Sbi Emerging Businesses Fund

Product Labeling This product is suitable for investors Riskometer who are seeking*:  Long term capital appreciation.  Investments in in companies that are considered emergent and have export orientation/ outsourcing opportunities or globally competitive to participate in growth potential of Indian businesses potential to provide investors maximum growth opportunity. *Investors should consult their financial advisers if in doubt about whether the product is suitable for them. Capital Agnostic: Flexible

Annual Returns 140% 120% 100% 80% 60% 40% 20% 0% -20% -40% -60% 2009 2010 2011 2012 2013 2014 2015 2016 2017

S&P BSE Large Cap S&P BSE Mid Cap S&P BSE Small Cap

• Large, mid & small caps usually follow the same market trend • However, during times of volatility, large caps have comparatively been more consistent; whereas, when markets rally, mid & small caps have taken the lead

SBI Emerging Businesses Fund is a market capitalization agnostic fund; it may invest into large, mid and/or small cap stocks in any proportion based on the market conditions making the most of different market phases.

Source: Bloomberg. As on date: May 31, 2017. High Conviction: Focused Approach

High Conviction • The portfolio invests in 20-30 stocks based on return expectations

Concentrated • The current top 10 holdings amount to 62.25%

• Since there are no sector holding limits, the portfolio is more flexible thereby Flexibility allowing the fund manager to hold the sectors that the fund manager believes are the best suited for the portfolio Bottom-up

Bottom Up Strategy

Sell - Side

Quantitative Tools Primary Research

Valuations Management Interaction

Stress Testing Earnings Model

 The fund has the flexibility to invest across market caps. However, to maintain liquidity on a portfolio basis, we maintain a meaningful proportion in large caps

Bottom Up: Stock selection is from a bottom up perspective which uses a combination of factors including business model, profitability, growth, management and valuations Five Pillars of Bottom-up Stock Picking

Business Model: Valuations: Management: Growth: Cyclicality, Returns on Capital: Competitive Edge, Absolute valuations; Integrity, Capability Scalability, Past record, Market share, Brand relative to historic Consistency Sustainability sustainable drivers Franchise valuations & peers

A combination of the above factors are considered for stock picking under the bottom-up approach for mid & small cap stocks SBI Emerging Businesses Fund

Current Strategy An actively managed, diversified equity portfolio, currently skewed towards mid and small caps given the sheer size of the population available in this space and the price-value arbitrage due to lower coverage

The fund has no sector holding limits & may invest in any sectors as per the market view.

Since liquidity risks are technically higher and investment is made from a 3-year perspective. To offset this liquidity risk, between one-fourth to one-fifth of the portfolio is into pure large caps (including cash, which has an upper ceiling of 10%)

Quantitative Data Ratio

Standard Deviation 12.69%

Beta 0.88

Sharpe Ratio 0.93

Expense Ratio (Regular Plan) 1.97%

Expense Ratio (Direct Plan) 1.14%

Source: CRISIL Fund Analyser Risk Free rate : FBIL Overnight Mumbai Interbank Outright Rate 6.25% as on 31/May/2017 Basis for Ration Calculation : 3 Years Daily Data Points Fund Details

Asset Allocation Sector Exposure (%)

Cash AUTOMOBILE 2.73 4% CHEMICALS 7.90 Small Cap Large Cap 18% 29% PHARMA 9.84

INDUSTRIAL MANUFACTURING 13.44

Mid Cap SERVICES 16.25 49%

CONSUMER GOODS 18.87

FINANCIAL SERVICES 27.25

Higher concentration on Financial Services, Currently portfolio skewed towards mid cap stocks Consumer Goods and Services

Data as on 31.05.2017 Funds Details

Top 10 Holdings Dividend History

% of Total Stock Name NAV AUM Dividend (on the day of Record Date PROCTER & GAMBLE HYGIENE AND HEALTH CARE (in Rs./ Unit) declaration of 9.60 LTD. dividend) HDFC BANK LTD. 8.79 07-Apr-16 2.00 20.1119 (Regular Plan) SOLAR INDUSTRIES INDIA LTD. 7.90 07-Apr-16 2.50 27.4503 (Direct Plan) GRUH FINANCE LTD. 6.59 28-Nov-14 2.70 21.2616 ELGI EQUIPMENTS LTD. 5.86 (Regular Plan) 26-Apr-13 2.50 15.3680 THE GREAT EASTERN SHIPPING COMPANY LTD. 5.70 (Regular Plan)

DIVI'S LABORATORIES LTD. 5.32 30-Mar-12 2.50 14.37

KOTAK MAHINDRA BANK LTD. 5.19 30-Jul-09 2.50 11.47

3M INDIA LTD. 3.72 28-Mar-08 2.50 18.14

HAWKINS COOKERS LTD. 3.60 31-Oct-05 5.10 17.74

Face Value: Rs. 10/- Top 10 stocks comprise 62.25% of the fund Past performance may or may not be sustained in future.

Past performance may not be sustained in the future. Pursuant to payment of dividend, the NAV of Dividend option of scheme/plan would fall to the extent of payout and statutory levy, if applicable.

Data as on 31.05.2017 Synopsis

High Conviction portfolio, Market Capitalization concentrated portfolio with no agnostic, may invest into sector bias Large, Mid or Small caps

MAGNUM SECTOR FUNDS UMBRELLA - EMERGING BUSINESSES FUND

Bottom -up stock picking The scheme is ideal for investors who approach for Mid & Small Caps would like to invest for long-term capital appreciation Performance

40 SBI Emerging Businesses Fund - Reg Plan - 30 Growth Scheme Benchmark: - S&P BSE 500 20

10 Additional Benchmark: - S&P BSE Sensex

0 31/03/2016 to 31/03/2015 to 31/03/2014 to Since inception -10 31/03/2017 31/03/2016 31/03/2015 -20

31/03/2016 to 31/03/2015 to 31/03/2014 to Since Inception 30/03/2017 31/03/2016 31/03/2015

CAGR PTP Returns Absolute Returns (%) Returns (INR) (%) SBI Emerging Businesses Fund 19.20 -1.44 53.78 20.83 107,296

S&P BSE 500 Index (Scheme Benchmark) 24.02 -7.82 33.19 14.77 56,266

S&P BSE Sensex (Additional Benchmark) 16.88 -9.36 24.89 14.27 53,263

Past performance may or may not be sustained in future. Returns (in %) other than since inception are absolute, calculated for growth option and in INR are point-to-point (PTP) returns calculated on a standard investment of 10,000/-. Additional benchmark as prescribed by SEBI for equity schemes is used for comparison purposes. Performance calculated for Regular Plan. Performance of Schemes Managed by R. Srinivasan

31/03/2016 31/03/2015 31/03/2014 31/03/2016 31/03/2015 31/03/2014 to to to Since Inception to to to Since Inception 30/03/2017 31/03/2016 31/03/2015 30/03/2017 31/03/2016 31/03/2015 CAGR PTP CAGR PTP Absolute Returns (%) Returns Returns Absolute Returns (%) Returns Returns (%) (INR) (%) (INR) SBI Magnum SBI Magnum Equity Fund 18.17 -3.49 39.76 14.75 370,937 Global Fund 15.23 -6.19 66.01 14.90 228,118 Nifty 50 S&P BSE Midcap (Scheme 18.55 -8.86 26.65 13.65 287,623 Index (Scheme 35.14 -3.34 51.11 N.A. N.A. Benchmark) Benchmark) S&P BSE Sensex S&P BSE Sensex (Additional 16.88 -9.36 24.89 13.78 296,424 (Additional 16.88 -9.36 24.89 8.97 69,191 Benchmark) Benchmark)

Past performance may or may not be sustained in future. Returns Past performance may or may not be sustained in future. Returns (in %) other than since inception are absolute, calculated for dividend (in %) other than since inception are absolute, calculated for dividend option and in INR are point-to-point (PTP) returns calculated on a option and in INR are point-to-point (PTP) returns calculated on a standard investment of 10,000/-. It is assumed that dividends declared standard investment of 10,000/-. It is assumed that dividends declared under the scheme have been reinvested at the then prevailing NAV. under the scheme have been reinvested at the then prevailing NAV. Growth option introduced on 27/11/2006. Additional benchmark as Growth option introduced on 27/06/2005. Additional benchmark as prescribed by SEBI for equity schemes is used for comparison purposes. prescribed by SEBI for long-term equity schemes is used for comparison Performance calculated for Regular Plan Performance of dividend plan for purposes. Performance calculated for Regular Plan. Performance of investor would be net of dividend distribution tax as applicable. dividend plan for investor would be net of dividend distribution tax as Performance calculated for Regular Plan applicable. 31/03/2016 to 31/03/2015 to 31/03/2014 to 30/03/2017 31/03/2016 31/03/2015 Since Inception CAGR Absolute Returns (%) Returns PTP Returns (INR) (%) SBI Contra Fund 19.58 -7.10 45.24 19.96 252,931 S&P BSE 100 Index (Scheme Benchmark) 21.17 -8.96 28.32 13.05 88,283 S&P BSE Sensex (Additional Benchmark) 16.88 -9.36 24.89 11.48 68,783 Past performance may or may not be sustained in future. Returns (in %) other than since inception are absolute, calculated for dividend option and in INR are point-to-point (PTP) returns calculated on a standard investment of 10,000/-. It is assumed that dividends declared under the scheme have been reinvested at the then prevailing NAV. Growth option introduced on 06/05/2005. Additional benchmark as prescribed by SEBI for equity schemes is used for comparison purposes. Performance of dividend plan for investor would be net of dividend distribution tax as applicable. Performance calculated for Regular Plan

Performance of Schemes Managed by R. Srinivasan

31/03/2016 to 31/03/2015 to 31/03/2014 to 30/03/2017 31/03/2016 31/03/2015 Since Inception CAGR Absolute Returns (%) Returns PTP Returns (INR) (%) SBI Small and Midcap Fund – Growth 30.68 8.66 89.90 20.46 40,861 S&P BSE Small Cap Index (Scheme Benchmark) 36.92 -3.20 53.99 9.67 20,093 S&P BSE Sensex (Additional Benchmark) 16.88 -9.36 24.89 8.32 18,303

Performance of Scheme Managed by R. Srinivasan & Dinesh Ahuja

31/03/2016 to 31/03/2015 to 31/03/2014 to 30/03/2017 31/03/2016 31/03/2015 Since Inception CAGR Absolute Returns (%) Returns PTP Returns (INR) (%) SBI Magnum Balanced Fund – Growth 15.26 -0.28 43.64 16.16 250,088 Crisil Balanced Fund Index (Scheme Benchmark) 16.10 -2.90 22.53 N.A. N.A. S&P BSE Sensex (Additional Benchmark) 16.88 -9.36 24.89 10.33 82,672

Past performance may or may not be sustained in future. Returns (in %) other than since inception are absolute, calculated for dividend option and in INR are point-to-point (PTP) returns calculated on a standard investment of 10,000/-. It is assumed that dividends declared under the scheme have been reinvested at the then prevailing NAV. Growth option introduced on 25/05/2005. Additional benchmark as prescribed by SEBI for equity schemes is used for comparison purposes. Performance calculated for Regular Plan Performance of dividend plan for investor would be net of dividend distribution tax as applicable. Performance calculated for Regular Plan Performance of Schemes Managed by R. Srinivasan

NAV of the schemes Managed by the Fund Manager

Scheme Name 31/03/2017 31/03/2016 31/03/2015 31/03/2014

SBI Emerging Businesses Fund - Growth 107.2962 90.0162 91.3274 59.3896

SBI Magnum Equity Fund - Growth 86.0038 72.7772 75.4111 53.9569

SBI Magnum Global Fund 94 - Growth 145.9724 126.6779 135.0365 81.3419

SBI Contra Fund - Growth 99.9558 83.5901 89.9794 61.9512

SBI Small & Midcap Fund - Growth 40.8611 31.268 28.777 15.1537

SBI Magnum Balanced Fund - Growth 109.1553 94.7017 94.9637 66.1133 Biographies

• Mr. Navneet Munot

Navneet joined SBIFM as Chief Investment Officer in 2008. In his role Navneet is responsible for overseeing investments across asset classes worth over $29.10 billion. His prior stint was with Morgan Stanley Investment Management as Executive Director and head- multi strategy boutique. Prior to that, Navneet was the Chief Investment Officer - Fixed Income and Hybrid Funds at Birla Sun Life Asset Management Company Ltd. Navneet had been associated with the financial services business of the Birla group for 14 years and worked in various areas such as fixed income, equities and foreign exchange. Navneet holds masters in accountancy and business statistics from the University of Ajmer and is a Chartered Accountant from ICAI. He is a charter holder of the CFA Institute USA and CAIA Institute USA. He is also an FRM charter holder of Global Association of Risk professionals (GARP).

• Mr. R. Srinivasan

Mr. Srinivasan joined SBI Funds Management as a Senior Fund Manager in May 2009, now heads equities and also directly manages a few funds. He has an experience of nearly 20 years in capital markets having worked with FCH, Principal PNB, Oppenheimer & Co, Indosuez WI Carr and Motilal Oswal, among others. Srinivasan is a post graduate in commerce and has done his MFM from the University of Bombay.

SBI Funds Management Private Limited

. India’s premier and largest bank with over 200 . Global leader in asset management years experience (Estd: 1806) . Backed by Credit Agricole and Amundi, the parent . Asset base of USD 465bn* company of Amundi Asset Management listed in Euronext Paris . Pan-India network of ~23,737 branches and 59,108 ATM’s as at end of December 2016 . More than 2,000 institutional clients and distributors in 30 countries . Servicing over 299 million customers Over 100 million retail clients via its partner networks . Only Indian bank in Fortune 500 list; ranked . among the top 100 banks in the world . USD 1083 bn AuM as at end of December 2016 . Ranking No 1 in Europe, Top 10 worldwide #

63% 37%

Source: SBI Analyst Presentation as on end December 2016. USD 1 = INR 67.95 # Source : Amundi website as on end December 2016 SBI Funds Management: India’s First Bank Sponsored Funds

Established in 1987: A leading asset manager in India

Broad AUM Investor USD 14.09 bn Base

 INR 1,57,025 Crores* AAUM in mutual funds Broad AAUM Investor Rs. 1,57,025 crs  Asset management across mutual funds, segregated managed Base Experienced accounts, domestic advisory & offshore advisory business Wide Investment Distribution Network Team  Multiple asset classes ranging from equities and debt, money Experienced market to ETFs and structured funds Wide Distribution Investment Network Team  Investment team of 35 professionals with strong track record Extensive Product Range  Broad customer base with ~ 5.10 million folios related to Extensive individual, corporate and institutional investors Product Range

* Quarterly average March 2017 SBIFM: A Complete Framework

Group Advantage 25 years of experience Both domestic and international strengths Investors trust Expertise Highly experienced Risk team Management Strong industry Six member team relations Coherent monitoring Complete in-house research Processes Structured & Disciplined Rigorous investment templates Agility with Flexibility Disclaimer

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

This presentation is for information purposes only and is not an offer to sell or a solicitation to buy any mutual fund units/securities. The views expressed herein are based on the basis of internal data, publicly available information & other sources believed to be reliable. Any calculations made are approximations meant as guidelines only, which need to be confirmed before relying on them. These views alone are not sufficient and should not be used for the development or implementation of an investment strategy. It should not be construed as investment advice to any party. All opinions and estimates included here constitute our view as of this date and are subject to change without notice. Neither SBI Funds Management Private Limited, SBI Mutual Fund nor any person connected with it, accepts any liability arising from the use of this information. The recipient of this material should rely on their investigations and take their own professional advice