-v
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SBI Long Term Advantage Fund Series V - A Close-Ended Equity Linked Savings Scheme (ELSS) - March 18
1. INVESTING IN LONG
TERM HAS ITS
ADVANTAGES
Invest up to ₹1.5 Lakhs and get tax benefits
*Data source: BSE Ltd. (www.bseindia.com) as on December31, 2007 and December 29, 2007. Past performance may or may not be sustained in the
future. "Deduction under 80C of the Income Tax Act, 1961.
SBI Long Term Advantage Fund- Series V
Tax benefits and potential Wealth Creation with
3. GST
Removal of cascading tax effect
Jan Dhan Accounts
30 crore accounts with total balance of INR 66k crore
RERA
To protect interest of homebuyer and ensure timely delivery of projects
Banking Regulation Act
A step towards resolution of Non-Performing Assets
Saubhagya Scheme
Rs163.2bn package to provide free power
connections to households under SECC* category.
*Socio-Economic Caste Census (SECC)
Government’s thrust on reforms
4. Source: Morgan Stanley, CMIE, Economic Outlook, SBIMF Research
ValuationsGDP growth likely to fall in FY18 and pick-up again in FY 19 Centre’s Fiscal Deficit is at 112% of BE as of Nov 2017
5.5 6.4 7.5 8.0 7.1 6.0 7.2 7.4
0.0
5.0
10.0
FY13 FY14 FY15 FY16 FY17 1H
FY18
2H
FY18e
FY19e
Real GDP
% FY18:
India’s Equity valuations relative to other EMs is in line
with historical 5 year average…
…and the relative RoE remains healthy
Macro & Markets
While fiscal situation seems to witness pressure, GDP growth is likely to recover in FY19
5. Liquidity: DIIs net buyers in Indian Equities
Domestic liquidity has outpaced foreign liquidity since 2015 Mutual Fund inflows have been particularly strong..
..to offset the insurance industry outflows
Source: MOSL, SBIMF Research
DIIs continue to
be net buyers in
Indian Equities
18
-12
18
29
-1
25
20 16 3
3 8
5
17
5
-5
6
-11 -13
-5
10
5
14
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Net DII Flows (US$ billion)
Net FII Flows (US$ billion)
2 3
-1
-6
1
-4 -4
4
11
7
18
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
US$ billion
Dom MF (US$ Billion)
4
14
7
1 5
-7 -9 -9
-1 -2 -4
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Insurance (US$ Billion)
6. Government’s
thrust on reforms
Macroeconomic
Scenario
ValuationsGovernment’s
thrust on reforms
Inflation – benign
Forex Reserves -
$400 bn
CAD – under
control
Foreign Direct
Investment flows - $
60 bn in FY17, $
33.7 bn in 1HFY18
P/E – High but all
other indicators are
below long term
averages
P/B – low
Market Cap to GDP
– low
Corporate
Profitability – low
Liquidity
DIIs continue to invest
in Indian equities
Surplus liquidity could
find its way into Indian
Markets
GST
Banking
Regulation Act
RERA
Saubhagya
Scheme-
Electricity for all
Key drivers and current status
8. Better Macro Scenario
Improving Corporate Profits
Liquidity
Government Reforms
Pick up in private investments
Continued
uptrend in
equity market
Stage set for broad based recovery
9. If you would have invested Rs.1 lac for a period of 10 years in S&P BSE 500
Scenarios for your investment
Amount in INR
Returns in CAGR
Best Case
23.4%
8,19,503
Median case
4,34,546
15.1%
Worst case
1,69,350
5.4%
Probability
of earning
negative
returns was
0%
Returns (CAGR)
Above 12%
10% - 12%
8% - 10%
5.4% - 8%
% of times the returns were in specified range
73%
9%
12%
6%
94% of
times you
would have
got returns
over 8%
Source: Bloomberg. 10 year rolling returns (with daily frequency)have been computed for S&P BSE 500 for period from 1st
Feb 1999 to 2nd Jan 2018.
Past performance may or may not be sustained in future.
Long Term Potential of Indian Equities
10. Indian
Equities
Fixed
Deposits
Gold Real
Estate
Well placed on the
back of
Expected
improvement in
corporate earnings
Conducive
fundamentals
Considered to be
safe investment
Relatively lower
interest rates - Is
that good enough?
Will it beat inflation?
Will it glitter?
Better option during
risk off scenarios
Returns are
commensurate for
inflation hedging
Regulatory hangover
Concerns regarding
over-capacity
Low growth in last
couple of years
What are your current investment options
12. Capital Appreciation: The scheme aims to generate capital appreciation over a period of ten years by
investing predominantly in equity and equity-related instruments of companies along with income tax
benefit.
Multi-cap: The scheme will seek opportunities across market capitalization, i.e. large caps, mid caps and
small caps.
Tax-Saving: Targeted towards investors wishing to save tax, tax-free returns and having a long-term
investment horizon. Tax benefits under Section 80C of the Income Tax Act, 1961 according to which
investment up to Rs.1.5 lakhs in ELSS is deductible from taxable income.
Close-ended: This would allow fund manager the flexibility to execute investment strategy effectively
over scheme’s tenure and help in selecting companies with good growth potential over long term growth.
Investment Strategy
Asset Allocation
Indicative allocations (% of total assets)
Instruments
Minimum Maximum
Risk Profile
High/Medium/Low
Equity and Equity
related instruments
Debt and Money
market instruments
80 100
0 20
High
Low to Medium
SBI Long Term Advantage Fund
13. Performance of Midcaps and Large caps can vary significantly over time
depending of different phases of market cycle
Past performance may or may not be sustained in future
Source: Bloomberg, Data from 01.01.2006 to 29.12.2017.
Variation in Market Performance
-80%
-60%
-40%
-20%
0%
20%
40%
60%
80%
100%
120%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
S&P BSE LargeCap S&P BSE Mid Cap
14. Multi caps have delivered consistent returns across market cycles
Mid Cap Large Cap Mid Cap Mid Cap Mid Cap Mid Cap
39% 6% 55% 7% 8% 50%
Multi Cap Multi Cap Multi Cap Multi Cap Multi Cap Multi Cap
31% 3% 37% -1% 4% 37%
Large Cap Mid Cap Large Cap Large Cap Large Cap Large Cap
27% -6% 31% -4% 3% %
Source: Bloomberg, Large Caps, Multicap and Midcaps are represented by S&P BSE Large Cap, S&P BSE 500 and S&P BSE Midcap respectively. Past
performance may or may not be sustained in future
2012 2013 2014 2015 2016 2017
Consistency makes a winner
15. Fund managers and analysts screening by market cap &
liquidity
Stock Universe - 2000
• Classify the research universe into 24-sectors
• Screen company fundamental, momentum and valuation
based on internal research
• Extensive interaction with sell-side to build valuation universe
• Using data support from StarMine, Bloomberg and
independent research agencies
Liquidity Screening ( 500 stocks )
Fundamental Analysis (300 stocks)
• Portfolio philosophy
• Qualitative criteria including industry structure, business
model, management quality, market position and operating
levers (growth and profits)
• Internal analysts recommendation : relative to benchmark
and sector
Investment Universe
Portfolio
• Convictions that navigate the mandate and research
• Analyst recommendations
• Portfolio mandate and risk metrics
• Monitor risk by using the MSCI BARRA risk tools
Investment Process : Equity
16. Fund Structure A 10 Year Close-Ended Equity Linked Saving Scheme
Investment Objective
The investment objective of the scheme is to generate capital appreciation
over a period of the years by investing predominantly in equity & equity
related instruments of companies along with income tax benefit. However,
there is can be no assurance that the investment objective of the scheme
will be achieved
Plans/Options
The scheme would have two plans viz Direct Plan & Regular Plan.
Both plans would offer Growth and Dividend options. Dividend option will
have the facility of Payout & Transfer
Minimum Application Amount Rs. 500/- and in multiples of Rs. 500 thereafter
Benchmark Index S&P BSE 500
Fund Manager Mr. R. Srinivasan
Scheme Name SBI Long Term Advantage Fund – Series V
SBI Long Term Advantage Fund
17. 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
fund units/securities. These views alone are not sufficient and should not be used for the development or
implementation of an investment strategy. It should not be construed as investment advice to any party*. All
opinions and estimates included here constitute our view as of this date and are subject to change without notice.
Neither SBI Funds Management Private Limited, nor any person connected with it, accepts any liability arising
from the use of this information. The recipient of this material should rely on their investigations and take their
own professional advice
*In the preparation of this material, SBI Funds Management Private Limited (the AMC) has used information that
is publically available/information researched in-house/ outsourced from various sources. Information gathered
and material used in this document is believed to be from reliable sources. The AMC however, does not warrant
the accuracy, reasonableness and/or completeness of any information
Disclaimer
18. SBI Funds Management Private Limited
(A joint venture between SBI and AMUNDI)
Corporate Office:
9th Floor, Crescenzo,
C-38 & 39, G Block,
Bandra Kurla Complex,
Bandra (East), Mumbai - 400 051
Tel: +91 22 6179 3000
Fax: +91 22 6742 5687/88/89/90/91
Website: www.sbimf.com
Call: 1800 425 5425
SMS: “SBIMF” to 56161
Email: customer.delight@sbimf.com
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