SBI Mutual Fund is launching a new fund offer (NFO) for SBI International Access ‐ US Equity Fund of Funds. The opening date of the NFO is March 1, 2021, and the closing date is March 15, 2021.
Investment Objective of SBI International Access ‐ US Equity Fund of Funds
The SBI International Access ‐ US Equity Fund of Funds is an open-ended fund of funds scheme that seeks to achieve long-term capital appreciation by investing in mutual funds and exchange-traded funds predominantly from the US markets.
Asset Allocation
Here is the proposed asset allocation for the scheme:
| Instruments | Indicative Allocation (% of net assets) | Risk Profile | |
| Minimum | Maximum | High/Medium/Low | |
| Units of the overseas mutual fund scheme(s) / ETFs which invest predominantly in the US markets | 95% | 100% | Medium to High |
| Money Market Instruments, Triparty repo,
Reverse Repo, units of Liquid and Money market schemes of SBI Mutual Fund |
0% | 5% | Low to Medium |
Benchmark
The SBI International Access ‐ US Equity Fund of Funds scheme has chosen the S&P 500 Index as the benchmark for the Fund after converting it into Indian rupee.
S&P 500 Index
The Standard & Poor’s 500 Index (S&P 500 Index) is a market-cap-weighted index of the largest 500 companies in the US.
Fund Details
The SBI International Access ‐ US Equity Fund of Funds is available as a Regular Plan or Direct Plan. Further, investors can choose between a Growth and Dividend Plan under Regular/Direct Plans. Also, under the Dividend Plan, investors can choose between the Dividend Payout option and the Dividend Reinvestment option.
Other Details
| Scheme Name | SBI International Access ‐ US Equity Fund of Funds |
| Type of Scheme | An open-ended fund of funds scheme investing in mutual fund schemes and exchange-traded funds that are domiciled overseas and primarily in the US markets. |
| Benchmark | S&P 500 Index (after converting into INR) |
| NFO Dates | Opening Date – March 1, 2021
Closing Date – March 15, 2021 |
| Fund Manager | Mohit Jain |
| Minimum Amount for Application in the NFO | Rs. 5,000/- and in multiples of Re.1 thereafter |
| Additional Purchase | Rs. 1,000/- and in multiples of Re. 1 thereafter |
| Minimum SIP Application Amount | Monthly – Minimum Rs.1000 & in multiples of Re. 1 thereafter for minimum six months (or) minimum Rs.500 & in multiples of Re. 1 thereafter for minimum one year |
| Minimum Redemption Amount | Rs.500/- or 1 unit or account balance, whichever is lower |
| Entry Load | Not Applicable |
| Exit Load |
|
| Plans | Each plan is available as a Regular or Direct plan. |
| Options | Growth and Dividend options (Payout and Reinvestment) |
Fund Manager(s)
Mohit Jain – Manager Overseas Investments
Mohit Jain has more than 7 years of experience in the financial services sector. He holds a B.E. in Engineering and is a CFA Level III candidate. He joined SBI Funds Management Private Limited (SBIFMPL) in May 2015 as a Credit Analyst and is currently the dedicated fund manager for overseas investments for schemes of the SBI Mutual Fund. Before joining SBIFMPL, he was working with Crisil Limited as a Research Analyst.
Other funds managed by him are:
- SBI Banking and PSU Fund
- SBI Corporate Bond Fund
- SBI Dynamic Asset Allocation Fund
- SBI Equity Hybrid Fund
- SBI Floating Rate Debt Fund
- SBI Magnum Children’s Benefit Fund
- SBI Retirement Benefit Fund (Conservative, Conservative Hybrid, and Aggressive)
What are International Fund of Funds?
International Mutual Funds were launched in India in 2007 with permission from SEBI and the RBI. These funds invest in securities around the globe and allow investors to gain exposure to foreign markets regardless of their country of origin. This also helps them diversify the country and currency-specific risk of their investment portfolio.
What is a Fund of Funds?
A mutual fund typically invests in assets like equity, bonds, money market instruments, gold, etc. However, some funds invest in other mutual funds instead of these assets. These are FoFs of Fund of Funds. An FoF can invest in any kind of mutual fund including index funds, ETFs, and international funds.
What is an International Fund of Funds?
An International Fund of Funds is an FoF scheme that invests in international mutual fund schemes.
Investment in securities market are subject to market risks, read all the related documents carefully before investing. Please read the Risk Disclosure documents carefully before investing in Equity Shares, Derivatives, Mutual fund, and/or other instruments traded on the Stock Exchanges. As investments are subject to market risks and price fluctuation risk, there is no assurance or guarantee that the investment objectives shall be achieved. NBT do not guarantee any assured returns on any investments. Past performance of securities/instruments is not indicative of their future performance.
