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

Mutual Fund Exit Load Changes

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300 Mutual Fund Exit Load Changes AMCs don't communicate about any change in exit load directly with investors, but do update on their website   The exit load applicable to your investments is the load which existed at the time when you invested in the particular fund. Any subsequent changes in the exit load will not be applicable to your investments.   However, Asset Management Companies ( AMCs ) periodically publish addendums in the newspapers, which state any change in exit loads of specific schemes managed by them. Such changes are also posted on their websites. However, a direct communication to an investor is not made, considering the costs involved in doing so. In their own interests, investors should not only track the performance of the funds they i...
Read more

Birla Sun Life Mutual Fund Launches Birla Sun Life NIFTY ETF

Birla Sun Life has launched a new fund namely, Birla Sun Life Nifty ETF, an open ended exchange traded fund. The new fund will be open for subscription from 4th July to 18th July 2011, at an offer price of Rs 10 per unit. The investment objective of the scheme is to generate returns that closely correspond to the total returns of securities as represented by S&P CNX Nifty, subject to tracking errors. No exit load will be charged under the scheme. The performance of the scheme will be benchmarked against S&P CNX Nifty and will be managed by Satyabrata Mohanty.   -----------------------------------------------------------------   Also, know how to buy mutual funds online:   1) DSP BlackRock Mutual Funds: http://prajnacapital.blogspot.com/2011/05/buying-dsp-blackrock-mutual-funds.html   2) Reliance Mutual Funds: http://prajnacapital.blogspot.com/2011/06/buying-reliance-mutual-funds-online.html   3) Birla Sunlife Mutual Funds: http://prajnacapital.blogspot.com/2011/...
Read more

Atal Pension Yojana contribution Tax Benefit for spouse

Contributions to Atal Pension Yojana (APY) are eligible for the same tax benefits as the NPS. This means that the contributions can be claimed under Section 80CCD (1B). The current limit for Section 80CCD (1B) is   Rs   50,000, over and above the   Rs   1.5 lakh limit under Section 80C. Section 80 CCD (1) is a different one, meant to cover employers' contribution towards NPS . You cannot get tax benefit by investing in the name of your spouse under Section 80 CCD . ------------------------------ ----------------- Invest Rs 1,50,000 and Save Tax under Section 80C. Get Great Returns by Investing in Best Performing ELSS Mutual Funds Top 10 Tax Saver Mutual Funds to invest in India for 2016 Best 10 ELSS Mutual Funds in India for 2016 1. BNP Paribas Long Term Equity Fund 2. Axis Tax Saver Fund 3. Religare Tax Plan 4. DSP BlackRock Tax Saver Fund 5. Franklin India TaxShield 6. ICICI Prudential Long Term Equity Fund 7. IDFC Tax Advantage (ELSS) Fund 8. Birla Sun Life Tax Relief 96 9. ...
Read more

Mutual Fund Reivew: Birla Sun Life Asset Allocation Conservative

Birla Sun Life Asset Allocation Conservative has numbers on its side to prove its credibility… Don't be surprised to find this Fund of Funds ( FoF ) in our recommendations. It has earned its place. And despite the difference in the structure of the product, there is no arguing with the numbers.   Of the total 6 years of its existence, the fund has been among the top 10 funds in its category in four of them. Last year it put up an average show and the only year it underperformed its peers was in 2008.   One aspect to look at when investing in an FoF is the expense ratio. The expense ratio of an FoF is capped at a lower limit of 0.75 per cent (2.50% for an actively managed fund). However, the FoF not only has its own expense (though lower) but even the expense ratio of the fund it is investing into. Fortunately, the fund manager takes that into account. "Expense is one of the important criteria used for fund selection and is the main reason for our investment in BSL Ind...
Read more

Short-Term Investment Options in Mutual Funds

Mutual funds offer liquid funds and ultra short term funds in the debt category, which are suitable for short investment periods. Ultra short-term funds were earlier known as liquid plus funds. Liquid funds invest in money market instruments with a maturity of 91 days or less. However, there are no such restrictions for ultra short-term funds. Who should invest in these? These are open-ended schemes. Investors with a short investment horizon or with surplus cash and low risk appetite should look at these. These could include corporate as well as retail investors. Those interested in staying invested for less than 15 days can opt for liquid funds. Retail investors who want to remain invested for two-four months, can look at ultra short-term funds. The short duration for both liquid and ultra short-term funds shields them from any interest rate volatility.   What kind of returns do they offer? In terms of an investment period less than 15 days, these funds are comparable to a ba...
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