SBI Magnum Multiplier Plus Presentation

• 1. Flow of the PresentationCreation of Effective PortfolioRisk ManagementSynopsisFund and Portfolio DetailsBiographies

2. Creation of Efficient Portfolio CAGR , since Jan 2005Volatility, since Jan 200520.56% 35.06%33.91%32.79% % CAGR Return 25.00%18.42% 16.76% 40.00% 20.00% 15.00% 30.00% 10.00% 20.00%5.00% 10.00%0.00% 0.00% Sensex Midcap Small CapSensexMidcap Small CapBSE Sensex has outperformed BSE midcap and BSE Daily volatility over long term of BSE Sensex, BSEsmall cap index in last 5 yearsMidcap and BSE small cap is very Similar BSE Sensex, BSE Midcap and BSE Small cap show very similar characteristics over a long period. Risk, Returns imply that investments over a long periods are capitalization agnostic. But long term trends results are derived on various short term trends.Source: Bloomberg. Data as on 31.12.2010 3. Creation of Efficient Portfolio PerformanceGrowth of INR 10080.00%140120 Value in INR60.00%CAGR returns %100 8040.00% 60 4020.00% 200 Oct 08May 08 Aug 08Nov 08Jul 08 Apr 08 Jan 08Feb 08 Mar 08 Jun 08Jan 09 Feb 09Dec 07Sep 08 Dec 08 0.00%1 Year 2 Year 3 Year5 Year-20.00% Sensex MidcapSmall Cap BSE MID CAPBSE SMALL CAP BSE Sensex The returns of BSE Sensex, BSE Midcap and BSE Small cap areIn a downward trending market, large caps outperform divergent in shorter time horizons.midcaps and small caps375Sustained Bull run350Growth of INR 100325300275250225200175150125100 75 50Sensex MidcapSmallcap Source: Bloomberg. Data as on 31.12.2010 In an upward trending market, midcaps and small caps outperform large caps 4. EFFECTIVE PORTFOLIO = Large cap + Midcap 5. Top down large cap allocation 6. Top Down Approach for Large CapsEconomic InterestQualitativeLiquidityRegulation Growth Rates FactorsFlowsMacro Outlook Demand- BusinessProfitabilityPricingSupplyCycleSector AllocationBusines ValuationMgmtss ModelStock Selection 7. Focus Themes Domestic ConsumptionHealthcare 8. Focus Sectors: Domestic Consumption150 Index price movement140130120110100 90 80 70 60 50BSE 100 BSE FMCG Consumption sector to reap benefits: Resilient domestic economy and negative real interest rates continue to boost consumer spending. Rural up liftment Rural Income not completely dependent on agriculture Dependence on Monsoon is reducing as the proportion of irrigated land increases and NREGA Inclusive growth government policies Developmental policies by UPA government has led to Wealth effect play in rural India. example: Ruralpenetration of Car, Two wheelers Government has spent US$26bn on key rural programmes in last four years, which is ~11% of totalgovernment spending in the same periodSource: Bloomberg. Data as on 31.12.10 9. Healthcare 160 150Index Price Movement 140 130 120 110 1009080706050BSE 100 BSE Healthcare With multiple growth drivers (US, emerging markets, domestic demand) playing outsimultaneously, it is expected that earnings trajectory would be strong & return ratios robust. Cost advantage and quality acceptance is opening up a number of markets across the globe. MostIndian firms are better placed (in terms of size, visibility, readiness of plants & filings) to target thiswave than in the past, due to increase investments Risk return trade off is favourable on the back of better visibility and the inherent defensive natureof the business Source: Bloomberg. Data as on 31.12.10 10. Bottom up midcap allocation 11. Bottom up Process for Mid CapsSell-SideQuantitative ToolsPrimaryResearch Business Outlook ManagementValuations ManagementValuationsInteractionStress Earnings TestingModel 12. Stocks which have fared well Zydus Wellness 250 Stock Price Movement (Base 100) 200 150 10050 0 2/1/10 3/1/10 4/1/10 5/1/10 6/1/107/1/108/1/109/1/1010/1/10 11/1/10 12/1/10Zydus Wellness BSE 100 A perfect play on H&W (health & wellness) theme. Market leader in high growth niche categories.. The company benefits from its first-mover advantage in key segments. Revenue mix is well balanced with all 3 brands contributing. (Sugar free, Everyouth and Nutralite)Stocks in the portfolio as on 30/04/2011. These stocks may/ may not be in portfolio in future Fund manager reserves the right to alter/modify the portfolio within theasset allocation pattern as mentioned in the SID. Views expressed about the stocks is for the purpose of general information only on the basis of various availablesources. It should not be construed as recommendations to buy/sell the stocks. Investors are requested to take the professional advice and read the schemeinformation document carefully before investing.Source: Bloomberg 13. Federal Bank 200.00Stock Price Movement (Base 100) 175.00 150.00 125.00 100.0075.0050.00 2/1/10 3/1/10 4/1/10 5/1/10 6/1/107/1/10 8/1/109/1/1010/1/10 11/1/10 12/1/10Federal BankBSE 100 Strong focus on profitable segments like retail & working capital SME lending. Key strengths are high margins, high return on assets and stable retail & NRI deposit base. Managements focus on strengthening risk management & performance planning should be keypositives that play out over the medium term. Valuations compare favorably with the banks old privatesector peers.Stocks in the portfolio as on 30/04/2011. These stocks may/ may not be in portfolio in future Fund manager reserves the right to alter/modify the portfolio within theasset allocation pattern as mentioned in the SID. Views expressed about the stocks is for the purpose of general information only on the basis of various availablesources. It should not be construed as recommendations to buy/sell the stocks. Investors are requested to take the professional advice and read the schemeinformation document carefully before investing.Source: Bloomberg 14. Lupin 180 Stock Price Movement (Base 100) 160 140 120 10080604020 0 2/1/10 3/1/10 4/1/10 5/1/10 6/1/10 7/1/10 8/1/109/1/10 10/1/10 11/1/10 12/1/10LupinBSE 100 Strong player in the Domestic market Investments in the right direction Well diversified businessStocks in the portfolio as on 30/04/2011. These stocks may/ may not be in portfolio in future Fund manager reserves the right to alter/modify the portfolio within theasset allocation pattern as mentioned in the SID. Views expressed about the stocks is for the purpose of general information only on the basis of various availablesources. It should not be construed as recommendations to buy/sell the stocks. Investors are requested to take the professional advice and read the schemeinformation document carefully before investing.Data as on 31.12.2010 15. In a Nut Shell: MMPS PortfolioLarge Cap Portfolio Midcap Portfolio Alpha Strategy Beta Strategy Volatile Less Volatile Bottom upPhilosophy Highly Liquid Stocks Top Down Strategy 16. RISK & PERFORMANCE ANALYSIS 17. Risk AnalysisQuantitative Data Ratio Standard Deviation 30.46% Beta0.83 R-Squared 0.95 Sharpe Ratio0.14 Portfolio Turnover0.54 Total Expense Ratio 2.00Source: Crisil Fund AnalyserData as on Apr 30, 2011 18. Performance AnalysisCAGR Return 30.00% 24.97% 25.00% 19.26% 20.00%14.75% 15.00% 11.86% 10.00%7.45% 6.62% 5.20%5.00% 3.09%0.00%1 year3 years 5 years Since InceptionFundBenchmarkPast performance may or may not be sustained in future. Returns are CAGR and fordividend option. It is assumed that dividend declared under the scheme has beenreinvested at the prevailing NAV. Growth option was introduced on 25th May 2005. NAV(Growth ) as on 30/04/2011 is Rs. 81.59. Date of inception is 28th February 1993. Source:MFI Explorer. Data as on 30/04/2011 19. Synopsis The key to investment in equity markets is to invest in all the capitalization and allocate assets to balance volatility and returns. Active asset allocation within Largecap and Midcap to generate alpha Within each market capitalization, alpha generation is factor of identifying quality stock which can deliver value. Robust investment process helps identifying quality stocks . Portfolio Focused Themes o Domestic Consumption o Healthcare Portfolio is currently Large cap biased with significant exposure to midcaps Portfolio is overweight in Industrial Manufacturing, Consumer Goods and Pharma vis- a vis benchmark Portfolio has outperformed benchmark on 3 year, 5 year & since inception basis 20. Investment Management ProcessStock UniverseQuant Screening Fundamental analysis Investment UniverseFundRisk Controls MandatePortfolio 21. Fund FeaturesInvestment Universe:2937 listed stocks on BSE (traded regularly)Investment Style:GrowthInvestment Approach: Mix of Top-down & Bottom-up ApproachBenchmark:BSE 200Inception Date: Feb 28, 1993Normal Asset AllocationStyle Box Type of Instrument (% of Net Assets) Risk ProfileEquity and related instrumentsNot less than 70% Medium to HighDebt instruments (including Securitized Not more than 30% Low to mediumdebt & Govt. Securities)Securitized debtNot more than 10% Medium to HighMoney Market InstrumentsBalance Low 22. Fund DetailsMarket Cap AllocationSector ExposureOverweight in Industrial Manufacturing, Consumer Goods and The fund is currently skewed towards large capPharmaData as on 30.04.2011 23. Fund Details Top 10 HoldingsDividend HistoryStocks% of AssetsLAST DIVIDENDS STATE BANK OF INDIA5.66%Record Date Dividend (in Rs./Unit) NESTLE (I) LIMITED 5.44% MAHINDRA & MAHINDRA LIMITED5.09%01- Oct-107.00 BLUE DART EXPRESS LIMITED4.91% BANK OF INDIA4.85% 22-Oct-09 7.00 ICICI BANK LTD 4.66%24-Aug-07 6.00 LUPIN LIMITED4.42% INFOSYS TECHNOLOGIES LIMITED 3.90%31-May-05 2.10 TATA CONSULTANCY SERVICES LIMITED3.73% THERMAX LTD3.49%Top 10 stocks comprise 46.15% of the portfolioData as on 30.04.2011 24. Expertise Managing the Fund Mr. Navneet Munot Mr. Navneet Munot joined SBI Funds Management Pvt. Ltd. as Chief Investment Officer in Dec. 2008. Most recently he was the Head of Multi Strategies fund at Morgan Stanley Investment Management. Prior to joining Morgan Stanley Investment Management, he worked as the Chief Investment Officer (Fixed Income and Hybrid Funds) of Birla Sun Life Asset Management Company Ltd. Several funds managed by Navneet got recognition for their consistent superior risk-adjusted performance and won several awards from independent agencies such as CRISIL, CNBC TV 18, ICRA, Reuters Lipper and got top ranking in Value Research. Navneet has been associated with the financial services business of the Birla group for over 13 years and worked in various areas such as fixed income, equities and foreign exchange. His articles on matters related to financial markets have widely been published. Navneet holds a Masters in Commerce and is also a rank holder Chartered Accountant. He is a charter holder of Chartered Financial Analyst Institute, US and Chartered Alternative Analyst Institute, US. He has also done Financial Risk Management, FRM from Global Association of Risk Professionals (GARP). Mr. Jayesh Shroff Mr. Jayesh Shroff is the fund manager of the scheme. Mr. Jayesh has done his B.Com and PGD (MBFS) ICFAI. He has experience of over 7 years as Fund Manager. He also has wide experience in investment banking activities including M&A activities, venture capital funding, preparation of business plans, project reports etc. His last assignment was with BOB Mutual Fund and has been with SBI Funds Management Pvt. Ltd. since March 2006. 25. Disclaimer Disclaimer: Past performance is no guarantee of future results. Risk Factors: Mutual Funds and Securities Investments are subject to market risks and there is no assurance or guarantee that the objective of scheme(s)/plan(s) will be achieved. As with any other investment in securities, the NAV of the Magnums/Units issued under the scheme(s)/plan(s) can go up or down depending on the factors and forces affecting the securities market. Past performance of the Sponsor/AMC/Mutual Fund/Scheme(s)/Plan(s) and their affiliates do not indicate the future performance of the scheme(s) of the Mutual Fund. Investment Objective: Magnum Multiplier Plus Scheme 93 (An Open-Ended Equity Scheme): To provide investors long term capital appreciation along with the liquidity of an open-ended scheme. The scheme will invest in a diversified portfolio of equities of high growth companies. Magnum Multiplier Plus Scheme 1993 is only the name of the scheme and does not in any manner indicate either the quality of the scheme, its future prospects and returns. Statutory Details: SBI Mutual Fund has been set up as a Trust under The Indian Trusts Act, 1882. State Bank of India (SBI), the sponsor is not responsible or liable for any loss resulting from the operation of the schemes beyond the initial contribution made by it of an amount of Rs. 5 lacs towards setting up of the Mutual Fund. Asset Management Company- SBI Funds Management Private Limited (A joint venture with SBI and Socit Gnrale Asset Management). Trustee Company: SBI Mutual Fund Trustee Company Private Limited. Please read the Scheme Information Document carefully before investing. This presentation is for information purposes only and is not an offer to sell or a solicitation to buy any mutual fund units/securities. 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, 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