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SBI Mutual Fund has managed to mop-up about ₹8,200 crore through its new fund offer of Multi-Cap Fund. This is the highest ever fund raising in the multi-cap category.
The investment in the NFO would have been much higher if not for the market disruption due to the Russian invasion of Ukraine. Usually, high networth investors (HNIs) decide to invest in the last two or three days before the NFO closes, however, the sudden market crash post the Russian-Ukraine war hit the investor sentiment hard, said an analyst.
Interestingly, the average ticket size was ₹2.5 lakh during the NFO and the fund house added 1.16 lakh new PAN. This is the second highest mop-up by the fund house in an NFO. Last August, the SBI MF had raised a record ₹14,551 crore in its balanced advantage fund.
Taking advantage of dips
DP Singh, Chief Business Officer, SBI Mutual Fund, told BusinessLine that the fund house will start deploying the funds as soon as possible to take advantage of the recent fall in the market and build a strong portfolio for future growth. Investors in the multi-cap fund will stand to benefit once the things start settling down in a matter of 2-3 weeks, he added.
SBI Multicap Fund, an open-ended equity scheme will be investing in a mix of best ideas across large, mid and small cap companies identified through a robust research process. The NFO was open for subscription between February 14 and 28.
SEBI had recently tweaked the regulations of multi-cap schemes and made it mandatory for them to invest at least 25 per cent of the corpus in large-, mid-, and small-cap stocks each. Earlier, multi-cap funds were free to invest across the market cap depending on the fund manager’s outlook.
‘Investors needn’t worry’
Long term investors should not be worried too much about the recent happening in the market as the fundamentals of the India growth story is still strong with right support from government policies, said Singh. Investors should use the fall in the market to invest in fundamentally strong companies which will benefit from India’s economic growth, he added.
SBI MF will focus on attracting investment in existing schemes and educate investors on the importance of asset allocation, he said.
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