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

ULIP Review: ProGrowth Super II

  If you are interested in a death cover that's just big enough, HDFC SL ProGrowth Super II is something worth a try. The beauty is it has something for everybody — you name the risk profile, the category is right up there. But do a SWOT analysis of the basket, and the gloss fades     HDFC SL ProGrowth Super II is a type-II unit-linked insurance plan ( ULIP ). Launched in September 2010, this is a small ticket-size scheme with multiple rider options and adequate death cover. It offers five investment options (funds) — one in each category of large-cap equity, mid-cap equity, balanced, debt and money market fund. COST STRUCTURE: ProGrowth Super II is reasonably priced, with the premium allocation charge lower than most others in the category. However, the scheme's mortality charge is almost 60% that of LIC mortality table for those investing early in life. This charge reduces with age. BENEFITS: Investors can choose a sum assured between 10-40 times the annualised premium...

Am you Required to E-file Tax Return?

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   Am I Required to 'E-file' My Return? Yes, under the law you are required to e-file your return if your income for the year is Rs. 500,000 or more. Even if you are not required to e-file your return, it is advisable to do so for the following benefits: i) E-filing is environment friendly. ii) E-filing ensures certain validations before the return is filed. Therefore, e-returns are more accurate than the paper returns. iii) E-returns are processed faster than the paper returns. iv) E-filing can be done from the comfort of home/office and you do not have to stand in queue to e-file. v) E-returns can be accessed anytime from the tax department's e-filing portal. For further information contact Prajna Capit...

IDFC - Long term infrastructure bonds - Tranche 2

IDFC - Long term infrastructure bonds What are infrastructure bonds? In 2010, the government introduced a new section 80CCF under the Income Tax Act, 1961 (" Income Tax Act ") to provide for income tax deductions for subscription to long-term infrastructure bonds and pursuant to that the Central Board of Direct Taxes passed Notification No. 48/2010/F.No.149/84/2010-SO(TPL) dated July 9, 2010. These long term infrastructure bonds offer an additional window of tax deduction of investments up to Rs. 20,000 for the financial year 2010-11. This deduction is over and above the Rs 1 lakh deduction available under sections 80C, 80CCC and 80CCD read with section 80CCE of the Income Tax Act. Infrastructure bonds help in intermediating the retail investor's savings into infrastructure sector directly. Long term infrastructure Bonds by IDFC IDFC issued an earlier tranche of these long term infrastructure bonds on November 12, 2010. This is the second public issue of long-te...

Section 80CCD

Top SIP Funds Online   Income tax deduction under section 80CCD Under Income Tax, TaxPayers have the benefit of claiming several deductions. Out of the deduction avenues, Section 80CCD provides t axpayer deductions against investments made in specific sector s. Under Section 80CCD, an assessee is eligible to claim deductions against the contributions made to the National Pension Scheme or Atal Pension Yojana. Contributions made by an employer to National Pension Scheme are also eligible for deductions under the provisions of Section 80 CCD. In this article, we will take a look at the primary features of this section, the terms and conditions for claiming deductions, the eligibility to claim such deductions, and some of the commonly asked questions in this regard. There are two parts of Section 80CCD. Subsection 1 of this section refers to tax deductions for all assesses who are central government or state government employees, or self-employed or employed by any other employers. In...

Merger of Tata Indo-Global Infrastructure Fund with Tata Equity Opportunities Fund

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 Merger of Tata Indo-Global Infrastructure Fund with Tata Equity Opportunities Fund Tata Mutual Fund has decided to merge Tata Indo-Global Infrastructure Fund with Tata Equity Opportunities Fund, with effect from January 16, 2015.   Investors of Tata Indo-Global Infrastructure Fund can redeem/ switch out units from December 13, 2014 to January 12, 2015 without paying any exit load. 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 answer them OR You can write back to us at PrajnaCapital [at] Gmail [dot] Com --------------------------------------------- Invest Mutual Funds Online Invest Any Mutual Fund Online Download Mutual Fund Application Forms from all AMCs Download Mutual Any Fund A...
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