Magnum Equity Fund

 

A pure diversified equity scheme, Magnum Equity has generated reasonable, but not astounding returns, over a long period of time. Existing investors can continue to hold their investment. New investors looking to diversify MF portfolios can also consider the scheme.

 

Magnum Equity has been re-positioned from being a predominantly large cap scheme to a pure large cap one. Its investment universe is thus restricted to top 100 companies by market capitalisation. While the fund appears similar to any other diverisified equity scheme in the market, there is one factor that distinguishes it from others. This scheme has a strategy to have at least 50% of the portfolio follow the benchmark strictly, like an index fund.The fund manager's instincts for stock selection are thus reserved for the balance 50% of the portfolio, albeit with restrictions on sectoral exposures. This strategy somewhat limits the scheme's risk with that of the benchmark, but also restricts its ability to outperform its peers that are better diversified. Those seeking conservative to moderate returns without undue risk can consider this scheme as an investment option.

 

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