Company Overview

State Bank of India Mutual Fund popularly known as SBI Mutual Fund, is an Indian private asset management company formed by the State Bank of India (SBI) and incorporated in 1987 with its head office located in Mumbai, India. It is a joint venture between the State Bank of India, an Indian public sector bank, and Amundi, a European asset management company.

The company is known for its absolute research capabilities, experienced fund management team, and diverse investment options spanning equity, debt, and hybrid funds. SBI Funds Management has developed itself as a trusted player in the asset management industry by  focusing on transparency, innovation, growth and customer satisfaction.

A shareholder agreement in this regard was entered into on April 13, 2011, between SBI & AMUNDI Asset Management. Accordingly, SBI currently holds a 62% stake in SBI Mutual Fund, and the 37% stake is held by AMUNDI Asset Management through a wholly owned subsidiary, Amundi India Holding. SBI & AMUNDI Asset Management shall jointly develop the company as an asset management company of international repute by adopting global best practices and maintaining international standards.

SBI Funds Management Ltd. is dedicated to helping investors build and preserve wealth through disciplined and strategic investment approaches.

SBI Mutual Fund (SBI MF) achieved a historic milestone on July 12, 2024, by becoming the first fund house in India to surpass Rs 10 trillion in assets under management (AUM). This significant accomplishment is attributed to the post-pandemic equity boom and a growing awareness of mutual fund investing.

The Company also offers alternate asset investment products through Alternative Investment Funds (AIF). The Company is acting as Investment Manager of SBI Alternative Equity Fund & SBI Alternative Debt Fund.

Recently, SBI Mutual Fund bought a 2.84 percent stake in AMI Organics for an average price of Rs 1350 per share. Plutus Wealth Management sold a 2.44 percent stake in AMI Organics for an average price of Rs 1350 per share.

Products Offerings

• Domestic mutual funds

• Offshore funds

• Alternative investment funds

• Institutional investor portfolio management advisory services

Functions of SBI AMC

• SBI Mutual Fund provide wide variety of Mutual Funds schemes to its customers which give them the option to invest in the scheme which they find suitable for themselves.

• SBI Mutual Funds aims to meet the needs of different investors and their financial goals by offering a variety of funds and investment strategies

SBI AMC Share Price and Unlisted Shares

The SBI AMC unlisted share price is an important metric for investors who are monitoring the performance of the company in the private equity arena. Based on the latest data, the SBI AMC share price is a good option for investors seeking to invest in the expanding asset management industry in India. The SBI AMC unlisted share price varies based on market conditions and investor demand, which indicates the overall financial well-being and prospects of the company.

Background

In India, the mutual fund market was initiated by the Unit Trust of India (UTI), along with the Government of India and the Reserve Bank of India (RBI), in 1963. SBI Mutual Fund was the first non-UTI mutual fund in India, launched on June 29, 1987.

The key features of the SBI Mutual Fund can be summed up as follows:

1. SBI Mutual Fund offers its customers around 61 schemes in different categories. This helps the customer to invest according to his/her needs.

2. This SBI Mutual Fund delivers value, customer satisfaction which helps in retaining the trust of the investors through a big network of more than 222 points of acceptance around the country.

3. The main philosophy of the SBI Mutual Fund is ‘growth through innovation’ and they are sticked and following this philosophy and accordingly the investment policies are set up.

4. SBI Mutual Fund has more than 5.4 million investors across the country and it is one of the biggest investment management firms in the country.

5. It is one of the most reliable and one of the fastest growing mutual funds in India with gaining trust of its investors.

Mutual Fund Industry in India

Average Assets Under Management (AAUM) of Indian Mutual Fund Industry for the month of July 2024 stood at ₹ 64,70,664 crore. 

The AUM of the Indian MF Industry has grown from ₹10.06 trillion as on July 31, 2014 to ₹64.97 trillion as on July 31, 2024 more than 6-fold increase in a span of 10 years. 

The MF Industry’s AUM has grown from ₹ 24.54 trillion as on July 31, 2019 to ₹64.97 trillion as on July 31, 2024, more than 2-fold increase in a span of 5 years. 

The Industry’s AUM had crossed the milestone of ₹10 Trillion (₹10 Lakh Crore) for the first time in May 2014 and in a short span of about three years, the AUM size had increased more than two folds and crossed ₹ 20 trillion (₹20 Lakh Crore) for the first time in August 2017. 

The AUM size crossed ₹ 30 trillion (₹30 Lakh Crore) for the first time in November 2020. The Industry AUM stood at ₹64.97 Trillion (₹ 64.97 Lakh Crore) as on July 31, 2024.

Business Model

Management Fees: The Company receives management fees from the mutual fund which is charged as a percent of the Assets Under Management (AUM) and is recognised on accrual basis.

Portfolio Management and Advisory Services: Portfolio Management Fees and Advisory Fees are recognised on an accrual basis as per the terms of the contract with the customers.

Dividend income: Dividend income from investments is recognised when the right to receive payment has been established.

Interest income: Interest income from a financial asset is recognised when it is probable that the economic benefits will flow to the Company and the amount of income can be measured reliably.