The Economic Times
English EditionEnglish Editionहिन्दीગુજરાતી
| E-Paper
Search
+

    SBI Equity Hybrid Fund: Fund review

    Synopsis

    Among balanced schemes, SBI Equity Hybrid is the top performer thanks to its conservative approach.

    Getty Images
    The markets have given a thumbs-up to the recent favourable change in the corporate tax rate. But for a large number of market veterans and savvy investors a key concern still remains. Would it revive demand across sectors which can improve sentiment in markets materially? There is no clear answer to this.

    Unfavourable developments — both globally and domestically — have made it difficult to pinpoint the exact reason for the slowdown in demand. After the pace of Chinese consumption slowed down, the US-China tariff war and high crude prices emerged as global worries. This together with lack of visible signs of earnings’ growth closer home complicates the whole strategy of investing in safe and profitable asset classes.

    To deal with these factors, it is important to follow the conservative strategy of investing in balanced schemes — the idea of seeking out best bets in both equities and debt markets.

    Things You should consider
    • Annualized Return
      for 3 year: 4.02%
    • Suggested Investment
      Horizon: >3 years
    • Time taken to double
      money: 4.2 Years
    Things You should consider
    • Annualized Return
      for 3 year: 1.16%
    • Suggested Investment
      Horizon: >3 years
    • Time taken to double
      money: 4.1 Years
    Among balanced schemes, SBI Equity Hybrid is the top performer thanks to its conservative approach. The scheme’s fund managers Dinesh Ahuja and R Srinivasan have constructed a large cap-focused portfolio with safe government bonds and AAA-rated instruments. In the past five-year and ten-year periods, it has given 11 per cent and 12 per cent returns while its peers have given returns of 8.4 per cent and 10.5 per cent in the same period, respectively.

    Portfolio change (Past 6 months)

    New Entrants Complete Exits Increase in Allocation
    Aani Portz and SEZ Muthoot Finance HDFC
    Alkem Laboratories ICICi Securities Hero MotoCorp
    Power Grid Corporation Maruti Suzuki India Shree Cement

    Returns (in %)
    Period CAGR Return SIP CAGR Return Aggressive Hybrid Fund-Average CAGR Return (%)
    1 Year 12.14 7.45 4.46
    3 Year 9.66 8.29 6.12
    5 Year 11.06 9.62 7.78

    Returns peer comparison (in %)
    Scheme Name 1-Year 3-Year 5-Year
    Canara Robeco Equity Hybrid Fund 8.25 8.60 10.18
    DSP Equity & Bond fund 13.35 8.08 11.06
    ICICI Prudential Equity & Debt Fund 2.47 7.38 9.59
    Source: Accord Fintech, Complied by ETIG Database

    Expert take
    Rupesh Bhansali, Head, Mutual Funds, GEPL Capital
    This scheme is a distinguished performer. Close to 87 per cent of the scheme's investments are in large sized companies and high quality debt instruments. It is the scheme's AUM size which provides it a strong edge over peers. Conservative investors who expect stability or moderately high returns can invest in it with investment period of three to five years.

    Also Read

    The Economic Times