Constantly look for mutual funds to start your investment? This fund can be a suitable option with a solid performance over the last five years. It is an open-ended growth scheme that aggressively manages significant equity stock investments and expands the entire market capitalization spectrum.
- Investment Objective – Provides an open-ended scheme by investing in a diversified portfolio of equity securities, providing opportunities for investors to provide long-term capital growth.
- Ideal for – Investors who have a risk appetite and want to get a positive return on their investment.
Features of SBI Magnum Multicap Fund Scheme:
- Benchmark Index- S&P BSE 500 Index
- Investment Options- Growth and Dividend
- Minimum Investment- Rs.1,000
- Entry Load- Not Applicable
- Exit Load- 1% entry load on exiting the scheme within 12 months from unit allotment date. No entry load for exiting a scheme after one year
- Riskometer- Moderately High
- Fund Manager- Mr Anup Upadhyay
One such option is the SBI Magnum MultiCap Fund Direct Plan Growth, which not only captures the growth of large-cap stocks but also keeps a proper balance between valuations of large and medium-sized companies. As per the results, the fund has been one of the consistent performers in the multi-cap segment till the end of 2017 and has achieved top quartile rank four times since 2011.
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Unbiased rolling returns: SBI Magnum Multicap Fund Scheme
Under the efficient management of Mr Anoop Upadhyay, the fund picks stocks that have indicated growth in earnings over at least three years. The fund has tried to avoid short-term strategic calls, and, as a result, over the past five years, Time has provided good rolling returns. Rolling funds are considered to be the most reliable performance indicators in the mutual fund space, providing an annual overview of daily / weekly / monthly measured returns. The rolling returns of the SBI Magnum multi-cap fund indicate that the fund has beaten its benchmark (S&P BSE 500) for more than five consecutive years in a 3-year rolling era.
Volatility Measures – Up and Down Market Capture Ratio
Upside and downside market capture ratios are useful analytical tools to consider fund success as market conditions rise and fall. The inverse market capture ratio has been more than 100 per cent in the last 3 and 5 years, suggesting that the fund was able to generate higher returns than its benchmark when the market was growing. Similarly, when the market fell during 2015–16, the downside market capture ratio was less than 100 per cent, suggesting that the fund had some risk protection.
- 13.61% return in three years, upmarket capture ratios is 103.00%, down-market capture ratio is 76.00%, Capture ratio is 1.36%.
- 21.49% return in five years, upmarket capture ratios are 109.00%, down-market capture ratio is 80.00%, Capture ratio is 1.37%.
Note: The fund has a high capture ratio from the medium-risk multi-cap category, which ensures significant risk-adjusted returns. The fund seeks both profitability and growth by balancing its portfolio between large and midcap stocks.