SBI Magnum Multicap Fund: Change in strategy is paying off

ET Wealth collaborates with Value Research to analyse top mutual funds. We examine the key fundamentals of the fund, its portfolio and performance to help you make an informed investment decision.

SBI MAGNUM MULTICAP

HOW HAS THE FUND PERFORMED? ( As on 27 Dec, 2016)

The fund has a poor long-term track record owed to a sub-par performance in the initial years. With a 10-year return of 8.2%, the fund has underperformed the category (average return: 10.51%) but has beaten the benchmark (7.45%).

Growth of Rs 10,000 vis-a-vis category and benchmark

Annualised performance (%)
The fund’s return profile over 3 and 5 years is impressive.

Yearly performance (%)
The fund has been consistent in its outperformance in recent years.

BASIC FACTS
DATE OF LAUNCH: 29 Sep 2005
CATEGORY Equity
TYPE Multi Cap
AVERAGE AUM Rs 1,333.57 cr
BENCHMARK S&P BSE 500 Index

WHAT IT COSTS
NAVS* GROWTH OPTION Rs 34.69
DIVIDEND OPTION Rs 20.6
MINIMUM INVESTMENT Rs 1,000
MINIMUM SIP AMOUNT Rs 500
EXPENSE RATIO^ (%): 2.69
EXIT LOAD: 1% for redemption within 180 days. 0.5% for redemption between 181 and 365 days

*As on 27 Dec 2016
^As on 30 Sep 2016


FUND MANAGER: R. Srinivasan
TENURE: 4 YEARS AND 11 MONTHS
Education: M.Com and MFM

WHERE DOES THE FUND INVEST?

HOW RISKY IS IT?

All data on this page as on 30 Nov 2016, unless specified. Source: Value Research

SHOULD YOU BUY?
This fund operates as a multi-manager scheme, where a team of in-house analysts contribute to the portfolio construction. Each analyst recommends top picks from sector he covers. Being an analyst-driven fund, it remains sector neutral, and works solely on stock selection. This also takes away any market-cap bias and has contributed to a large-sized portfolio. The premise is to remove individual bias that comes with a single fund manager.

Since its adoption, this strategy has paid off. After a lacklustre performance in its initial years, upto 2011, the fund’s return profile has improved dramatically, while risk has been contained. It is a unique offering, delivering healthy performance but a longer track-record of outperformance would provide more comfort.