Finance
By: Shree1news, 27 FEB 2021
SBI Mutual Fund has launched its first worldwide fund offering that will invest in US stocks. Though among the domestic schemes of the SBI MF, such as SBI Focused Equity already invest some part of their portfolio in international stocks, this new scheme will feed into the Amundi Funds – US Pioneer Fund.
The Amundi Funds, which relies in Luxembourg, has delivered returns of 16.27 per cent (CAGR) in euro terms, beating its benchmark S&P 500 Index return of 16.16% (as of 31st January 2021), Livemint reported. The underlying fund has a size of $2.5 billion.
The fund is targeted at high-net-worth investors, seasoned investors, young investors, and hedge funds, stated DP Singh, Chief Business Officer, SBI Mutual Fund.
The minimum investment required is Rs 5,000. The expense ratio of the underlying fund as well as the feeder fund combined is capped at 2.25 per cent every year under SEBI guidelines.
It must be noted that Rupee depreciation against the US dollar enhances the returns of international mutual funds. The SBI highlighted that Indian Rupee depreciated by 3.29 per cent against the US dollar on average annually (a rolling 3-year CAGR basis).
Further, the country’s largest lender added that the IT sector holds the majority proportion of the underlying fund at a weight of 37.3 per cent, followed by consumer discretionary stocks at 15 per cent. Microsoft, Apple, Alphabet, Amazon, and Visa are the 5 largest holdings in the underlying fund (as of January 31)
Source:A-N
