SBI Equity Hybrid Fund: Fund review
Among balanced schemes, SBI Equity Hybrid is one of the most stable performers in the long term.
Given this situation, investments in hybrid or balanced schemes which offer the best of both worlds — equities and debt— with at least a five-year time horizon must not be ruled out. When equities are volatile, debt markets provide stability to the portfolio’s returns.
Among balanced schemes, SBI Equity Hybrid is one of the most stable performers in the long term. In the past three- and five-year periods, the scheme has given 8.2 per cent and 10.1 per cent returns, respectively, while its peers in the category have given 5.4 per cent and 7.3 per cent returns, respectively, in the same period.
As regards the scheme’s debt investments, fund managers Dinesh Ahuja and R Srinivasan have given special attentions to quality. The scheme is heavily invested in government and AAA-rated securities which, moderately, offer a certain amount of stability to the portfolio.
With respect to its benchmark index, the scheme has higher exposure to debt securities than its benchmark index. This aggressive exposure shows the conviction of the fund managers. Its equity investments are also spread across good dividend-paying, superior asset-possessing multi cap growth stocks.
Portfolio Change (Past 6 months)
|New Entrants||Complete Exits||Increase in Allocation|
|Chalet Hotels||ICICI Securities||Axis Bank|
|Emami||Maruti Suzuki India||HDFC|
|Hero MotoCorp||NLC India||Relaxo Footwears|
Returns (in %)
|Period||CAGR Return||SIP CAGR Return||Aggressive Hybrid Fund - AVG CAGR (%)|
Returns Peer Comparison (in %)
|Canara Robeco Equity Hybrid Fund||-2.77||7.55||9.31|
|DSP Equity & Bond Fund||-3.67||6.37||9.85|
|ICICI Prudential Equity & Debt Fund||-3.22||6.94||9.29|
Kaustubh Belapurkar, Director Fund Research, Morningstar India
SBI Equity Hybrid Fund is a well-managed balanced fund. The equity portion is managed as a well-diversified multi-cap portfolio of high growth stocks with a predominant large cap blas. R Srinivasan, who manages the equity portion, is an experienced manager. The fund is suitable for risk averse investors with at least 3-5 years investment horizon.