SBI Magnum Equity Fund is an open-ended equity scheme which started on January 01, 1991. It is positioned as a large-cap fund and tends to generate stability in the investor’s portfolio. Historically, large caps usually outperform or recover faster than small and mid cap stocks and are, therefore, considered relatively more stable. The fund has a moderately high-risk profile and follows a top-down approach while doing the stock selection. It starts with analyzing broader economic outlook and then identifies the sector which eventually narrows down to stocks. Investors seeking capital appreciation in the long term with relatively low risk may find this MF scheme suitable.
*Note- SBI One India Fund was merged with SBI Magnum Equity Fund on August 08, 2012.
About Equity Funds
Equity fund is a type of mutual fund which purchases ownership of businesses usually by buying publicly traded common stocks. There are times when investments are made in privately held companies, the ones that aren’t traded on the stock market. Unlike bond funds and fixed income funds that collect interest income by offering loans to companies and governments, equity funds seek to find investment opportunities in businesses that will grow. Equity funds can be categorized into various types according to their focus on market capitalization, such as small cap funds, mid-cap funds, and large cap funds. SBI Magnum Equity Fund belongs to the large cap category.
About Large Cap Funds
These are funds that invest a major portion of their corpus into companies having large capitalization. These funds are known for offering stable and sustainable returns over a long period of time. SBI Magnum Equity Fund belongs to this category of funds and is therefore known for offering stable and sustainable returns.
Name of AMC: SBI Funds Management Pvt. Ltd. It is a joint venture between SBI and Amundi.
The scheme seeks to primarily invest in equities or high-growth companies to serve as a suitable investment option for people seeking long-term capital appreciation. The scheme also seeks to invest in debt and money market instruments to maintain the liquidity of an open-ended scheme.
Name of Trustee Company: SBI Mutual Fund Trustee Company Pvt. Ltd.
Ranking: It has been ranked third in the large cap category for the quarter that ended in December 2016, and has remained unchanged since then.
Asset Size: Rs. 1341.16 crores as on 31st March 2017
Fund Manager: R. Srinivasan
Mr. R Srinivasan has been managing the fund for the past seven years, starting from May 2009. He has an experience of over 22 years in equities and before joining SBI he was with Future Capital Holdings, one of the recognized asset management and financial services entity. At SBI Funds Management Private Limited, he is also the head of equities and senior fund manager of equity. He is a post graduate in commerce with an MFM from the University of Mumbai. He was ranked as one of the top 10 fund managers for the year 2015 by Economic Times.
Apart from SBI Magnum Equity Fund, he also manages SBI Magnum Balanced Fund, SBI Magnum Global Fund, SBI Emerging Businesses Fund, SBI Small & Midcap Fund, and SBI Contra Fund. SBI Magnum Balanced Fund is jointly managed by Dinesh Ahuja.
Benchmark: Nifty 50 Index
Managed and owned by India Index Services and Products Ltd., Nifty 50 is a diversified stock index which accounts for 13 sectors of the economy and is used for benchmarking fund portfolios. As of March 31, 2016, for the stocks listed on NSE represents close to 65% of the free float market capitalization of the stocks.
Load can be defined as an amount that needs to be paid by the investor to either subscribe to the units or to redeem the units under the scheme.
The asset management company (AMC) has the liberty to change or modify the load structure on a prospective basis.
Entry Load: According to a circular issued by SEBI in 2009, no entry load is applicable.
Exit Load: Exit load at the rate of 1% is charged if the units purchased or switched in from another scheme are redeemed or switched out within 1 year of allotment. No exit load can be charged on redemption or switch out of units if done after 1 year of allotment of units.`
Minimum Application Amount
The minimum amount to start an investment in SBI Magnum Equity Fund is Rs. 5,000 and in multiples of Re. 1 thereafter. For any additional investment, a minimum of Rs.1, 000 is required.
Fund Philosophy: SBI Magnum Equity Fund is a focused large-cap fund, which currently invests in 25 to 40 stocks while ensuring that the investments offer adequate diversification benefit.
Going by the past records, the fund has shown absolute returns in the last few years. However, this performance may or may not sustain in future depending upon market conditions and investment choices.
Advantages of Investing in SBI Mutual Funds
- The SBI Mutual Funds team has expertise in this sphere, thanks to its highly experienced team and complete in-house research that it carries.
- The processes followed by investments are highly structured and disciplined which offers agility along with flexibility.
- SBI Mutual Funds has a specialized and efficient team that constantly monitors risk management and risk mitigation.
- SBI’s association carries with it 25 years of experience and strong domestic and international strengths.
- The brand name also ensures strong industry relations and is therefore trusted by investors.