The Hindu Business Line : SBI Mutual to launch emerging business fund

SBI Magnum Sector Funds Umbrella will soon have its fifth scheme - an equity product that will invest in what SBI MF feels are emerging businesses. This will add to the existing schemes that are separately dedicated to technology, pharmaceuticals and FMCG.

`Emerging businesses', in SBI MF's parlance, will relate to those that have the potential to grow out of export and outsourcing opportunities, global competitiveness and strengths developed in the domestic market. This will, incidentally, be the first launch since SBI MF announced its tie-up with Societe Generale, a deal that will provide SocGen with 37 per cent of the asset management company for a consideration in excess of $35 million.

An investment horizon of roughly two years is said to be compatible with the nature of the scheme. Mr Sandip Sabharwal, who has been named fund manager, will try to identify stocks that belong to the `emerging' sectors, which are expected to have enough upside potential.

A press release issued by SBI MF has referred to the recent performance of Contra Fund, a diversified equity play, which also operates under the Magnum Sector Fund Umbrella. This scheme invests in value stocks.