SBI Magnum Equity Fund
Nature of fund:
Open-ended Equity Fund.
This fund’s objective is to provide long-term capital appreciation through investment in high growth companies. It also brings with it the liquidity of an open-ended scheme by investing predominantly in equities and the balance in debt and money market instruments.
|Inception date||1st January, 1991.|
|CRISIL rank||CRISIL Rank 3 in the Large Cap category.|
•SBI Magnum Equity Regular Growth Fund.
•SBI Magnum Equity Regular Dividend Fund.
•SBI Magnum Equity Direct Growth Fund.
•SBI Magnum Equity Direct Dividend Fund.
•For exit within 1 year from the date of allotment = 1.00%.
•For exit after 1 year from the date of allotment = None.
•Minimum Rs.1,000 in multiples of Re.1 for a minimum of 6 months.
•Minimum Rs.500 in multiples of Re.1 for a minimum of 1 year.Quarterly:
•Minimum Rs.1,500 in multiples of Re.1 for a minimum of 1 year.
|Product label – Risk and target investors||Moderately High Risk.
Target investors are those who are seeking:
•Long term capital appreciation.
•Investments in a portfolio of high growth companies.
•Deductions under Section 80C of the Income Tax Act, 1961.
•Liquidity of an open-ended scheme through investments in equities.
|Benchmark||CNX Nifty Index.
The CNX Nifty Index is a highly diversified stock index consisting of 50 stocks across 23 sectors of the economy. It’s used to benchmark fund portfolios, index based derivatives and index funds.
|SWP||Yes. Minimum withdrawal of Rs.500.|
|Redemption||Redemption time – 10 days.|
|Taxation (on investment and on redemption)||The taxation implications of being associated with a mutual fund must be thoroughly discussed with your tax advisor.|
Mr. R Srinivasan
With over 12 years of experience with leading brokerage companies like Future Capital Holdings, Principal PNB asset management, Motilal Oswal, Sunidhi Consultancy and Blackstone, Mr. R Srinivasan has brought a wealth of knowledge and experience to SBI Mutual Funds in 2009. He was promoted to the Head of Equity in 2011. He is a post graduate in commerce and has a master’s degree in finance from the University of Mumbai.
Investment philosophy or strategy
- This fund invests 90% - 100% of its assets in large cap stocks.
- All large cap stocks are from the top 100 companies in terms of market capital rank.
- Aims to lie between the 15th and 45th percentile of the large capital peer group.
- Aims to target a benchmark coverage of around 50%, which is the sum of the lower of the portfolio or the benchmark weight of stocks owned.
- High on concentration as compared to the concentration on the benchmark.
- Max of 10% cash.
Portfolio – Top 10 Holdings
|Equity||Sector||Percentage of AUM|
|HDFC Bank||Banking / Finance||9.66%|
|Coal India Ltd.||Metals & Mining||5.90%|
|State Bank of India||Banking / Finance||5.13%|
|Kotak Mahindra Bank Ltd.||Banking / Finance||4.95%|
|Maruti Suzuki India||Automotive||4.79%|
|Tata Consultancy Services||Information Technology||4.56%|
|AUM (as on 30th June, 2015)||Rs.1,325.42 crores|
|NAV (as on 31st August, 2015)|
•SBI Magnum Equity Regular Growth Fund = 73.1679.
•SBI Magnum Equity Regular Dividend Fund = 31.667.
•SBI Magnum Equity Direct Growth Fund = 74.4138.
•SBI Magnum Equity Direct Dividend Fund = 36.7476.
|Returns and benchmark comparison|
Expert view of the fund + outlook
Managed by Mr. R Srinivasan, the man who brought SBI mutual funds into the limelight, this fund is one of the better performers in the category. The fund has a huge potential to even be the best in the category under Mr. R Srinivasan’s management. The historical returns for this fund have always been above the category average and one can continue one’s investments in this fund. Bear in mind, however, that experts suggest that not more than 30% of your entire investment portfolio must be invested here.
How to apply – online + distributors
You can apply online through the SBI mutual fund website. Alternatively, you can approach the bank directly at any one of the banks many Investor Service Centres. CAMS has also set up service centres for the convenience of investors and intermediaries. Applying online has its own advantages, such as speed and efficiency, but people who approach the bank directly have a better chance of knowing all possible details about the scheme as the bank representative will be available to them.
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