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 by investing in more than one asset class. Generally these funds have allocation to asset classes such as equity & debt. Equity & debt assets classes 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 componentData as on 29.02.2016 Source: MFI, internal calculationPast performance may or may not be sustained in the future.

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 returnData as on 29.02.2016 Source: MFI, internal calculation

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

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-ended scheme by investing in a mix of debt and equity. The scheme will invest in a diversified portfolio of equities of high growth companies and balance the risk through investing the rest in a relatively safe portfolio of debt.

Investment Amount

Minimum investmentsRs. 5000 & 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 purchase for the last 12 months upon Avg. AUM of trailing twelve months.Risk Free rate : FBIL OVERNIGHT MIBOR RATE (6.96% as on 29/Feb/2016). Basis for Ratio Calculation : 3 year monthly data

QUANTITATIVE ANALYSIS

Standard deviation# 11.03%

Beta# 0.94

Sharpe ratio# 0.82

Portfolio Turnover* 0.28

Fund Philosophy

• Invests in a mix of equity & debt securities

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

• Equity portion is invested in a diversified portfolio of large & mid caps

• Debt portion is invested in investment grade securities with active 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

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 53.45%.

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

For performance please refer slide no. 13. Average has been calculated by taking month end exposure for last 24 months

Data as on 29.02.2016 Source: NSE

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 yieldsDebt & money market portion into debt & cash exposure

Data as on 29.02.2016 Source: Bloomberg

For performance please refer slide no. 13.

Portfolio Holdings

STOCK NAME % OF AUM

INFOSYS LTD.

5.28

HDFC BANK LTD.

3.90

STATE BANK OF INDIA

3.18 PROCTER & GAMBLE HYGIENE AND HEALTH CARE LTD.

2.97

SJVN LTD.

2.90

HCL TECHNOLOGIES LTD.

2.56

ICICI BANK LTD.

2.34

THE INDIAN HOTELS CO. LTD.

2.22

BAJAJ FINANCE LTD.

2.21

COAL INDIA LTD.

2.14

TOTAL 29.70

Data as on Feb 29, 2016

Performance

Past performance may or may not be sustained in future. Returns (in %) other than since inception are absolute, calculated for dividend option and in INR are point-to-point (PTP) returns calculated on a standard investment of 10,000/-. It has been assumed that dividends declared under the scheme have been reinvested at the then prevailing NAV. Growth option was introduced on 19/01/2005. Additional benchmark as prescribed by SEBI for long-term equity schemes is used for comparison purposes. Source: MFI Explorer. Data as on 31/12/2015.

31-Dec-2014 to

31-Dec-201531-Dec-2013 To

31-Dec-201431-Dec-2012 To

31-Dec-2013 Since Inception

Absolute Returns (%) CAGR Returns (%) PTP Returns (INR)

SBI Magnum Balanced Fund 7.36 43.24 11.86 16.56 2,22,225

Crisil Balanced Fund Index (Scheme Benchmark) 0.48 25.34 6.05 N.A. N.A.

S&P BSE SENSEX (Additional Benchmark) -5.03 29.89 8.98 10.31 72,895

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.

Performance of Schemes Managed by R. Srinivasan

Performance of Schemes Managed by R. Srinivasan

Performance of schemes managed by Mr. Dinesh Ahuja

Performance of schemes managed by Mr. Dinesh Ahuja

• Mr. Navneet Munot - Chief Investment Officer Mr. Navneet Munot joined SBI Funds Management Pvt. Ltd. as Chief Investment Officer in Dec. 2008. Prior

to SBIFM he was the Head of Multi Strategies fund at Morgan Stanley Investment Management before which he worked as the Chief Investment Officer (Fixed Income and Hybrid Funds) of Birla Sun Life Asset Management Company Ltd. Navneet has been associated with the financial services business of the Birla group for over 13 years and worked in various areas such as fixed income, equities and foreign exchange. His articles on matters related to financial markets have widely been published. Navneet holds a Masters in Commerce and is also a rank holder Chartered Accountant. He is a charter holder of Chartered Financial Analyst Institute, US and Chartered Alternative Analyst Institute, US. He has also done Financial Risk Management, FRM from 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 portionDinesh 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

21

63% 37%

India’s premier and largest bank with over

200 years experience (Estd: 1806)

Asset base of USD 399 bn*

Pan-India network of ~22,972 branches and

~ 50,000 ATM’s as at end of December

2014

Servicing over 256 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 Société Générale

More than 2,000 institutional clients and distributors

in 30 countries

Over 100 million retail clients via its partner

networks

€952 bn AuM as at end of March 2015

*Source: SBI Analyst Presentation as on end December 2014# Source : Amundi website as on end March 2015

SBI Funds Management Private Limited

SBI FM: Strengths Transforms To Experience

Established in 1987: A leading asset manager in India

22

Broad Investor

Base AUM

INR 1,00,055 Cr

Wide Distribution

NetworkExperienced Investment

TeamExtensiveProductRange

INR 1,00,055 Crores* AAUM in mutual funds

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

Multiple asset classes ranging from equities and debt, money market to ETFs and structured funds

Investment team of 34 professionals with strong track record

Broad customer base with over 40 lakh folios of individual, corporate and institutional investors

* Quarterly average December, 2015

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 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