SBI Gold Fund

All Cap

Commodities

India Multi Asset

Others

Aggressive growth Investor Profile

Investor Profile

4–7 yearsInvestment Horizon

HNI, UHNI, Retail Investor, Mass AffluentTarget Segments

SEBI registered equity mutual fund suitable for all investor categoriesRegulatory Fit

Sbi Gold Fund Growth invests in precious metals and commodities for portfolio diversification.

What This Strategy Does

SBI Gold Fund Regular Plan Growth is a Precious Metals fund which captures India's growing demand for gold through direct investments in physical gold, deploying capital across the precious metals sector to achieve broad-based exposure to gold price movements.

CW Expert Research Notes

Precious Metal Exposure

The fund provides direct exposure to precious metals, exhibiting resilience across cycles with consistent participation in upside and downside protection during market volatility.

Commodity-Focused Strategy

The fund's investment process centers on allocating assets entirely to physical gold, differentiating it from peers through its singular focus on the precious metals commodity.

Portfolio Diversification Potential

As a non-traditional asset class with low correlation to equities and bonds, the fund could serve as a portfolio diversifier, mitigating risk from potential equity market downturns or rising inflation.

Performance and Risk Analysis

Historical returns, volatility patterns, and how this fund has performed relative to its benchmark.

Fund Performance

0.0% AnnuallyAlpha

+19.4% vs +9.9% benchmarkSince Inception

+35.4% vs +6.3% benchmark3Y Annualized

+24.9% vs +6.5% benchmark5Y Annualized

SBI Gold Fund

Benchmark Index

Benchmark Performance Comparison

Sbi Gold Fund

NIFTY 50 + FD Returns

Risk Profile

Standard Deviation20.0%

Maximum Drawdown-4.2% | Nov 2024

Sharpe Ratio2.95

Detailed Risks

Market Risk

Recession fears could dampen gold demand, breaching portfolio's macro hedge.

Liquidity Risk

Concentrated precious metals exposure risks liquidity shocks during volatility spikes.

Concentration Risk

100% allocation to gold mining equities amplifies single-sector drawdown risk.

Specific Strategy Risk

Regulatory scrutiny on gold pricing mechanisms could disrupt portfolio holdings.

Strategy Details

A closer look at the investment thesis, portfolio construction, and current holdings.

Core Investment Theme

Provides exposure to gold, a traditional safe-haven asset that can hedge against inflation and economic uncertainty. Gold has historically maintained its purchasing power during periods of market stress, acting as a portfolio diversifier.

Broader Market View

Market Outlook

The equity market appears to be in the early stages of a recovery phase, offering an attractive entry point as consumption and earnings normalize. Sectors like consumer discretionary, financials, and industrials stand to benefit from reviving domestic demand and a potential capex revival, though risks like margin pressures remain.

Why This Strategy is Attractive Now

This strategy seems well-positioned for the current environment with exposure across consumer cyclicals, financials, and technology. The portfolio's diversification across around 70 holdings, including market leaders, coupled with a moderate beta and flexibility, appears conducive to risk-adjusted participation in the ongoing recovery.

Investment Style & Process

Investment Style

The portfolio exhibits characteristics of a Quality Growth strategy, emphasizing companies with durable competitive advantages, consistent earnings growth, and reasonable valuations relative to their growth prospects.

Why it Makes Sense

A Quality Growth approach can provide exposure to secular growth trends while moderating valuation risk, an appealing balance amid an uncertain economic backdrop with pockets of elevated valuations.

High-Level Investment Process

Sourcing: The strategy appears to favor companies with sustainable competitive advantages, pricing power, and strong balance sheets, sourced through fundamental research and industry expertise. Selection: The process suggests a preference for businesses capable of compounding earnings at an attractive rate for an extended period, with a focus on cash flow generation and return on invested capital. Construction: Portfolio construction is consistent with a diversified, conviction-weighted approach that balances risk management with the pursuit of alpha through active position sizing.

Portfolio Holdings Overview

SectoralAllocation

Financial Services100%

Top Stock Holdings

CompanySectorAllocation

SBI Gold ETFUtilities100.00%

TrepsUtilities0.38%

Net Receivable / PayableUtilities-0.39%

Operational & Regulatory Details

What it costs to invest, transaction mechanics, and regulatory disclosures you should know.

Costs and Fees

Total Expense Ratio (TER)0.42%

Exit Load1

Regulatory & Tax Information

INF200K01HA1

ISIN

DailyDealing Frequency

LTCG | >1Year 12.5%% on gain above 1.25 Lakh

STCG | <1Year 20%%

Tax Implications (India)