If a fund is not performing in the current market situations, that does not mean it will not perform in future as well. One of the star performers in the mid-2000s, SBI Magnum Global Fund, has delivered superlative returns and is amongst the most popular funds in the industry. However, the fund has underperformed in the past two years, due to many global and economic changes such as the trade war which emerged in the world’s two largest economies, i.e., US and China, increase in the prices of crude oil, and much more. If you had invested in the fund from the past many years, then you may know that the fund has delivered good returns as well in various market conditions. Let’s find out is it still worthy of your investment!
An Overview of SBI Magnum Global Fund (G)
Description
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Details
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Launch Date
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Sept 30, 1994
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Category
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Equity: Thematic-MNC
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NAV (As on Sept 25, 2018)
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Rs 165.215
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AUM (As on Aug 31, 2018)
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Rs 3,718 Cr
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Expense Ratio
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2.39%
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Min. Investment
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Rs 5,000
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Min. SIP Investment
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Rs 500
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Return Since Inception
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14.51%
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An open-ended scheme, SBI Magnum Global Fund predominantly invests in the equity and equity-related securities of the multinational companies. It is also investing a small part of its portfolio in the debt instruments to keep the liquidity in the portfolio and to provide stability to the fund during volatility in the equity market.
Portfolio Allocation of SBI Magnum Global Fund (G)
As per the financial analysts of MySIPonline, the fund has been investing its total corpus in just 38 companies, selecting them on the growth investment philosophy. The fund is selecting the companies whose major shareholding is by the foreign entity, or any Indian company which has 50% turnover from foreign countries, or foreign-listed companies.
As we look at the sector allocation of the fund, it is overweight in healthcare, chemicals, engineering, services, and technology sectors. In all other industries, it underweights the benchmark. This sector allocation shows that SBI Magnum Global Scheme is currently investing significantly in the sensitive sectors and the other half is invested in the defensive sectors, keeping a small amount in the cyclical sectors. All this shows that the fund can earn high in the long-term and elevated risk so that it can deliver good performance in all the market cycles.
The fund majorly invests in the mid-cap stocks, therefore it is a bit more volatile. It has kept approximately 15% in large and small-cap space also. Henceforth, the investors who have an appetite of tolerating moderately high-risk on their principal amount should invest in the fund.
Past Performance Analysis of SBI Magnum Global Fund (G)
Fund/ Benchmark
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Trailing Returns (in %)
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5 Yrs
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7 Yrs
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10 Yrs
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SBI Magnum Global Fund (G)
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21.07
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16.85
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16.48
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NIFTY MNC TRI
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20.04
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18.12
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17.14
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* As on Sept 24, 2018
As per the financial analysts of MySIPonline, if we look at the rolling returns of the fund, it has fallen by 14% in 2011 as against the category’s average of 25%, while in 2013 it lost just 6.4% as against 13.4% by peers. Similarly, in 2016, the fund lost -2% against -2.88% by peers. All these return cycles show that the fund is now capable of managing the losses in the bearish market.
On the contrary, the trailing returns of SBI Magnum Global Fund growth has outperformed the benchmark in the five years but has underperformed in the seven and ten years. These returns depict that SIP is the best way to invest in the fund, and if you want the returns up to 15% from it, you should stay invested for at least 5 years.
So, if an investor is looking for investing the capital through SIP mode in SBI Magnum Global Fund G with a long-term perspective of at least 5 years, they will get the returns up to 19%.
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