SBI MF set for new launches

Undeterred by controversies regarding involvement of its former employees in 2001 securities scam, SBI Mutual Fund is planning a slew of launches including a `One-India fund', an equity-scheme which would spread its portfolio in four regions of the country. It targets 80-100 per cent per annum assets under management (AUM) growth in the coming years.

The fund house, a joint venture between State Bank of India (SBI) and France's Societe Generale Asset Management, is ready to hit markets with a `capital protection scheme' and Gold Exchange Traded Funds (GETFs) using the expertise of its overseas partner Societe Generale, said Deepak Chawla, managing director & CEO of SBI Funds Management Pvt Ltd.

"Our partner Societe Generale has the expertise in managing GETFs, capital protection schemes and real-estate ETFs. We are well equipped to utilise their expertise to launch these products here," said Chawla.

Recently, Sebi allowed mutual funds to launch capital protection schemes while it was also in the process of allowing fund houses to launch GETFs and real-estate ETFs.

SBI MF also has plans to launch schemes that would invest in overseas ETFs and securities.

"Our AUM has grown over 70 per cent in last one year. We want to continue the current pace of growth, We want to give a diversified product portfolio to the investors over a period of time," he said.

SBI MF's total AUM at the end of August stood at Rs 15,022.85 crore, up by 71 per cent from Rs 8742.09 crore in same period in 2005.

Central Bureau of Investigation (CBI) had named SBI MF's former chief and three fund managers (along with 26 others) in a charge sheet filed before a sessions court recently for alleged stock price manipulations in 2001 securities scam."

We cannot comment on this as the matter is under investigation. But, we can say that investors will continue to repose their faith in us. All investment decisions are taken by our investment committee," Chawla said.

SBI MF's latest offering `Arbitrage Opportunities Fund', which would utilise arbitrage opportunities to deliver good returns to investors, is currently open.

"The Arbitrage Opportunities fund is positioned to provide a low risk investment strategy to our ever growing community of investors. Arbitrage is one of the most effective ways to insulate oneself from market volatility. Arbitrage opportunities arise due to market inefficiencies and this fund seeks to exploit such inefficiencies that will manifest as mis-pricing in cash (stock) and derivative markets," he said. The arbitrage fund closes on 13 October.