SBI Long Term Advantage Fund - Series I (NFO Period: Nov 01, 2014 - Jan 31, 2015) Type of Scheme : A 10 year Close - Ended Equity Linked Saving Scheme. Lock in Period : 3 Year from date of allotment. Investment Objective of the Scheme: The investment objective of the scheme is 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. However, there can be no assurance that the investment objective of the Scheme will be realized. Asset Allocation: Equities, cumulative preference shares and fully convertible debentures and bonds of companies. Min-80: Max-100 (High Risk) Money market instruments Min-0; Max-20(Low to Medium Risk) The scheme shall not invest in derivatives. The scheme shall not invest in repo in corporate debt. The scheme will not make any investment in ADR/ GDR/ Foreign Securities/ Securitized Debt. The Scheme shall not engage in stock lending. The Scheme shall not engage in short selling. Investment Strategy: The funds collected under the scheme shall be invested in equities, cumulative convertible preference shares and fully convertible debentures and bonds of companies. Investment may also be made in partly convertible issues of debentures and bonds including those issued on rights basis subject to the condition that, as far as possible, the non-convertible portion of the debentures so acquired or subscribed, shall be disinvested within a period of twelve months. SBI Tax Advantage Fund – Series III is a diversified equity fund. The fund will invest into equity stock of companies listed in India. The fund investment strategy is split into three parts; 1) Asset Allocation: The fund will invest a portion of its assets into large caps, midcaps and small caps. The proportion of the exposure to each capitalisation will depend on the following factors: Liquidity of stocks under each capitalisation range (e.g. Large caps are more liquid than midcaps and midcaps are more liquid than small caps) Trading volumes Market scenario -It is observed in the past that, in falling markets, large caps fall lesser (in % terms) than midcaps & small caps. It is also observed that, in rising markets, midcaps outperform (in % terms) large caps 2) Top down approach: The top down approach helps identifying sectors where the portfolio should take exposure. The portion of exposure to each sector (vis-a-vis benchmark) depends on the following parameters: Macroeconomic view Policy changes Global trends Relative valuation of each sectors vis-a-vis other sector Risk premium (Risk-reward ratio) 3) Bottom-up approach: The bottom-up approach helps identifying stocks where the portfolio should take exposure. The portion of exposure to each stock (vis-a-vis benchmark and within the sector) depends on the following parameters: Relative valuation of each stock vis-a-vis other stock within the sector or broader market Management quality Business fundamentals Risks associated with business Ratios (PE, PB etc) Benchmark S & P BSE 500 Index Minimum Application Amount in (Rs.) Rs. 5,00/- and in multiples of Re. 500 thereafter SBI Long Term Advantage Fund - Series This product is suitable for investors who are seeking*: Capital appreciation over a period of 10 years Investment in equity and equity related instruments of companies along with income tax benefit u/s 80C of the Income Tax Act, 1961.
Posted on: Mon, 08 Dec 2014 15:49:46 +0000
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