SBI Magnum Balanced Fund

Introduction

WHAT IS BALANCED FUND?

CHARACTERISTICS OF EQUITY & DEBT

SBI MAGNUM BALANCED FUND

ASSET ALLOCATION

PERFORMANCE

SYNOPSIS

PORTFOLIO HOLDINGS

PERFORMANCE OF OTHER SCHEMES MANAGED BY FUND MANAGERS

FUND MANAGER BIOGRAPHIES

ABOUT SBI FM

DISCLAIMER

A balanced fund aims to balance the risk & return of the portfolio byinvesting in more than one asset class. Generally these funds haveallocation to asset classes such as equity & debt. Equity & debt assetsclasses in the fund endeavour to:

Equity

• To provide capital appreciation

• To generate returns above inflation

Debt

• To provide stability in the portfolio

• To generate consistent income from coupons

What is balanced fund?

Balanced fund aims to strike a balance between growth & stability

Characteristics of Equity & Debt

• Equity returns can be volatile. There are can be period of up-markets

and down markets

• Debt returns are less volatile and stable over long horizon

• A balanced portfolio of debt and equity derives stability from its debt

component and growth opportunities from the equity component

Data as on 31.10.2017 Source: MFI, internal calculationPast performance may or may not be sustained in the future.

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Crisil Composite Bond Fund Index Crisil Balanced Fund Index Nifty

Characteristics of Equity & Debt

• Volatility of the debt asset class is relative low in comparison to the

equity asset class across different investment horizons

• Low volatility comes with low returns

• A balanced portfolio of debt and equity can reduce the volatility while

increasing the expected return

Data as on 31.10.2017 Source: MFI, internal calculation

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Crisil Composite Bond Fund Index Crisil Balanced Fund Index Nifty

This product is suitable for investors who are

seeking*:

Long term investment

Investment in a mix of debt and equity through

stocks of high growth companies and relatively safe

portfolio of debt to provide both long term capital

appreciation and liquidity.

*Investors should consult their financial advisers if in

doubt about whether the product is suitable for them.

INTRODUCING

Riskometer

Date of Inception31/12/1995

BenchmarkCrisil Balanced Fund –

Aggressive Index

Fund ManagerMr. R. Srinivasan-EquityMr. Dinesh Ahuja - Debt

Investment Plans

Direct Plan&

Regular Plan

Investment Options

Growth&

Dividend(Payout, Re-investment &

Transfer Facility)

FUND FEATURES

Investment Objective

To provide investors long term capital appreciation along with the liquidity of an open-endedscheme by investing in a mix of debt and equity. The scheme will invest in a diversifiedportfolio of equities of high growth companies and balance the risk through investing the restin a relatively safe portfolio of debt.

Investment Amount

Minimum investmentsRs. 1000 & in multiples of

Re. 1

Additional investmentsRs. 1000 & in multiples of

Re. 1

SIPRs. 100 / month – 60 monthsRs. 500 / month – 12 monthsRs. 1000 / month – 6 months

Rs. 1500 / quarter – 4 quarters

SBI Magnum Balanced Fund

#Source: CRISIL Fund Analyser*Portfolio Turnover = lower of total sale or total purchasefor the last 12 months upon Avg. AUM of trailing twelvemonths.Risk Free rate : FBIL OVERNIGHT MIBOR RATE (6.00% ason 31/October/2017). Basis for Ratio Calculation : 3 yearmonthly data

QUANTITATIVE ANALYSIS

Standard deviation# 9.81%

Beta# 0.94

Sharpe ratio# 0.69

Portfolio Turnover* 0.16

QUANT DATA OF DEBT PORTION

Yield to Maturity 7.18%

Modified Duration 4.25

Average Maturity 6.60 Years

Fund Philosophy

• Invests in a mix of equity & debtsecurities

• Exposure in equity is atleast 50%and exposure in debt & moneymarket securities can be upto 50%

• Equity portion is invested in adiversified portfolio of large & midcaps

• Debt portion is invested ininvestment grade securities withactive duration management

SBI Magnum Balanced Fund

SBI Magnum Balanced Fund: Asset allocation

Allocation between equity and debt & money market is stable

Equity and Debt & Money Market Allocation

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Equity Debt & Money market

In last two years Mid & Small cap indices has outperformed large cap index

In last two years average Mid & Small cap exposure out of total equity exposure was 48.35%.

This was one of the factor for outperformance of the fund in last two years

SBI Magnum Balanced Fund: Active management within Equity asset class

Equity portion into market cap exposureMovement of major indices

Average has been calculated by taking month end exposure for last 24 months

Data as on 31.10.2017 Source: NSE

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Large Cap Mid Cap Small Cap

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7Nifty 50 Nifty Free Float Midcap 100

Nifty Free Float Smallcap 100

SBI Magnum Balanced Fund: Active management within Debt asset class

Debt portion is managed dynamically based on interest rate view, inflation & credit risk

In last two years, yields have moved in a trending way

Dynamic allocation between of debt & money market portion into debt & cash has helped fund to outperform in last two years

Movement of major government securities yields Debt & money market portion into debt & cash exposure

Data as on 31.10.2017 Source: Bloomberg

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91 Day 1 Year 10 Year

Portfolio Holdings

Top 10 Holdings

Stock/Bond Name % of Total AUM

GOVERNMENT OF INDIA11.66

CCIL-CLEARING CORPORATION OF INDIA LTD (CBLO) 8.21

HDFC BANK LTD.6.79

BHARTI AIRTEL LTD.4.47

STATE BANK OF INDIA4.40

ICICI BANK LTD.3.42

KOTAK MAHINDRA BANK LTD.3.25

SUNDARAM CLAYTON LTD.2.47

SUNDARAM FINANCE LTD.2.47

DIVI'S LABORATORIES LTD.2.33

Data as on 31.10.2017

27.78

6.18

5.49

4.90

4.79

3.98

3.88

3.83

3.03

2.25

FINANCIAL SERVICES

SERVICES

PHARMA

TELECOM

INDUSTRIAL…

IT

ENERGY

CONSUMER GOODS

AUTOMOBILE

METALS

Top 10 Holdings (Sector)

Synopsis

A balanced allocation of equity & debt

Backed by a robust investment management process

Endeavour to bring both - Growth from equity and Stability from debt

Active management within each asset class

The equity portion is dynamically managed based on a bottom up approach.

The debt portion switches actively among government debt, corporate debt and money market instruments based on interest rate view, inflation & credit risk.

• Mr. Navneet Munot - Chief Investment Officer

Navneet joined SBIFM as Chief Investment Officer in 2008. In his role Navneet is responsible for

overseeing investments across asset classes worth over $29.10 billion. His prior stint was with Morgan

Stanley Investment Management as Executive Director and head- multi strategy boutique. Prior to that,

Navneet was the Chief Investment Officer - Fixed Income and Hybrid Funds at Birla Sun Life Asset

Management Company Ltd. Navneet had been associated with the financial services business of the Birla

group for 14 years and worked in various areas such as fixed income, equities and foreign exchange.

Navneet holds masters in accountancy and business statistics from the University of Ajmer and is a

Chartered Accountant from ICAI. He is a charter holder of the CFA Institute USA and CAIA Institute USA.

He is also an FRM charter holder of Global Association of Risk professionals (GARP).

Mr. R. Srinivasan – Fund Manager Equity portion

Mr. Srinivasan joined SBI Funds Management as a Senior Fund Manager in May 2009, now heads

equities and also directly manages a few funds. He has an experience of over 20 years in capital

markets having worked with FCH, Principal PNB, Oppenheimer & Co, Indosuez WI Carr and Motilal

Oswal, among others. Srinivasan is a post graduate in commerce and has done his MFM from the

University of Bombay.

Mr. Dinesh Ahuja - Fund Manager Debt portion

Dinesh joined SBI Funds Management Pvt. Ltd. as a fixed income portfolio manager in 2010. Prior to

joining SBI Funds Management Pvt. Ltd. Dinesh was a portfolio manager at L&T Asset Management and

Reliance Group for four years. Dinesh started his career in 1998 as a fixed income dealer on the sell

side. Thereafter he worked in leading broking outfits for eight years before moving on the buy side in

2006. Dinesh is a commerce graduate and has completed his Masters in Management Studies from

Mumbai University

Biographies

15

SBI Funds Management Private Limited

*Source: SBI Analyst Presentation as on end December2016. USD 1 = INR 67.95

# Source : Amundi website as on end December 2016

63% 37%

India’s premier and largest bank with over 200 years

experience (Estd: 1806)

Asset base of USD 465bn*

Pan-India network of ~23,737 branches and

59,108 ATM’s as at end of December 2016

Servicing over 299 million customers

Only Indian bank in Fortune 500 list; ranked among

the top 100 banks in the world

Global leader in asset management

Backed by Credit Agricole and listed in Euronext

Paris

More than 2,000 institutional clients and distributors

in 30 countries

Over 100 million retail clients via its partner

networks

€1,083 billion AuM as at end of December 2016

Ranking N° 1 in Europe, Top 10 worldwide #

SBI FM: Strengths Transforms To Experience

Established in 1987: A leading asset manager in India

Broad Investor

Base

AUM INR 1,68,816

Cr

Wide Distribution

NetworkExperienced Investment

Team

ExtensiveProductRange

INR 188,030 Crores* AAUM in mutual funds

Asset management across mutual funds,segregated managed accounts, domesticadvisory & offshore advisory business

Multiple asset classes ranging from equitiesand debt, money market to ETFs andstructured funds

Investment team of 35 professionals withstrong track record

Broad customer base with ~ 5.10 million foliosrelated to individual, corporate and institutionalinvestors

* Quarterly average September 2017

Disclaimer

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 fundunits/securities. These views alone are not sufficient and should not be used for the development or implementation ofan investment strategy. It should not be construed as investment advice to any party. All opinions and estimatesincluded here constitute our view as of this date and are subject to change without notice. Neither SBI FundsManagement Private Limited, nor any person connected with it, accepts any liability arising from the use of thisinformation. The recipient of this material should rely on their investigations and take their own professional advice