SBI Magnum Global Fund-Reg(D)

Performance

SBI Funds Management Pvt. Ltd., which was formed in a partnership between SBI and France-based AMUNDI, is one of the largest asset management firms in the country. The company, which invests in domestic mutual funds and offshore funds, manages the investments of more than 5.4 million customers. The asset management firm also offers portfolio management and advisory services and the option to invest in Alternative Investment Funds.

SBI Magnum Global Fund is an open-ended equity scheme that invests in firms that follow the MNC theme. The Dividend option under the Regular Plan of this fund will help investors receive regular payouts during the investment tenure in the form of dividends. Thus, the Dividend option is ideal for investors who are in need of a steady flow of income, and not just capital appreciation during the investment tenure.

Investment Objective of SBI Magnum Global Fund – Regular Plan – Dividend

This scheme aims to offer capital appreciation in the long-term for investors by making investments in a diversified portfolio that mainly comprises of multinational corporations or MNCs.

Key Features of SBI Magnum Global Fund – Regular Plan – Dividend

A few important features of the SBI Magnum Global Fund – Regular Plan – Dividend are mentioned in the table below:

Investment Amount for SBI Magnum Global Fund – Regular Plan – Dividend

*Note: Investors will be required to maintain the specified minimum balance in their accounts. If the balance falls under the minimum redemption amount due to repurchase, the units of the scheme may be compulsorily redeemed at the applicable repurchase price.

Asset Allocation for SBI Magnum Global Fund – Regular Plan – Dividend

Who can Invest in SBI Magnum Global Fund – Regular Plan – Dividend

The following entities can invest in this scheme:

• Adult Indians either on a single or joint basis
• Charitable or religious trusts, endowments of private trusts, Wakfs, and authorised private trusts
• Minors through their parents or legal guardians
• Partnership firms
• Bodies corporate, association of persons, companies, public sector undertakings, and registered societies
• Hindu Undivided Families (HUFs) through their Kartas
• Non-Resident Indians and Persons of Indian Origin on a non-repatriation or full repatriation basis
• Banks and financial institutions
• Qualified Foreign Investors
• Industrial and scientific research organisations
• Foreign Institutional Investors that are registered with the Securities and Exchange Board of India
• Foreign Portfolio Investors
• Gratuity/pension/provident funds
• Navy, army, air force, and other para-military institutions
• International multilateral agencies that are approved by the RBI/GoI
• A mutual fund by way of its schemes

NAV Disclosure and Benchmark for SBI Magnum Global Fund – Regular Plan – Dividend

The net asset value of the scheme will be calculated and declared by the asset management company on every business day. The NAV will be published in a minimum of two daily newspapers. Further, the NAV will also be declared on www.amfiindia.com and www.sbimf.com. The formula to calculate the NAV is as follows:

NAV = Fair/Market Value of a Scheme’s Investments + Current Assets – Current Liabilities and Provision/Total Number of Units that are outstanding under the Scheme as on the Valuation Date.

Given that this is an open-ended scheme, unitholders can redeem or make fresh purchases at the NAV-based price on all business days. The benchmark index of this scheme is Nifty MNC Index.

SBI Magnum Global Fund – Regular Plan – Dividend Fund Manager

The fund manager for this fund is Mr. Anup Upadhyay. He has been in charging of managing investments under this fund since May 2018.

Investment Restrictions of SBI Magnum Global Fund – Regular Plan – Dividend

A few investment restrictions that are applicable to this scheme are as follows:

• The scheme will not invest over 10% of its net asset value in debt instruments such as non-money market instruments and money market instruments that are issued by a single issuer, if a credit rating agency has rated them not below investment grade.
• Not more than a total of 10% of a scheme’s net asset value will be invested in unrated debt securities and instruments that are issued by a single issuer. Investments in such instruments cannot exceed 25% of the total net asset value of the scheme.
• Debentures, regardless of whether the maturity period is under or over one year, will have the same investment restrictions as debt instruments.
• The scheme can invest in any other scheme offered by the same mutual fund house or may also invest in other mutual funds.
• For investments that are of a long-term nature, the mutual fund will get the securities transferred or purchased in the mutual fund’s name on account of the given scheme.
• A mutual fund scheme cannot invest over 10% of its total net asset value in equity instruments of any firm.
• A mutual fund scheme cannot invest over 5% of its overall net asset value in unlisted equity instruments.

*Note: The above-mentioned list of investment restrictions is not exhaustive. The complete list of investment restrictions can be found in the Scheme Information Document.

Dividend Policy of SBI Magnum Global Fund – Regular Plan – Dividend

Under the Dividend option of this fund, the trustees may declare dividends if the distributable surplus is available under the scheme.

Other facilities under SBI Magnum Global Fund – Regular Plan – Dividend

• Switchover Facility: Under this facility, unitholders will be given the option to switchover between the scheme’s two options at the NAV-based prices.
• Top-Up SIP: Under this option, investors are given the choice to increase the SIP instalment amount by a fixed sum at certain intervals during the investment tenure.
• Capital Appreciation Systematic Transfer Plan: Through this facility, investors will be able to transfer the capital appreciation from the source/invested scheme into another target/open-ended scheme.

Why you should Invest in SBI Magnum Global Fund – Regular Plan – Dividend

Any individual who is looking for long-term capital appreciation by way of investing in equity securities of multinational corporations can invest in this scheme. This scheme is best suited to those investors who wish to earn market-linked returns by investing in a scheme with a high-risk profile.

GST rate of 18% applicable for all financial services effective July 1, 2017.