SBI Funds PMS
PMSIME's View on SBI Funds PMS
AMC View
We do not recommend MF-promoted PMS's, as they are often a side-business of the larger MF with uncertain long-term stability of the investment team. While mutual fund strengths may help PMS scale, it may not be valuable for investors seeking alternative investments. SBI PMS is still in early stages compared to other MF-promoted PMS providers.
AMC Pedigree
SBI Mutual Fund is a leading asset manager in India, but its PMS division has not yet established itself as a credible standalone entity due to limited scale in retail discretionary equity assets.
Team Pedigree
We do not usually recommend Mutual Fund promoted Portfolio Management Services (PMS) because it is often seen as a secondary focus compared to the main Mutual Fund business. This is evident in the case of Aparna Shekra, a PMS veteran, who was transferred to the Mutual Fund's international business, while a less experienced analyst was moved to the fund management team.
Investment Philosophy
SBI PMS has a broad investment philosophy, with a more clearly defined strategy in their Growth with Values Portfolio.
PMS Background
As part of one of the largest Mutual Fund Houses, SBI PMS benefits from the substantial research, broker & corporate access and distribution strengths of the Mutual Fund.
AMC Driven PMS House SBI Mutual Fund has a highly pedigreed asset managers however, their PMS division is yet to prove its standalone credentials which is reflected due to the lack of scale in its retail discretionary equity assets.PMS Investment Philosophy
Framework
- Business: Focus on businesses that have an economic moat, size of opportunity, return on capital, pricing power, capital intensity, risk of disruption.
- Management: Seek for companies that have integrity while managing, having a good track record, skin in the games and are transparent and accountable.
- Valuation: Valuing companies using Discounted Cash Flow, looking for firms that have relative valuations, excluding- 'bigger fool', market timing, technical analysis.
Investment Framework
SBI PMS follows an Absolute Return Framework and Relative Return Framework
- Absolute Return Framework- Follow the BMV framework.
- Relative Return Framework- This framework takes into consideration incremental fundamental change, Rising market expectations momentum and relative valuations.
Investment team
Gaurav Mehta | 2-star rated FM
CIO- Alternatives | 17 yrs Experience | 4 yrs at current firm
Past Experience: Analyst & Fund manager(SBI mutal fund)
Gaurav Mehta joined SBI Funds Management (SBIFM) in November 2018 as an Equity Analyst in SBI Mutual Fund and subsequently moved to having fund management responsibilities as well. With effect from October 2021, Gaurav is now CIO – Alternatives where he is responsible for managing equity portion of the Portfolio Management Services & Alternative Investment Funds business. Gaurav has over 15 years’ experience in Indian Financial Markets having worked with Ambit Investment Advisors, Ambit Capital, and Edelweiss Capital. Gaurav has completed B.Tech (Chemical Engineering) from IIT, Bombay and holds a post graduate diploma in Management from IIM, Lucknow. Gaurav is also a Charter holder of the CFA Institute, USA
