Can SBI Magnum Global Fund Offer Returns of 18% in Five Years?

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	Details
Launch Date	Sept 30, 1994
Category	Equity: Thematic-MNC
NAV (As on Sept 25, 2018)	Rs 165.215
AUM (As on Aug 31, 2018)	Rs 3,718 Cr
Expense Ratio	2.39%
Min. Investment	Rs 5,000
Min. SIP Investment	Rs 500
Return Since Inception	14.51%

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	Trailing Returns (in %)
	5 Yrs	7 Yrs	10 Yrs
SBI Magnum Global Fund (G)	21.07	16.85	16.48
NIFTY MNC TRI	20.04	18.12	17.14

* 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%.  

SBI Magnum Multicap Fund - One of the Best Places to Park Your Money

The 21st century is often looked upon as the most important chapter of mankind’s evolution, precisely due to the technological reforms that have happened and will happen during its time lapse. Right from cloning cells to producing clear energy, we have brought a lot of things on our plate to boast about. And reforming the ways to earn more money is just an ounce of reflection of our ability to change the world.

SBI Magnum Multicap Fund is one example out of the most magnificent reforms brought to the economic world. Thanks to its sponsors that they brought a power-pack plan for the investors and introduced them to the world of enormous wealth building. Now, with the help of the technologically advanced, highly informative portal MySIPonline, anybody can conquer his wishes by investing in the most decorated funds of all time, including SBI Multicap Fund.

Right from a brief history of this fund to its latest conquests, this article contains all. So, sit tight, and get geared for some of the most enlightening information coming your way!

The History
SBI Magnum Multicap Fund (G), as evident from its title, is an equity-oriented mutual fund belonging to the multicap category. It has allotted 94.61% of its assets towards Equity and related instruments, and the rest have been parked in Debt. It was launched way back in September, 2005 with an aim to grow the investors’ wealth by picking up equity stocks of companies that possess the entire market capitalization spectrum. The distribution of the assets is made as per the following philosophy: -

1. 50-90 per cent of the assets will be allotted to the large-cap stocks,
2. 10-40 per cent will remain in mid-cap stocks and 
3. Not more than 10 per cent will stay committed to small-cap stocks.

The Asset Bucket, the NAV and the Progress Card
SBI Magnum Multicap has the possession of one of the biggest corpus in the realm of multicap investments. As of 31st March, 2018 it had a record possession of assets worth Rs. 4,704 crore and is expanding with a solid boost, every year.

Speaking about the per unit cost, the SBI Magnum Multicap Fund (Growth) NAV stood at Rs. 48.1114 as on 02nd May, 2018, experiencing a drop of 0.41% in its previously recorded value.

Now comes the most important part to discuss, the performance figures. Over the past 15 years, this fund has seen many ups and downs but never got succumbed to the scrambling market conditions. As of today, its performance is breaking all the previously set benchmark and is blowing gold all over the place. The following illustration will further clarify the numbers secured by this fund: -

Suppose that you had initiated an investment via SIP of Rs. 1000/- every month in SBI Magnum Multicap Fund (G) exactly three year ago, on 02nd May, 2015 for three years. Hence, till date you’d have stuffed Rs.37,000/- in this scheme which would have now valued at Rs. 47,175.60, i.e. returns earned worth a staggering 27.50% in a span of just three years.

The Current Standing
Due to its remarkable streak of achievement in the market and constant growth, SBI Magnum Multicap has emerged as one of the pioneering funds of the market. With a 5-star rating from CRISIL, it stands amongst the highest paying schemes of today. With solid investment methodology imbibed in its core and constant innovation towards bringing better results, it will continue to stay on top of the recommendations list of experts.

Thus, if you too wish to grow financially strong and for that want to take the shoulder of mutual funds, then you shall rest your money in SBI Magnum Multicap Fund (G). Not only investing in it could be highly rewarding for you in the future, but is extremely simple if done through MySIPonline.