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 India’s largest mutual fund houses, SBI PMS benefits from the substantial research infrastructure, broker access, corporate relationships, and distribution strength of SBI Mutual Fund. While the parent AMC enjoys strong pedigree and scale in the mutual fund space, the PMS division remains an AMC-driven offering and is yet to establish strong standalone credentials. This is reflected in the relatively limited scale of its discretionary equity PMS assets and the absence of a distinct CIO-led identity typical of leading PMS platforms.
PMS Investment Philosophy
SBI PMS follows a structured, framework-driven investment philosophy centred around business quality, management assessment, and valuation discipline. The philosophy is process-oriented rather than personality-driven and avoids speculative or momentum-led approaches.
Core Philosophy Framework
- Business: Focus on companies with economic moats, large and scalable opportunity size, strong return on capital, pricing power, appropriate capital intensity, and manageable disruption risk.
- Management: Preference for management teams with integrity, proven execution capability, skin in the game, transparency, and accountability to shareholders.
- Valuation: Valuation-driven approach using Discounted Cash Flow methodologies, with emphasis on intrinsic value and relative valuation discipline, while explicitly avoiding “bigger fool” theories, market timing, or technical trading.
Investment Framework
SBI PMS employs a dual investment framework that balances absolute return objectives with relative return considerations, depending on market conditions and opportunity sets.
- Absolute Return Framework: Implemented through the BMV framework, focusing on business quality, management strength, and valuation comfort to generate absolute returns over a market cycle.
- Relative Return Framework: Incorporates incremental fundamental improvements, rising market expectations and momentum, and relative valuation comparisons to benchmark opportunities.
Suitable For
Not a recommended PMS provider for investors seeking a differentiated, CIO-driven, high-conviction discretionary equity PMS with strong standalone pedigree.
Investment team
Gaurav Mehta | 2-star rated FM
CIO- Alternatives | 18 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
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