Add SBI Magnum Midcap Fund To Your Portfolio For a Better Income

Are you looking for a scheme to add to your portfolio to park the idle money and earn good returns by SBI Mutual Fund? Well, this article provides you the answer in the form of SBI Magnum Midcap Fund which was launched on March 29th, 2005, with an investment objective to help investors earn long-term capital appreciation by investing in diversified equity stocks of mid cap companies. Midcap companies are the 101 to 250 companies in terms of full market capitalization. It follows the bottom-up approach to select the stocks and choose companies across sectors and adopts a mixture of growth and value style of investing.

Who Is Managing SBI Magnum Midcap Fund Growth?

This fund is managed by Ms. Sohini Andani since July 2010. She joined SBIFM as Research Head in the year 2007 and eventually became portfolio manager in the year 2010. She is a Bachelor of Commerce from the Mumbai University and a Chartered Accountant. She has over 23 years of experience and is managing other schemes by SBI Mutual Fund as well apart from this scheme such as SBI Bluechip Fund and SBI Banking & Financial Services Fund. She was working with ING Investment Management before joining SBIFM.

Who Should Invest in This Scheme?

• Investors who are willing to add a scheme to their portfolio that can help in earning long-term capital appreciation may invest in this scheme by SBI Mutual Fund.
• The principal amount invested in it is under moderately high risk which means that only those investors should invest who can handle such risk.
• Investors who are keen on investing in diversified equity of midcap companies may invest in it.

Important Points About SBI Magnum Midcap Fund

SBI Magnum Midcap Fund NAV as on July 20th, 2018 was Rs. 71.1595. The minimum investment amount with which an investor may start investing in this scheme in Lump Sum is Rs. 5000 and the additional minimum investment amount for existing investors is Rs. 1000. If an investor redeems within 365 days from the date of allotment, he becomes liable to pay 1% as exit load. After completion of one year, this amount too is nullified. It is an open-ended scheme which means that an investor is free to buy or sell the units directly to the fund house.

Assets Allocation

The assets under management as June 30th, 2018 was Rs. 3521 crores out of which investment in equity was 97.33%. This equity allocation is further divided into large-cap, mid-cap, and small-cap with the assets allocated in them 5.39%, 76.88%, and 17.72%, respectively. The top ten companies in which it has invested in majorly are Cholamandalam Invest. & Fin., PNB Housing Finance, Godrej Properties, The Ramco Cements, Sheela Foam, Dixon Technologies, Voltas, Carborundum Universal, Torrent Pharmaceuticals, and M&M Financial Services with the percentage of assets allocated in them being 5.72, 4.75, 4.28, 4.05, 3.77, 3.74, 3.71, 3.64, 3.49, and 3.46, respectively as on June 30th, 2018.

SBI Magnum Midcap Fund’s Performance and Risk Involved

As on July 20th, 2018, the trailing returns provided by this scheme for one year were -8.34%, three years was 4.64%, and five years was 23.04% which show that though it provided negative returns but with time it gradually provided better returns and the best five year returns. Its standard deviation was 15.72%, the Sharpe Ratio was 0.09%, beta was 0.87%, and Alpha was -6.81% as on June 30th, 2018. These risk measures have been calculated on the basis of last three years’ calendar month returns.

You may invest in SBI Magnum Midcap Fund online as well as through offline mode. In case you have any confusion about whether this scheme is in sync with the requirement of your portfolio or not, consult a financial advisor.

In this article, you will get to read about SBI Magnum Midcap Fund.