Page 15 - Banking Finance March 2021

MUTUAL FUND

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Mutual Fund News
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SBI MF launches first three-year correlation between the which aims to generate capital
India and US market is relatively low appreciation by investing 80-100 per
international fund in US at 0.6, it added. A low correlation cent of the net assets in the equity of
stocks means that the two assets perform at companies based on Environmental,

SBI Mutual Fund has launched a new different times, reducing the Social and Governance criteria.
scheme investing in US stocks, its first- fluctuation in an investor's portfolio. The new fund will close on March 12.
ever international feeder fund. The IT is the largest sector in the underlying It will adopt a bottom-up approach to
new scheme will feed into the Amundi fund with a weight of 37.3%, followed select stocks. While the fund will invest
Funds - US Pioneer Fund, which is by consumer discretionary stocks at most of its assets in large-cap
domiciled in Luxembourg. 15%. The five largest holdings are companies, it will also have up to 35

According to a presentation from SBI Microsoft, Apple, Alphabet, Amazon per cent exposure to mid-and small-
MF, the underlying fund has delivered and Visa (as of 31 January). The cap companies. The fund is
returns of 16.27% (compound annual expense ratio of the underlying fund as benchmarked to the Nifty 100
growth rate) in euro terms, beating its well as the feeder fund combined is Enhanced ESG Index.
benchmark S&P 500 Index return of capped at 2.25% per annum. Saurabh Nanavati, Chief Executive
16.16% (as of 31 January). The Experts asked investors to evaluate all Officer, Invesco Mutual Fund, said it is
underlying fund has a size of $2.5 the options for international investing important to analyse a company
billion. before picking the new launch. through the ESG lens while

"Typically, most investments of Indian "While geographic diversification is governments and society penalise
investors happen in Indian stocks. important, there are a range of low- irresponsible companies.
Global investments will offer strong cost options available in this area. On the other hand, he said companies
diversification benefits. The underlying Investors should consider these, with strong ESG proposition are
fund has most of today's fast-growing including funds with an established creating value through increased top-
tech companies and follows a strict track record, before making a line growth, lower production costs,
environmental, social, governance decision," said Kirtan Shah, chief better financing terms, government
(ESG) philosophy," said D.P. Singh, chief financial planner at Sykes and Ray support and subsidies besides
business officer, SBI Mutual Fund. Equities (I) Ltd. enhanced returns on capital invested.
Rupee depreciation against the dollar
tends to enhance the returns of Invesco Mutual Fund SBI gearing up for $1
international funds. launches Invesco India ESG billion IPO for its mutual
According to the SBI MF presentation, Equity Fund fund venture
the rupee has depreciated by 3.29%
Invesco Mutual Fund has launched the State Bank of India is preparing for its
against the dollar per year on average
(a rolling three-year CAGR basis). The 'India ESG Equity Fund' new fund offer, mutual fund joint venture for an initial

BANKING FINANCE | MARCH | 2021 | 15