Appreciate Your Income with SBI Magnum Balanced Fund

Balanced Funds are hybrid funds that mix stocks and bonds together in order to provide a moderate to high equity and fixed income. Within any fund or portfolio, assets are assigned to either equity stocks or to bonds in fixed income or to cash. Such an arrangement is called as an asset mix and is usually denoted in a set of percentages. SBI Magnum Balanced Fund is an open-ended balanced scheme and was founded by SBI Mutual Fund in October 1995. The fund promises a steady growth to all its investors. The objective of SBI Magnum Balanced Fund is to provide the investors with a long-term capital appreciation by investing in a mix of debt and equity. The scheme allocates the funds in companies having high-growth potential which carries some risk for the investor. The risk factor is balanced through investing the rest of the money in a relatively safe portfolio of debt. The plans available under this scheme are regular and direct that further provide the options for growth and dividend plan. SBI Magnum Balanced Fund NAV as on November 30, 2016, is Rs. 104.23. The value of Assets Under Management (AUM) of SBI Magnum Balanced Fund as on November 30, 2016, is Rs. 7422.06 crores. The SBI Balanced Fund strategy falls under the benchmark CRISIL Balanced Fund – aggressive index w.e.f. June 2016. SBI Magnum Balanced Fund classifies its portfolio in the following sections:

• 37.60% in large-cap
• 29.60% in mid-cap
• 4.75% in small-cap
• 28.05% in cash and other debt assets

The SBI Magnum Balanced Fund scheme have a diversified set of sectors where assets are allocated such as 32.84% in financial services, 15.84% in sovereign, 10.84% in information technology and the remaining is invested in other sectors such as automobiles, energy, consumer goods, industrial manufacturing and pharma. The top-five holdings of equity under the scheme are:

1. HDFC Bank Ltd.
2. Kotak Mahindra Bank Ltd.
3. State Bank of India
4. Infosys Ltd.
5. Sundaram Clayton Ltd.

These funds are meant for investors looking for a combination of safety, income and a fair long-term capital appreciation. Also, investors seeking investments in a mix of debt and equity through stocks from companies that have the potential to grow further in future can invest in SBI Magnum Balanced Fund G. Investors can begin investments in the scheme from a minimum amount of Rs. 5,000. The fund can be exited within twelve months from the date of allotment. SBI Balanced Fund offers 24% and 18.50% returns for investments upto three years and five years. The scheme also offers three types of Systematic Investment Planning:

• Weekly – The investor can invest a minimum amount of Rs. 1,000 for a minimum of six installments.
• Monthly – The investor can start investing from an amount of Rs. 1,000 for minimum six months. They can also invest for one year or more with the monthly amount of Rs. 500.
• Quarterly – The investor can invest quarterly for Rs. 1,500 for minimum one year.

For the quarter ended September 2016, the SBI Balanced Fund is ranked ‘Third’ in the balanced category by CRISIL and remains unchanged from last quarter. The overall track for the strategy signifies an above average performance of the scheme in the category. The fund provides an apt investment opportunity for the investors who strive for profits from the growing equity stocks without completely stepping foot in the equity markets. rnSBI Magnum Balanced Fund is capable of producing profitable returns by securing funds against market unpredictability.