Skip to main content

SBI Magnum Global Fund

Invest In Tax Saving Mutual Funds Online

Call 0 94 8300 8300 (India)

 

If you have been associated with the world of mutual funds for more than a decade, chances are that you would have had some tryst with SBI Magnum Global, the star performer of the early and mid 2000s. Like quite a few other funds launched in the 1990s, this fund too had its hey days, under the tutelage of then ace fund manager Sandip Sabharwal, but fell by the wayside in its success journey.

But the fund is now on a redeeming act, after R Srinivasan, the fund manager of the now popular Magnum Emerging Businesses fund, took over the helm in 2009. While its return of 6.3% annually in the last 3 years may not per se look good, that's comfortably higher than category average return of just 0.6% a year. It is also far superior to the -4.2 per cent return annually of its benchmark CNX Midcap.

SBI Magnum Global holds a portfolio of domestic stocks with a predominantly mid-cap bias. It cannot strictly be said that the fund has a mandate of investing in mid-cap stocks; as even up to 2003, the fund had a good dose of large caps. But since then, its consistently high exposure to the mid-cap market segment has led to the scheme being stamped as a mid-cap fund.

Suitability


If you are holding SBI Magnum Global, you can stay with it if you have reasonable risk appetite. If you wish to hold mid-cap funds in your core portfolio, then the likes of IDFC Premier Equity or HDFC Mid-Cap Opportunities should be your first choice, given their superior risk-adjusted returns. Funds such as Magnum Global can at best be good diversifiers.

You may also wonder how this fund is different from its sister from the same stable, SBI Emerging Businesses. The latter is a more aggressive mid and small-cap fund with more concentrated bets on stocks. That means it sports a higher risk-return profile when compared with Magnum Global.

Performance


SBI Magnum Global may not have delivered superior returns when paired with the likes of IDFC Premier Equity or HDFC Mid-Cap Opportunities on a point-to-point basis in the last 5 years. But its SIP returns outdo these funds marginally.

Over a 5-year SIP period, the fund delivered 8.6% annually, compared with 8% for HDFC Mid-Cap Opportunities and 8.4% for IDFC Premier Equity. This, of course, suggests that the fund's NAV provides enough opportunities to averages costs quite well. That happens only when its NAV is much more volatile than the peers. So Magnum Global can be good candidate for investing through SIP.

On a rolling one-year return basis between 2010 and 2013, the fund beat its benchmark 88% of the times, suggesting reasonable consistency.

More recently, in 2011 as well as on a year-to-date basis, the fund has stayed remarkably stable amidst heavy volatility in the mid-cap space. It fell 14% in 2011 as against category average of 25%. In 2013, thus far, it lost just 6.4% as against 13.4% by peers. Magnum Emerging Businesses lost 15% over the same period. Clearly, the latter is the more aggressive one, going by portfolio and performance.

Portfolio


SBI Magnum Global and SBI Emerging Businesses sport quite a few stocks in common; being managed by the same fund manager. Page Industries, Divi's Laboratories, Shriram City Union Finance and Redington India, to name a few, are some of the common stocks in their kitty.


But the concentrated holding in SBI Emerging Businesses Fund is the key differentiator. For example, Page Industries, which is the top fund held by SBI Magnum Global accounted for just 3.8% of its portfolio as of May 2013. But the same stock, which was the third top stock in the portfolio of SBI Emerging Businesses, was held to the tune of 5.9% of the assets.

It is because of its more diversified and less concentrated approach, that SBI Magnum Global may fall less in downturns compared with its sister fund. That said, this can also cap the kind of gains that the sister fund may enjoy.

The sector choices between the 2 funds are also vastly different. Sectors such as industrial manufacturing are hardly present in SBI Emerging Businesses while it was among the top 3 sectors held by SBI Magnum Global as of May. Right now, Magnum Global holds a good number of 'growth stocks' but some of which look like 'value' in a down market.

Happy Investing!!

We can help. Call 0 94 8300 8300 (India)

Leave your comment with mail ID and we will answer them

OR

You can write back to us at PrajnaCapital [at] Gmail [dot] Com

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

Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.

Invest Tax Saving Mutual Funds Online

Tax Saving Mutual Funds Online

These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)

Download Tax Saving Mutual Fund Application Forms from all AMCs

Download Tax Saving Mutual Fund Applications

These Application Forms can be used for buying regular mutual funds also

Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )

  1. ICICI Prudential Tax Plan Invest Online
  2. HDFC TaxSaver Invest Online
  3. DSP BlackRock Tax Saver Fund Invest Online
  4. Reliance Tax Saver (ELSS) Fund Invest Online
  5. Birla Sun Life Tax Relief '96 Invest Online
  6. IDFC Tax Advantage (ELSS) Fund Invest Online
  7. SBI Magnum Tax Gain Scheme 1993 Invest Online
  8. Sundaram Tax Saver Invest Online
  9. Edelweiss ELSS Invest Online

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

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. Tax Saver MutualFunds Invest Online
      1. ICICI Prudential Tax Plan
      2. HDFC Taxsaver
      3. DSP BlackRock Tax Saver Fund
      4. Reliance Tax Saver (ELSS) Fund
    2. 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

Group Health Insurance

Buy Group Health Insurance Online   For Human Resources, the biggest challenge today is to decide whether medical benefits should be offered to employees or not, what type of plans should be offered, what will be the cost and how will the cost be split between employees and employer. Well, most of these are subjective and would depend on a lot of factors including company size, average employee salary, etc. However, this article will give you a fair idea on how you should go about deciding these factors: 1. Why offer group health insurance benefit to employees : Studies have proved that retention rates among employers offering GHI are much higher than the ones who are not offering. Moreover, the cost of providing this benefit as a percentage of salary is very low as compared to the perceived value. As an example, say if average salary of an employee in your organization is 4 LPA. If you decide to offer a health insurance benefit to him for a Sum insured of ...
Read more

ICICI Prudential Dynamic Plan Invest Online

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   ICICI Prudential Dynamic Plan             Invest Online This fund does remarkably well during falling markets, but fails to show the same prowess during a rising market. The fund sticks to its mandate to adapt to the dynamic nature of the market by shuttling between debt and equity. It takes aggressive asset calls in equity when the market surges by investing in quality mid-cap stocks. At the same time, it adopts a defensive strategy by investing in debt and cash when markets get overvalued, making it a good long-term choice.     For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call     Leave a missed Call on 94 8300 8300   Leave your comment with mail ID and we will ...
Read more

Commercial Paper (CP)

Invest Mutual Funds Online Download Mutual Fund Application Forms Commercial Paper (CP): These are issued by corporate entities in denominations of Rs.2.5mn and usually have a maturity of 90 days. CPs can also be issued for maturity periods of 180 and one year but the most active market is for 90 day CPs.   Two key regulations govern the issuance of CPs-firstly, CPs have to be compulsorily rated by a recognized credit rating agency and only those companies can issue CPs which have a short term rating of at least P1. Secondly, funds raised through CPs do not represent fresh borrowings for the corporate issuer but merely substitute a part of the banking limits available to it. Hence, a company issues CPs almost always to save on interest costs ie it will issue CPs only when the environment is such that CP issuance will be at rates lower than the rate at which it borrows money from its banking consortium. ----------------------...
Read more

Lump Sum or SIP?

Invest Mutual Fund Online     You have a lump sum in hand and you wish to invest in equity funds. However, you have heard a lot of talk about investing in equity funds through Systematic Investment Plans (SIPs) because they help average costs, ensure you do not ill-time the market, and help you invest in small sums, besides giving you many other advantages. So, should you invest the money you have in hand in one go, or let it remain in your bank account and then do an SIP? There is no harm in investing a lump sum amount. For all you know, compounding, over the long term, could work better with lump sum. However, make sure you fulfill all of these three criteria if you want to invest in one go. Else, SIP is the way to go. #1: You invest for the long term According to past data, ideally, if you have a time frame of 12 years or more, you can consider lump sum investing (provided you satisfy the other two conditions that follow). So, what is the sanctity behind 12 years? Is it because only...
Read more

Why credit history is critical?

Will you need a loan to buy a car or a house? Do you know why some people get their loans sanctioned quickly without any hassle, whereas others find that their approval is delayed or their application is rejected? If you want a loan, you will need to work to build a solid credit history because this can have a bearing on the ease with which you get loans. Read on to learn more about what is a credit history and how to build a good credit score. What is a credit history? Your credit history is a way of tracking your credit behaviour and habits — basically it shows how disciplined and regular you are when it comes to repaying your dues on loans that you have taken. It will show a complete record of your past borrowing and repayment record including details about any late payments or if you have defaulted on a loan. This track record is readily accessible to lenders and is used by them to when reviewing your loan application. Borrowers who have historically had a bad record of managing...
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