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SBI Mutual Fund has introduced a wrapper called ‘multiselect’ through which investors can choose a specific strategy and invest across multiple schemes.
Wrappers give an option to investors to invest in multiple schemes focussing on a particular theme or strategy. For instance, a wrapper focussing on smart beta ETFs will invest in couple of factor ETFs. A few companies like smallcase offer such wrappers.
While the MF industry offer FOFs that invest in domestic funds, it comes with a cost in the form of TER, which is over and above the TER of underlying schemes. Simply put, wrappers eliminate this cost.
To start with the company has launched 2 such wrappers – Unidiverse (investing across SBI Contra Fund, SBI Large and Midcap Fund, SBI Focused Equity Fund and SBI Mangnum Midcap Fund) and Trinity (investing across SBI Magnum Global Fund, SBI Banking and Financial Services Fund and SBI Infrastructure Fund).
The SBI MF spokesperson said, "Unidiverse is a combination of schemes which have the least portfolio overlap between them. This gives investors the opportunity to benefit from different fund management styles and helps in diversification within the fund house offerings. The Trinity wrapper gives investors a flavour of the manufacturing sector and the long term growth potential it offers."
The minimum application amount changes with number of schemes. For example, the minimum lumpsum application size for Trinity plan, which has three schemes is Rs.15000 (Rs.5000 each) and Rs.1500 (Rs.500 each) in SIPs.
MFDs can sell these wrappers through SBI MF’s partner portal.
