SBI Multicap NFO garners Rs 7,500-8,000 crore; biggest mop-up in its space

SBI Multicap Fund which closed its new fund offer (NFO) on Monday has collected Rs 7,500-8,000 crore in the fund. Officials in the industry stated that this is the highest ever collection seen in the multicap schemes.

SBI Multicap Fund, an open-ended equity scheme will be investing in a mix of best ideas across large, mid, and small cap companies identified through a robust research process. The NFO opened on February 14, 2022 and closed on February 28, 2022.

The benchmark index of the Fund is the NIFTY 500 Multicap 50:25:25 TRI. The fund combines the strength of high conviction stock ideas of the sector analysts that will be selected from the fund house’s active coverage universe (~350 companies).

Multicap schemes are mandated to invest at least 25 per cent of the corpus in large-, mid-, and small-cap stocks each. Before the changes in the regulations multicap funds were free to invest across the market cap depending on the fund manager’s outlook. But later changes were made so that funds remain ‘true to their label’.  

In the recent past this is the second time the fund house has collected such a huge amount. Earlier in August 2021, the SBI MF had raised a record Rs 14,551 crore in its balanced advantage fund.