SBI Emerging Business Fund: A consistent player

Sharekhan in its latest report reviews - SBI Emerging Business Fund, an open ended equity scheme. The scheme focuses on the theme of emerging businesses and invests in companies that are considered emergent or are export-oriented or have outsourcing opportunities or are globally competitive in order to participate in the growth potential of Indian businesses.

With about ten years of experience, the fund has been a consistent outperformer in comparison with both the benchmark index, BSE 500, and the category average. Despite the volatility and uncertainties in the market, the fund performed better than its peers, giving returns of -0.8% over one year as against that of -0.1% and -6.4% given by the benchmark index and the category average respectively in the same period. Over a longer time horizon of three years, the fund has grown at 6.6% compounded annual growth rate while the BSE Mid-cap Index and the category average have grown at -10.8% and -3.8% respectively. In the recent months the fund has garnered returns of -17.1%, lower than the 10.7% returns posted by the benchmark index and the-16.4% returns from the mid-cap funds category average. The fund currently has about 27 stocks in its portfolio. It has nearly 94.5% of its net assets exposed to equities while the rest is exposed to the other money-market instruments. The top ten stocks form about 56.7% of the portfolio. The fund has invested nearly 8% of its capital in the automobile and auto ancillaries sector followed by the banking, and food & food processing and beverages sectors with 7.8% and 6.9% allocations respectively.

- Sharekhan
(Sharekhan is India's leading online retail broking house)

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