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INVEST IN INDIA’S FUTURE

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A joint venture between SBI and Société Genéralé Asset Management
A joint venture between SBI and Société Genéralé Asset Management
SBI Mutual Fund

Presents

Partner in Prosperity

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A joint venture between SBI and Société Genéralé Asset Management
A joint venture between SBI and Société Genéralé Asset Management
Flow of Presentation
• Theme behind the Fund
• Startling Facts
• Let us look at
– Power – Energizing the nation
– Roads – Connecting the four corners
– Railways – Lifeline of the nation
– Urban Infrastructure – Rebuilding our cities
– Aviation – Taking wings
– Maritime – Not a landlocked nation
– Telecom – Ringing in a new revolution
– SEZs – Catalyst for world class infrastructure
– Oil & Gas – Fueling the nation
• New Initiative – Moving from Public to Private
– Infrastructure – A serious initiative??
• To Sum Up
• SBI Infrastructure Fund – Series I
– Key Highlights
– Investment Objective
– Scheme Details
– Strategy
• Why SBI Mutual Fund?
– Consistent Performance
– Our Achievements

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A joint venture between SBI and Société Genéralé Asset Management
A joint venture between SBI and Société Genéralé Asset Management
The Theme behind the fund
 The strong growth of the Indian economy rests on three Pillars viz.
outsourcing, demography and infrastructure
 Through SBI Infrastructure Fund we want to offer one of these strong
pillars as a theme for investors
 For the past 50 years, the country has grossly under invested in
infrastructure. Undoing of past 50 years has to be done in next 5 years
 Therefore the size of opportunity is very large and remains to be
fully captured
 It’s a great opportunity to become a ‘partner in prosperity’

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A joint venture between SBI and Société Genéralé Asset Management
A joint venture between SBI and Société Genéralé Asset Management
Some startling facts
 Total road length of highways in US is upward of 41 lakh kms.
 China has more than 30,000 kms of expressways (similar figure for India
is 200kms)
 In 2005, total residential property sold in China was 430 crs sq ft. (India
would not even be 1/10 of this)
 The single largest SEZ in china i.e. Shenzhen is 327sq kms. (Total area
under SEZ notified in India is approx. 120 sq kms.)
 Real estate investment in China in 2005 was 73 times that of 1995.
 No. of aircrafts flying in the domestic sector in China was 1250 in 2005
(200 in India)

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A joint venture between SBI and Société Genéralé Asset Management
A joint venture between SBI and Société Genéralé Asset Management
Indian infrastructure Major new initiatives

Time to think big

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A joint venture between SBI and Société Genéralé Asset Management
A joint venture between SBI and Société Genéralé Asset Management
Power
Energizing the nation

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A joint venture between SBI and Société Genéralé Asset Management
A joint venture between SBI and Société Genéralé Asset Management
Power
Energizing the nation
POWER

Xth Plan XIth Plan E

Power Generation capacity (MW) 1,30,000 2,08,000

Capacity addition (MW) 23,250 78,000

Inter regional transmission capacity (MW) 14,500 37,000


Source: Planning Commission

NTPC – Generation capacity


Plan period Capacity Addition (MW) Total Capacity (MW)
Xth Plan 5710 27,404
XIth Plan E 22,000 50,000
XIIth Plan E 25,000 75,000
Source: NTPC

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A joint venture between SBI and Société Genéralé Asset Management
A joint venture between SBI and Société Genéralé Asset Management
Power
Bigger is better
POWER

 Ultra Mega Power Projects (UMPPs)


 Nine projects of 4,000MW each to be set up in different states
 First project at Mundra already awarded
 Developers for two more projects to be selected in the next 3-6 months

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A joint venture between SBI and Société Genéralé Asset Management
A joint venture between SBI and Société Genéralé Asset Management
Power
Bigger is better
 Large Hydel projects

 Nuclear Power projects

• Plan to increase nuclear power capacity from 3900 MW currently to


10,000 MW by end of XIth plan and 20,000 MW by 2020
Source: Ministry of Power

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A joint venture between SBI and Société Genéralé Asset Management
A joint venture between SBI and Société Genéralé Asset Management
ROADS
Connecting the four corners

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A joint venture between SBI and Société Genéralé Asset Management
A joint venture between SBI and Société Genéralé Asset Management
Roads
Connecting the four corners
ROAD PROJECTS

 National Highway Development Program (NHDP) extended to seven


phases (50,000 km, Rs 2.2 lac crs), v/s two phases earlier (13,000 km,
Rs 64,600 crs)
 The parcel size of road projects is getting bigger
 New contracts will be for minimum 100kms or Rs. 500 crs., which ever is
lower
India’s road network (Kms)
Expressways 200
National highways 66,590
State highways 1,31,899
District roads 4,67,763
Rural roads 26,50,000
Source: NHAI

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A joint venture between SBI and Société Genéralé Asset Management
A joint venture between SBI and Société Genéralé Asset Management
RAILWAYS
Lifeline of the nation

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A joint venture between SBI and Société Genéralé Asset Management
A joint venture between SBI and Société Genéralé Asset Management
Railways
Lifeline of the nation
RAILWAY

 Indian Railways has the second-largest rail network in the world - 63,028
kms (70% is broad-gauge)
 Process of construction of Eastern and Western corridors already initiated.
 Dedicated freight corridor between Mumbai & Delhi costing approx. Rs.
50,000 crs
 Total capex of Rs 3 lac crs has been planned by Railways for XIth five year
plan.

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A joint venture between SBI and Société Genéralé Asset Management
A joint venture between SBI and Société Genéralé Asset Management
AVIATION
Taking wings

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A joint venture between SBI and Société Genéralé Asset Management
A joint venture between SBI and Société Genéralé Asset Management
Aviation
Taking wings
AIR TRAFFIC
350 350
300 300
250
250
200
150 200
100 150
Mar 2005 Mar 2006 Mar 2007
Total Fleet (nos.) (LHS)
Pessanger Traffic Domestic (Lkh) (RHS) Source: B & K Research

 Mumbai & Delhi airports already handed to private partners


 Bangalore and Hyderabad airports under development by private players
 Kolkatta and Chennai will also be developed through JV route
 AAI will develop and modernize 35 non metro airports in the country

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A joint venture between SBI and Société Genéralé Asset Management
A joint venture between SBI and Société Genéralé Asset Management
MARITIME
Not a landlocked nation
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A joint venture between SBI and Société Genéralé Asset Management
A joint venture between SBI and Société Genéralé Asset Management
Maritime
Not a landlocked nation
PORT PROJECTS

 Indian ports to handle cargo traffic of 800 MT by 2012 as compared to 520


MT in 2004-05
 Increase container capacity at 17% CAGR
 Improve port hinterland connectivity
 Sethusamudram project – canal between India and Sri Lanka

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A joint venture between SBI and Société Genéralé Asset Management
A joint venture between SBI and Société Genéralé Asset Management
TELECOM
Ringing in a new revolution

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A joint venture between SBI and Société Genéralé Asset Management
A joint venture between SBI and Société Genéralé Asset Management
Telecom
Ringing in a new revolution
TELECOM
 Telecom subscriber base expected to increase to 65 crs by the end of XIth
plan from current 20 crs.
31st March2003 31st March2007
Number of subscribers (Crs) 5.5 20.7
Teledensity (%) 4.5 18.3
Source: TRAI

 Wireless Penetration by country

Source: Macquarie Research

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A joint venture between SBI and Société Genéralé Asset Management
A joint venture between SBI and Société Genéralé Asset Management
Special Economic Zone (SEZs)
Catalyst for world class infrastructure
 91 SEZs with a cumulative area of over 12,000 hectares have been
notified.
 These SEZs would serve as centre of growth for the industry and economy.
 It would lead to development of backward areas, increasing employment
opportunities and create infrastructure for growth.
 100% FDI allowed under automatic route except for prohibited items.
 Minimum area of 1,000 hectares except for product specific SEZs.

No of SEZs Area (hectares)


Notified 91 12,000
Approved 237 36,103
In Principal Approval 167 139,681
Source: Ministry of Commerce

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A joint venture between SBI and Société Genéralé Asset Management
A joint venture between SBI and Société Genéralé Asset Management
URBAN INFRASTRUCTURE
Rebuilding our cities

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A joint venture between SBI and Société Genéralé Asset Management
A joint venture between SBI and Société Genéralé Asset Management
Urban Infrastructure
Rebuilding our cities
 A layout of Rs50,000 crs is planned under Jawaharlal Nehru urban renewal
mission.
 Urban population has increased from 21.7 crs to 28.5 crs during 1991-
2001 and number of million plus cities has increased from 23 to 35 in the
same period with number of people living in urban areas has increased
from 25.7% to 27.8% of total population
 Urban population will grow to almost 55 crs by 2021 and urban population
will increase from 27% to 41% in 2021
 Estimated investments in metro railways will further require an additional
INR 50,500 crs during 2007-12
 22 km trans harbour link in Mumbai

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A joint venture between SBI and Société Genéralé Asset Management
A joint venture between SBI and Société Genéralé Asset Management
Urban Infrastructure
40
2001, 35
35

Urban Population 30

25 1991, 23
30
Urban Population

20
25
(crs)

20 15
Million Plus Cities (Nos)
15
1991 2001
Period Urban Population as a percent of Total Population
27.8%
28%
27%
Source: Edelweiss Research 25.7%
26%
25%
24%
1991 2001

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A joint venture between SBI and Société Genéralé Asset Management
A joint venture between SBI and Société Genéralé Asset Management
OIL & GAS
Fuelling the nation

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A joint venture between SBI and Société Genéralé Asset Management
A joint venture between SBI and Société Genéralé Asset Management
Oil & Gas
Fueling the nation
 Emergence of gas as a fuel of choice

• India Hydrocarbon Vision 2025 estimates demand for natural gas at


332 MMSCMD by 2025E
 Leading to investments of INR 2.3 lac crs till FY12E
 68 companies participated in New Exploration and Licensing Policy (NELP)
Round VI
 As on date we have at least one large refinery under construction with an
outlay of approximately Rs 27000 crores
 7 more refineries are in the planning stage with a total outlay of
approximately Rs 67000 crores
 9 cities in India are using CNG as an auto fuel

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A joint venture between SBI and Société Genéralé Asset Management
A joint venture between SBI and Société Genéralé Asset Management
Oil & Gas
Fueling the nation
Significant gas discoveries in the past four years
Company Basin Block name Reserves
Reliance/Niko KG basin KG-DWN-98/3 ~14.5 tcf (in-place)
Gujarat State Petroleum Corp. KG basin KG-OSN-2001/3 20.0 tcf (not yet certified)
ONGC KG basin KG 98/2 estimated 6.0 tcf
Reliance/Niko KG basin NEC-25 estimated - 4-5 tcf
ONGC Mumbai offshore Vasai east offshore fields estimated - 3.5 tcf
Source: Industry,
GAIL’s existing and proposed pipelines
Description Pipeline length (kms)
Existing pipelines 5,340
Proposed addition in pipelines 13,108
Total pipelines after expansion 18,448
Source: Industry

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A joint venture between SBI and Société Genéralé Asset Management
A joint venture between SBI and Société Genéralé Asset Management
The new Initiative
Move from Public to Private
 Roads

• It is estimated that of the total outlay of appox. Rs 2,20,000 crs in the


11th plan, 70% would be accounted for by the private sector.
 SEZs

• With recent legislation, govt. will have no role to play in SEZ


development
 Airlines

• Post the monopoly of public sector, the airline industry has grown at
massive scale
• During April to Sept 06, domestic air passengers recorded 44.6%
growth.

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A joint venture between SBI and Société Genéralé Asset Management
A joint venture between SBI and Société Genéralé Asset Management
The new Initiative
Move from Public to Private
 Shipping

• The expansion in pure play shipping and in off shore and rig segment
is largely done by private sector

 Telecom

• The classic case of growth explosion post liberalization of the sector


• Teledensity has moved up from 3% to 18.3% in March 07.
• Total telephone connections increased from 5.5 crs in March03 to
20.7 crs in March 07.
• Tariff for national long distance calls (STD) has come down from
24Rs/min 2001 to 1Rs/min

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A joint venture between SBI and Société Genéralé Asset Management
A joint venture between SBI and Société Genéralé Asset Management
Government now a facilitator
 After successful examples of growth in sectors like airlines, telecom, etc.,
the government has relinquished its role from being an operator to being
a facilitator
 Now the mantra is ‘Government legislates & industry implements’
 All the new infrastructure projects are based on the above principle.
 As a facilitator, the govt. of India has started various programmes like
• Rajiv Gandhi Gramin Vidyutikaran Yojna (RGGVY)
• North South East West (NSEW) corridor
• Jawaharlal Nehru Urban Renewal Mission (JNURM)
 And it has also formed funding companies for the same
• Power Finance corporation
• Indian Infrastructure Finance Company (IIFCL)
• Infrastructure Development Finance Company (IDFC)

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A joint venture between SBI and Société Genéralé Asset Management
A joint venture between SBI and Société Genéralé Asset Management
PPP – A great steroid

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A joint venture between SBI and Société Genéralé Asset Management
A joint venture between SBI and Société Genéralé Asset Management
Public Private Partnership (PPP)
A great steroid
 Public Private Partnership is a magical wand through which the country
plans to tide over huge deficit in infrastructure
 Mechanism
• Transfer of public assets for a specified period to private sector who
controls, develops and collects user charges for the asset and later
transfers it back.
• Viability gap funding: In case the project is not viable only through
post completion operation, the govt. supports the project through
viability gap funding; meaning the govt. will give an initial grant to
bring the project cost down to viable level
• The private party is chosen through competitive bidding which entails
the revenue share or grants from the government for the project, its
time frame etc

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A joint venture between SBI and Société Genéralé Asset Management
A joint venture between SBI and Société Genéralé Asset Management
How big is the theme?
 The Approach Paper for the XIth 5 Year Plan has proposed an investment
of US$320 bln (Rs 14.5 lac crs) in next 5 years in infrastructure. So
primarily that’s the size of opportunity

 Gross capital formation in infrastructure as a proportion of GDP

• Has remained at around 4% of GDP during 1997-98 to 2003-04

• Estimated to be around 4.6% during the tenth plan period

• During the 11th plan, government would have to strive for a figure
near 7-8% to sustain a growth of 9% - that’s where the figure of US$
320 bln comes from.

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A joint venture between SBI and Société Genéralé Asset Management
A joint venture between SBI and Société Genéralé Asset Management
How big is the theme?
Gross capital formation in infrastructure as a
proportion of GDP (percent)

8.0%
7.0%
7.0%
6.0%
5.0%
4.0% 4.6%
4.0% 4.0%
3.0%
2.0%
1.0%
0.0%
1997 -98 2003 - 04 Estimate in 10th plan Req in 11th plan
period period to sustain a
growth of 9%

Source: Government of India

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A joint venture between SBI and Société Genéralé Asset Management
A joint venture between SBI and Société Genéralé Asset Management
How big is the theme?
• Committee on infrastructure, headed by Prime minister has estimated
investment requirements by 2012 as

Source: Planning Commission

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A joint venture between SBI and Société Genéralé Asset Management
A joint venture between SBI and Société Genéralé Asset Management
India v/s China - the road ahead…

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A joint venture between SBI and Société Genéralé Asset Management
A joint venture between SBI and Société Genéralé Asset Management
Is the Government serious
about developing infrastructure?
 The PPP structure is now firmly in place and will attract large players, both
locally and globally in contracting and development stage.
 Rather than evolving agreements on a project by project basis government
has decided to create standardized frameworks.
 The Model Concession Agreement for NHDP is also finalized now and will
be replicated for other sectors like railways, ports, etc.
 Launch of “India infrastructure Financing Initiative” - a collaborative effort
of IDFC, IIFCL, Citigroup and Blackstone to raise approximately $5b
(Rs 22,000 crs) in capital.
 100% FDI on automatic route in a lot of infrastructure sectors.

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A joint venture between SBI and Société Genéralé Asset Management
A joint venture between SBI and Société Genéralé Asset Management
Can this fund go the same way as
Tech funds
launched at the peak of 2000?

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A joint venture between SBI and Société Genéralé Asset Management
Why not?
 This thought has come up because:
 Stocks of the infrastructure sector have run up recently
 Many mutual funds are launching infrastructure funds
 We feel that the concerns do not have the same background because:
 the opportunity is much bigger than what we have seen and the
companies may continue to see an increase in revenues and profits.
 In late 90s the investment that went into technology sector was
primarily in internet properties & technologies. These were all virtual
properties with negligible physical assets and were difficult to value.
 Investment in infrastructure is all about creating massive physical assets
which are visible. Unlike internet assets, infrastructure projects &
companies are assessed and rated by lenders and rating agencies.
 Government has also suggested that Infrastructure Funds be launched
by mutual funds – guidelines being framed for this

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A joint venture between SBI and Société Genéralé Asset Management
A joint venture between SBI and Société Genéralé Asset Management
Some case studies of how the valuations
of the companies in the infrastructure
sector have changed when only part of the
opportunity has been captured

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A joint venture between SBI and Société Genéralé Asset Management
A joint venture between SBI and Société Genéralé Asset Management
Construction companies
(Rs crs)
L&T FY04 FY07
Sales 9,924 17,897
PAT 591 1,655
Order Book 16,970 36,213
Market Capitalization 7,904 45,635
Gammon
Sales 878 2,149
PAT 38 91
Order Book 3,747 8,500
Market Capitalization 563 2,633
Nagarjuna Construction
Sales 758 2,950
PAT 32 142
Order Book 1,492 7,500
Market Capitalization 174 3,331

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A joint venture between SBI and Société Genéralé Asset Management
A joint venture between SBI and Société Genéralé Asset Management
Telecom Companies
(Rs crs)

Bharti FY04 FY07

Mobile Subscriber base (Crs) 0.68 3.71

Revenue 4,832 18,520

PAT 508 4,257

Market Capitalization 28,662 1,44,693

Reliance Communications

Mobile Subscriber base (Crs) 0.78 3.36

Revenue NA 14,795

PAT NA 3,060

Market Capitalization NA 85,874

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A joint venture between SBI and Société Genéralé Asset Management
A joint venture between SBI and Société Genéralé Asset Management
Power and Engineering companies
Power and Engineering companies (Rs crs)
BHEL FY04 FY07
Sales 8,355 17,722
PAT 822 2,365
Order Book 23,650 54,000
Market Capitalization 14,796 55,334
Siemens
Sales 2,246 8,906
PAT 169 537
Order Book 2,133 11,000
Market Capitalization 3,250 18,388
NTPC
Revenue 18,868 30,639
PAT 5,261 6,726
Market Capitalization 62,294* 1,23,476
* As of November 2004

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A joint venture between SBI and Société Genéralé Asset Management
A joint venture between SBI and Société Genéralé Asset Management
How is this Fund different
from other Infrastructure Funds?
 The only close ended Infrastructure Fund

 Backed by the expertise of SBI Funds Management

 Out of 260 stocks under in house coverage almost 100 are already within
the investment universe of SBI Infrastructure Fund – Series I

 Being a close ended fund it can invest up to 10% of the assets in unlisted
or private equity if attractive options are available. Open Ended funds can
invest only up to 5%

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A joint venture between SBI and Société Genéralé Asset Management
A joint venture between SBI and Société Genéralé Asset Management
The main sectors where
we would invest would include:
Airports Metals/Mining/Minerals

Banking & Financial Services Oil & Gas and Allied Industries

Cement & Cement Products Petroleum & Related Industry

Coal Pipelines

Construction & related Industry Ports

Electrical & Electronic components Power and Power Equipment

Energy (including non-conventional


Telecom
energy)

Housing Transportation

Industrial Capital Goods Urban Infrastructure

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A joint venture between SBI and Société Genéralé Asset Management
A joint venture between SBI and Société Genéralé Asset Management
Indian Infra spending hold the key
Hyderabad Ph-I Mumbai- Ph
Airports I 35 non-metros
Bangalore Ph-I Delhi- Ph I

Power ~50% jump (66,000 MW) in


installed base in 5 yrs !!

Reliance Adani 2015-


SEZs 2012-15 2016
DLF 2010-2015
Unitech 2010-2015

GQ 6 laning
Roads NHDP - Ph III

Rural NSEW
roads Corridor

Overall capacity to Further capacity


Ports almost double to increase at all major
800MTin 6 yrs! ports

Freight Corridors
Delhi-Mumbai,
Rail Delhi-Howrah

KG Basin
Energy phase-I

General Commonwealth
Other Elections Games
National VAT
Events
2008 2009 2010 2011 2012 2013 2014 2015

* All projects - estimated year of completion Source: Enam

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A joint venture between SBI and Société Genéralé Asset Management
A joint venture between SBI and Société Genéralé Asset Management
Risks
 Political Risk: Infrastructure projects are driven by government initiative,
a lack of political will by the government or its regulatory mechanism could
throw the entire process out of gear.

 Interest Rate Risk: Increase in interest rates may have a bearing on the
Internal Rate of Return (IRR) of infrastructure projects.

 Execution Risk: Inability of companies to execute projects in time can


delay the realisation of revenue and profits – may also entail penalty.

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A joint venture between SBI and Société Genéralé Asset Management
A joint venture between SBI and Société Genéralé Asset Management
What is it all about ??

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A joint venture between SBI and Société Genéralé Asset Management
A joint venture between SBI and Société Genéralé Asset Management
Basic Features
Investment Objective

To provide investors with opportunities for long-term growth in capital through


an active management of investments in a diversified basket of equity stocks
of companies directly or indirectly involved in the infrastructure growth in the
Indian economy and in debt & money market instruments.

Asset Allocation

Type of Instrument Normal Allocation Risk Profile


(% of Net Assets)
Equities and equity related instruments 65% - 100% High
including derivatives
Debt and Money Market Instruments 0% - 35% Medium to Low

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A joint venture between SBI and Société Genéralé Asset Management
A joint venture between SBI and Société Genéralé Asset Management
Investment Strategy
 A top down view will be formed to identify and create a diversified portfolio
of companies which present the most attractive investment opportunity

 Within each sector, individual stocks would be identified based on their


present status and future earnings potential to provide investors with an
optimum risk adjusted long term return.

 The fund will have no sectoral or market capitalization bias.

 This will lead to a sharper coverage of companies across sectors leading to


potential growth stocks for investment.

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A joint venture between SBI and Société Genéralé Asset Management
A joint venture between SBI and Société Genéralé Asset Management
Scheme Key Features
 New Fund Offer Period: 11th May 2007 – 8th June 2007
 Scheme reopens for continuous repurchase on 6th July 2007
 Close-ended fund with a 3 year tenure
 Minimum Investment – Rs. 5000 and in multiples of Rs. 1
 Dividend and Growth options available. Payout facility available only during the close-
ended tenure of the scheme
 Dividends will be completely tax-free. Long term capital gains to be completely tax-free.
Short term capital gains to be taxed at 10% (plus applicable surcharge and cess)
 Entry load – The scheme will not charge any entry load during the NFO
 Exit Load – Nil. (Investor will have to bear the proportionate unamortized initial issue
expenses for exiting during the close-ended tenure of the scheme)
 Automatic conversion into open-ended scheme on maturity.
 SIP/SWP/ STP facilities will be made available only after the scheme goes open-ended.
 Benchmark – BSE 100 Index

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A joint venture between SBI and Société Genéralé Asset Management
A joint venture between SBI and Société Genéralé Asset Management
Why SBI Mutual Fund ?

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A joint venture between SBI and Société Genéralé Asset Management
A joint venture between SBI and Société Genéralé Asset Management
The best of both worlds

100%

SBI Mutual Fund Trustee Company Pvt. Ltd

63% 37%

SBI Funds Management Pvt. Ltd


(Asset Management Company)

Mutual Fund PMS Offshore

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A joint venture between SBI and Société Genéralé Asset Management
A joint venture between SBI and Société Genéralé Asset Management
A Local Expert
 Most Preferred Mutual Fund awarded by CNBC Awaaz

 One of the premier fund houses in the country managing assets over
Rs 18338 crores as on April 30, 2007 Source: AMFI India

 SBI MF has the trust of more than 35 lac investors

 A full fledged investment, risk management and compliance team

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A joint venture between SBI and Société Genéralé Asset Management
A joint venture between SBI and Société Genéralé Asset Management
Extensive Presence

 26 Investor Service Centres


 28 Investor Service Desks
 40 District Organizers
 2 Overseas Franchisees

OVER 100 POINTS OF PRESENCE!!!

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A joint venture between SBI and Société Genéralé Asset Management
A joint venture between SBI and Société Genéralé Asset Management
Our Achievements

LIPPER AWARDS 2007


6 AWARDS AT CNBC TV-18 CRISIL MUTUAL FUND OF 3 AWARDS
THE YEAR AWARDS, INCLUDING MUTUAL FUND OF
THE YEAR AWARD IN THE FUND HOUSE CATEGORY

ICRA MUTUAL FUND AWARDS 2007


3 GOLD AWARDS CNBC AWAAZ – CONSUMER AWARD

Please refer last slide for scheme details and risk factors
A joint venture between SBI and Société Genéralé Asset Management
A joint venture between SBI and Société Genéralé Asset Management
To Sum Up
 Despite 50 years of planned development, massive initiatives in
infrastructure sector are being taken only now
 A concrete step is now being taken in the direction by way of Public Private
Partnership (PPP), which we believe would provide the much needed skills
and resources for infrastructure development – also opens new investment
opportunities.
 The size of the opportunity is very large and the companies have a scope
to grow their scale of business exponentially from the current levels.
 This can be captured by the investors in a fund dedicated to invest in this
theme and backed by the expertise of the leading fund house in equity
investments.

Please refer last slide for scheme details and risk factors
A joint venture between SBI and Société Genéralé Asset Management
A joint venture between SBI and Société Genéralé Asset Management
INVEST IN INDIA’S FUTURE
INVEST IN

Please refer last slide for scheme details and risk factors
A joint venture between SBI and Société Genéralé Asset Management
A joint venture between SBI and Société Genéralé Asset Management
Disclaimer
Type of Scheme: 3 year close-ended growth scheme Investment Objective: To provide investors with opportunities for long-
term growth in capital through an active management of investments in a diversified basket of equity stocks of companies
directly or indirectly involved in the infrastructure growth in the Indian economy and in debt & money market instruments.
Asset Allocation: Equities and equity related instruments including derivatives: 65 % – 100 %, Debt and Money Market
Instruments: 0 % - 35 %. Tenure: 3 year close-ended growth scheme with an automatic conversion to open-ended scheme on
maturity. Load Structure (During NFO): Entry Load will not be charged. Exit Load – Nil. (Investor will have to bear the
proportionate unamortized initial issue expenses for exiting during the close-ended tenure of the scheme) Terms of issue –
Repurchase facility at applicable repurchase NAV on all business days. Risk Factors: Mutual Funds and Securities Investments
are subject to market risks and there is no assurance or guarantee that the scheme’s objectives will be achieved. As with any
investment in securities, the NAV of the Magnums / Units issued under the scheme may go up or down depending upon the
factors and forces affecting the securities market. Past performance of the Sponsors/AMC/Mutual Fund/Scheme(s)/Plan(s) and
their affiliates does not indicate the future performance of the Scheme(s) of SBI Mutual Fund. SBI Infrastructure Fund –
Series I is only the name of the scheme and does not, in any manner, indicate either the quality of the scheme or its future
prospects and returns. SBI Infrastructure Fund – Series I would be investing in equity & equity related instruments including
derivatives, debt and money market instruments (such as call money market, term/notice money market, repos, reverse repos
and any alternative to the call money market as may be directed by the RBI). The liquidity of the scheme's investments is
inherently restricted by trading volumes and settlement periods. In the event of an inordinately large number of redemption
requests, or of a restructuring of the scheme's investment portfolio, these periods may become significant. The scheme (at
portfolio level) to have >/= 20 investors and no investor to account for > 25% of its corpus, at the time of closure of NFO
period else the AMC shall comply with the specified SEBI guidelines in the matter. The Mutual Fund is not assuring any returns
nor is it assuring that it will make periodic distributions by way of dividends. Statutory Details: SBI Mutual Fund has been set
up as a Trust under The Indian Trust Act, 1882. State Bank of India (‘SBI’), the sponsor is not responsible or liable for any loss
resulting from the operation of the schemes beyond the initial contribution made by it of an amount of Rs. 5 lacs towards
setting up of the Mutual Fund. Asset Management Company- SBI Funds Management Private Limited (A joint venture with
SBI and Société Générale Asset Management). Trustee Company: SBI Mutual Fund Trustee Company Private Limited A copy of
the offer document and key information memorandum along with the application form may be obtained from our ISC’s, ISD’s,
SBI MF Corporate office, SBI MF agents or can be downloaded from our website-www.sbimf.com. Mutual Fund investments
are subject to market risks. Please read the offer document carefully before investing.

This report has been prepared by SBI Funds Management Pvt. Ltd. (Investment Managers for SBI Mutual Fund) and is meant for
the recipient for use as intended and not for circulation. The information contained herein is from the public domain or sources
considered reliable. While reasonable care has been taken to ensure that the information given is at the time believed to be fair
and correct and opinions based thereupon are reasonable, due to the very nature of research it cannot be warranted or
represented that it is accurate or complete and it should not be relied upon as such. Neither SBI Funds Management Private
Limited, nor any person connected with it, accepts any liability arising from the use of this information. The recipient of this
material should rely on their investigations and take professional advice before making any investment. Mutual Fund
investments are subject to market risks. Please read the offer document of the schemes carefully before investing.

Please refer last slide for scheme details and risk factors
A joint venture between SBI and Société Genéralé Asset Management
A joint venture between SBI and Société Genéralé Asset Management