Skip to main content

SBI Magnum Sector Umbrella – Emerging Businesses Fund

Buy Gold Mutual Funds

Invest Mutual Funds Online

Download Mutual Fund Application Forms

Launched in October 2004, SBI Magnum Sector Umbrella – Emerging Businesses Fund has been ranked CRISIL Fund Rank 1 (in the top 10 percentile of its peer group) in the CRISIL Mutual Fund Rankings over the past three quarters in the small and mid-cap equity funds category. Further, the fund has been in the top 30 percentile (CRISIL Fund Rank 1 or CRISIL Fund Rank 2 cluster) over the past seven quarters. Thus the fund has been a consistent performer in this category.

The investment objective of the fund, managed by Rama Iyer Srinivasan, is to participate in the growth potential presented by various companies that are considered emergent and have export orientation/outsourcing opportunities or are globally competitive. The fund may also evaluate emerging businesses with growth potential and a domestic focus.

The fund has maintained a growth-oriented investment style, with the portfolio tilted towards small- and mid-cap stocks comprising 81 per cent of its equity portfolio in the past three months. A higher exposure to small- and midcap stocks helps in generating superior returns while increasing volatility and liquidity risk for the fund. The 19 per cent investment in large-cap stocks lends some extent of diversification to the portfolio in terms of capitalisation.

The fund has outperformed its benchmark (BSE 500), CNX Midcap Index and the category average across one, two, three, five and seven years. The higher returns of 10.29 per cent (CAGR) over a seven-year period are in line with investment horizon for this asset class which rewards investors who hold funds for longer time frames. Over the past year, the fund has delivered a positive return of 8.9 per cent vis-à-vis negative 14.66 per cent, 16.01 per cent and 7.03 per cent of the benchmark, CNX Midcap Index and category average, respectively. The fund's superior riskadjusted performance is evident from its Sharpe ratio of 0.15, in the past year, compared to negative 1.01 for the category.

An investment of ~1,000 in the fund since its inception would have grown to ~4,365 as on June 5, 2012, yielding a CAGR of 21.23 per cent. A similar investment in the benchmark and category would have grown to ~2,634 and ~3,438, respectively – a CAGR of 13.49 per cent and 17.51 per cent, respectively.

An SIP analysis also reveals the fund has substantially outperformed the benchmark over the five and seven-year periods analysed.

Portfolio analysis The fund has dynamically managed its equity exposure depending on the market conditions. During the past year when the markets were volatile, the fund reduced its equity exposure to an average 88 per cent from an average 93 per cent maintained a year ago. A similar strategy was followed by the fund during the economic turmoil in 2008 where it reduced its equity exposure to an average 90 per cent in the December 2008April 2009 period.

The fund is holding a relatively concentrated portfolio as compared to the category, both at the sector and stock level. The top five stock holdings of the fund formed 34 per cent of its portfolio against 24 per cent for the category, whereas the top five sector holdings constituted 57 per cent vis-à-vis 52 per cent for the category over the past year. At the stock level, the fund has held an average 29 stocks in its portfolio, as against 49 for the category over the past three years.

In terms of sectors, the fund's higher exposure to consumer non-durables and lower exposure to oil and gas (0.13 per cent versus 4.79 per cent for benchmark) have helped the fund generate superior returns over the past year compared to the benchmark. The fund has added software and power while exited fertilisers over the past five months. The fund has not maintained any exposure towards the construction sector over the past year. It has gradually reduced its exposure towards construction from an average 17.5 per cent between January 2008 and March 2009.

Key stock selections, such as Page Industries, Hawkins Cookers, Gillette India and Agro Tech Foods have helped the fund generate higher returns than the category average in the past two years.

--------------------------------------------

Invest Mutual Funds Online

Transact Mutual Fund Online

Download Mutual Fund Application Forms from all AMCs

Download Mutual Fund Application Forms

Best Performing Mutual Funds

    1. Largecap Funds        Invest Online
      1. DSP BlackRock Top 100 Fund
      2. ICICI Prudential Focused Blue Chip Fund
      3. Birla Sun Life Front Line Equity Fund
    2. Large and Midcap Funds     Invest Online
      1. ICICI Prudential Dynamic Plan
      2. HDFC Top 200 Fund
      3. UTI Dividend Yield Fund
    1. Mid and SmallCap Funds    Invest Online
      1. Reliance Equity Opportunities Fund
      2. DSP BlackRock Small & Midcap Fund
      3. Sundaram Select Midcap
      4. IDFC Premier Equity Fund
    1. Small and MicroCap Funds             Invest Online
      1. DSP BlackRock MicroCap Fund
    1. Sector Funds              Invest Online
      1. Reliance Banking Fund
      2. Reliance Banking Fund
    1. Gold Mutual Funds             Invest Online
      1. Relaince Gold Savings Fund
      2. ICICI Prudential Regular Gold Savings Fund
      3. HDFC Gold Fund

 

Popular posts from this blog

LIC's JEEVAN SHIKHAR

  LIC's Jeevan Shikhar is a participating, non-linked, saving cum protection single premium plan wherein the risk cover is ten times of Tabular Single Premium. The proposer will have an option to choose the Maturity Sum Assured. The premium payable shall depend on the chosen amount of Maturity Sum Assured and age at entry of the life assured. This plan also takes care of liquidity need through its loan facility. The plan will be open for sale for a maximum period of 120 days from the date of launch. 1.   BENEFITS   : a) Death Benefit: On death during first five policy years: Before the date of commencement of risk   :   Refund of Single Premium without interest. Single Premium mentioned above shall not include any extra amount if charged under the policy due to underwriting decision and taxes. After the date of commencement of risk   : "Sum Assured on Death" equal to 10 times the tabular single premium shall be payable. On death after completion of five policy years but b...
Read more

CNX Midcap vs BNP Paribas Midcap Fund

BNP Paribas Midcap Fund - Invest Online   Te  performance of BNP Paribas Midcap Fund  – which has across the last 3 years generated superior returns over the benchmark – especially when the markets have gone down the fund has handsomely outperformed the benchmark preserving the capital of the investors. The fund has been able to do this only due to the superior stock selection process ( BMV approach) that is diligently followed at BNPP.   Highlights of BNP Paribas Mid Cap Fund:   Investment Objective : BNP Paribas Mid Cap Fund gives an investor exposure to invest in the various quality midcap stocks. The fund also has some exposure to large as well as small cap stocks.   Investment Approach : BMV ( Quality and scalability of Business →Good Management → Reasonable Valuation ) with Bottom-up stock picking.   Most of the investors are way happier if the fund that they have invested in is a significant Outperformer in tough times than in Good ti...
Read more

Investment Strategy - What is Sector Rotation Theory?

Buy Gold Mutual Funds Invest Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Call 0 94 8300 8300 (India)   The economy goes through cycles : it expands for a few years and then contracts. Study of historical data suggests that different sectors tend to perform well on the stock markets during different stages of the economic cycle. While history never repeats itself exactly, some broad patterns tend to recur. Investors can take advantage of the sector rotation theory to move their money from those sectors that have seen their best times to those that are likely to do well in future.   The person who developed the sector rotation theory is Sam Stovall, chief investment strategist at Standard & Poor's. He developed this theory by studying data on economic cycles going as far back as 1854 provided by the National Bureau of Economic Research ( NBER ) of the US.   When trying to correlate stock-market perfor...
Read more

Get your PAN (Permanent Account Number)

Invest In Tax Saving Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Buy Gold Mutual Funds Call 0 94 8300 8300 (India) O f late PAN (Permanent Account Number) has gained a lot of significance not only as proof of identification for various purposes but also for keeping a track of financial records including tax liabilities.   Some persons are under the impression that the person whose income is taxable only needs to have a PAN. This is not true. Even if your income is not taxable and so not required to file your income tax return still it is in your interest to have a PAN number to save on the taxes, which are deducted at source as TDS.   So let us discuss how important is the Permanent Account Number for the rate at which TDS will be deducted before any income is credited or paid to you?   The income tax laws requires a payer to deduct Income Tax popularly known as TDS before the vari...
Read more

Rajiv Gandhi Equity Savings Scheme (RGESS) set for launch this week

The finance ministry is set to notify the Rajiv Gandhi Equity Savings Scheme ( RGESS ) this week.   Though Finance Minister PChidambaram had approved on September 21, the scheme announced in this year's Budget, and had said that the revenue department will notify the scheme and the Securities and Exchange Board of India ( Sebi ) would issue relevant circulars within two weeks, it is yet to become operational.   A senior finance ministry official said the revenue department was expected to notify the scheme any day now to attract retail investors to the equity segment.   He added that Sebi was not required to issue any circular for the operationalisation of the scheme and that after the issuance of the revenue department's notification, investors would be able to avail of the benefits of the scheme.   The official accepted that implementation of the scheme had been delayed due to the deliberations on inclusion of mutual funds ( MF ) in it.   ...
Read more
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now