The Reserve Bank of India has allowed SBI Mutual Fund (SBI MF) to acquire up to 9.99 per cent of Karur Vysya Bank (KVB)’s paid-up share capital or voting rights. The approval was conveyed through a letter dated August 23, 2024, from the RBI, in accordance with Regulation 30 of the Securities and Exchange Board of India (SEBI) Listing Obligations and Disclosure Requirements (LODR) Regulations, 2015.
The RBI’s decision is subject to SBI MF’s adherence to a range of banking and financial regulations, such as the Banking Regulation Act of 1949, guidelines on share acquisition, and the Foreign Exchange Management Act, 1999.
KVB, in clarification, added that the approval granted is contingent upon specific conditions. One such condition stipulates that SBI MF must secure the predominant shareholding within a year of receiving the approval letter from the RBI.
Failure to comply with this requirement will lead to the revocation of the approval. Moreover, SBI MF is mandated to ensure that its ownership in KVB remains below 9.99% in terms of the bank’s paid-up share capital or voting rights. In circumstances where the shareholding decreases below 5%, SBI MF must seek renewed approval from the RBI to augment its investment in the bank.
SBI Mutual Fund, established on June 29, 1987, as a Trust with State Bank of India (SBI) as the sponsor and SBI Mutual Fund Trustee Company Private Limited as the Trustee, is a leading player in the mutual fund industry. The fund was registered with SEBI on 23 December 1993 and later became a joint venture between SBI and AMUNDI Asset Management on 13 April 2011.
As of March 31, 2024, SBI Mutual Fund boasted an impressive Rs 913,780.06 crores as assets under management (AUM), representing 17.11% of the industry’s AUM. SBI holds a majority 63% stake in SBI Funds Management Pvt Ltd (SBIFMPL), with the remaining 37% owned by AMUNDI Asset Management through its wholly-owned subsidiary, Amundi India Holding.
Offering a diverse range of 72 primary schemes, SBI Mutual Fund caters to various investor preferences with 37 equity funds, 22 debt schemes, 11 hybrid schemes, and 2 specialized funds like gold funds. With its strong financial backing and extensive product offerings, SBI Mutual Fund continues to be a trusted choice for investors seeking growth and stability in their portfolios.
SBI Nifty 50 ETF, SBI S&P BSE Sensex ETF, and SBI Equity Hybrid Fund are the three largest schemes of the fund house.
SBI Mutual Fund recently announced the launch of a thematic mutual fund i.e., SBI Innovative Opportunities Fund, which opened for public subscription on July 29, and closed on August 12, 2024.
Some of the top SBI Mutual Fund schemes are:
SBI PSU Fund
Fund Size: Rs 4,602 Crs
Return (p.a): + 42.40%
SBI Infrastructure Fund
Fund Size: Rs 4,524 Crs
Return (p.a): + 37.54%
SBI Contra Fund
Fund Size: Rs 37,846 Crs
Return (p.a): + 37.53%
SBI Long Term Equity Fund
Fund Size: Rs 27,527 Crs
Return (p.a): + 33.90%
SBI Small Cap Fund
Fund Size: Rs 32,761 Crs
Return (p.a): +32.93%
SBI Magnum Midcap Fund
Fund Size: Rs 21,127 Crs
Return (p.a): +32.70%
SBI Consumption Opportunities Fund
Fund Size: Rs 2,679 Crs
Return (p.a): + 32.37%
SBI Healthcare Opportunities Fund
Fund Size: Rs 2,980 Crs
Return (p.a): + 29.82%
SBI Technology Opportunities Fund
Fund Size: Rs 4,206 Crs
Return (p.a): + 27.98%
SBI Large & Midcap Fund
Fund Size: Rs 27,382 Crs
Return (p.a): + 27.91%
SBI Magnum COMMA Fund
Fund Size: Rs 661 Crs
Return (p.a): + 27.22%
SBI Equity Minimum Variance Fund
Fund Size: Rs 220 Crs
Return (p.a): +24.52%
SBI Flexicap Fund
Fund Size: Rs 22,816 Crs
Return (p.a): + 22.46%
SBI Bluechip Fund
Fund Size: Rs 51,244 Crs
Return (p.a): + 22.32%