SBI Magnum Midcap Fund

Nature of fund:

Open-ended Growth scheme.

Investment objective:

The SBI Magnum Midcap Fund aims to provide investors with the opportunity for long term capital growth with the liquidity of an open ended scheme. The scheme aims to achieve this through investments in a diversified pool of equity stocks of Midcap companies. The market capitalization of the companies the fund plans to invest in should be lower than the last stock in the CNX Nifty Index less 20% (upper range) and over Rs.200 crores.

Fund information:

Inception date 29th March, 2005
CRISIL rank

CRISIL Rank 2 in the Small and MIdcap equity funds category.

CRISIL Rank 2 in the Consistent Performers – Equity funds category.

Plans

•Regular.

•Direct.

Options

•Growth.

•Dividend.

Schemes

•SBI Magnum Midcap Regular Growth Fund.

•SBI Magnum Midcap Regular Dividend Fund.

•SBI Magnum Midcap Direct Growth Fund.

•SBI Magnum Midcap Direct Dividend Fund.

Entry load None.
Exit load

•For exit within 1 year from the date of allotment = 1.00%.

•For exit after 1 year from the date of allotment = 0.

Minimum investment

•Rs.5,000 (in multiples of Re.1).

•Additional Investment: Rs.1,000 (in multiples of Re.1).

SIP Monthly

•Minimum Rs.1000 (in multiples of Re.1) thereafter for minimum six months.

•Minimum Rs.500 (in multiples of Re.1) thereafter for minimum one year.

Quarterly

•Minimum Rs.1500 (in multiples of Re.1), thereafter for minimum one year.

Product label – Risk and target investors Moderately High Risk. Target investors are those who seek:

•Long term growth in investments.

•Investments predominantly in equity stocks of Midcap companies.

Benchmark S&P BSE Midcap
SWP Yes.

•Rs.500 per month or per quarter.

STP Yes
Redemption Within 10 business days.
Taxation (on investment and on redemption) The tax implications of being associated and invested in this mutual fund must be discussed at length with your tax advisor.

Fund manager

Ms. Sohini Andani

With over 11 years of experience in research on the selling side, Ms. Sohini has come a long way since she joined SBI as the Head of Research in 2007. She was since promoted to portfolio manager in 2010, and ever since has been accredited with making SBI mutual funds a highly profitable product line. She has previously worked with ASK Raymond James, KR Choksey Shares, Advani Share Brokers, LKP Shares and Securities and has brought a wealth of experience over to SBI, where she’s using it to make the best use of investments.

Ms. Andani currently manages 7 SBI mutual funds whose investment portfolios range from small to large cap companies. All these funds are doing better than their benchmarks and catefories.

Investment philosophy

  • 65% - 100% of the funds are invested in equities of midcap companies.
  • Invests selectively in small cap stocks to generate Alpha.
  • Invests selectively in large cap stocks to keep the fund liquid.
  • The fund follows a bottom-up strategy focussing on generating returns in a 3 year timeframe.
  • SBI Magnum Midcap allows for a maximum of 20% exposure to large cap.
  • Agnostic sector.

Portfolio – Top 10 Holdings As on July 31st, 2015:

Equity Sector Percentage of AUM
Strides Arcolab Pharmaceuticals 5.17
Sharda Cropchem Ltd. Chemicals 3.90
Britannia Industries Food & Beverage 3.78
Cholamandalam Investments & Financial Company Ltd. Banking / Finance 3.71
UFO Moviez India Ltd. Media 3.10
Mahindra & Mahindra Financial Services Ltd. Banking / Finance 2.98
Bajaj Finance Company Banking / Finance 2.80
The Ramco Cements Ltd. Cement 2.78
Greaves Cotton Company Engineering 2.66
VA Tech Wabag Ltd. Engineering 2.60

Risk measures:

Sharpe Ratio 1.90
Alpha N/A
Beta 0.74
Standard deviation 15.51%

Performance

AUM (as on 30th June, 2015) Rs.870.88 crores.
NAV (as on 2nd September, 2015)

•SBI Magnum Midcap Regular Growth Fund = 58.3462.

•SBI Magnum Midcap Regular Dividend Fund = 27.3872.

•SBI Magnum Midcap Direct Growth Fund = 59.4419.

•SBI Magnum Midcap Direct Dividend Fund = 38.6220.

Returns and benchmark comparison
Date Scheme returns S&P BSE Midcap Index S&P BSE Sensex
Since Inception (till 30th June, 2015) CAGR Returns: 18.89% PTP Returns: Rs.59,004 CAGR Returns: N/A PTP Returns: N/A CAGR Returns: 15.44% PTP Returns: Rs.43,627
30th June, 2014- 30thJune, 2015 41.43 23.32 9.31
30th June, 2013- 30thJune, 2014 68.76 39.08 31.03
30th June, 2012- 30thJune, 2013 15.57 10.56 11.28
Expenses
Daly Net Assets SBI Magnum Midcap Fund expenses
First 100 crores 2.70%
Next 300 crores 2.45%
Next 300 crores 2.20%
Balance Assets 1.95%

Expert view of the fund + outlook

This fund, managed by Ms. Sohini Andani, has not performed as well as the other funds under her management. The fund’s performance is not as convincing as it should be, and it remains behind its peers and benchmark. If you already have invested in this fund, it’s time to jump ship and find a better performing fund to invest in. New investors strike this fund off your list of potential first investments, as it will not satisfy you.

How to apply – online + distributors

You can apply online through the SBI mutual funds website, or alternatively call the SBI mutual funds office and they will guide you through a step-by-step procedure on how to invest. At any stage during your research on the SBI website, scroll to the top right of the screen and you will find a button that you can click on to express your interest in investing in the fund. Also, if this is your first investment, you can easily find a better and more rewarding fund to invest in on the SBI mutual funds website itself. You can physically walk in to the SBI branch and fill up your KYC forms after which you will be directed on how to invest through the mutual funds investment desk at the branch. There’s a 24/7 dedicated toll free number you can call, and you can also send an SMS showing your intent to invest. All these details of the number to call or SMS can be found on the SBI mutual funds website. You can also contact any one of SBI’s Investor Service Centres.

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Display of any trademarks, tradenames, logos and other subject matters of intellectual property belong to their respective intellectual property owners. Display of such IP along with the related product information does not imply BankBazaar's partnership with the owner of the Intellectual Property or issuer/manufacturer of such products.

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