SBI Magnum Mid Cap Fund aims to provide investors with opportunities for long term growth in capital along with the liquidity of an open-ended scheme by investing predominantly in a well-diversified basket of equity stocks of Mid Cap companies.
They introduced a mid cap fund under the name SBI Mutual Fund Direct Growth in January 2013.
This fund is compared with the benchmark Nifty 100 Index TRI and Nifty 50 Index TRI and holds an AUM of Rs. 15957.21 crores.
Investing in this fund requires a minimum lump sum of Rs. 5,000 and a minimum monthly SIP of Rs. 500.
SBI Magnum Mid Cap Fund comprises 4 plans,
- Direct Growth Plan (We speak about this plan in this article)
- Regular Growth
- Direct – IDCW (Dividend Plan)
- Regular – IDCW (Dividend Plan)
As a reader, you will find all the details about this fund that you need to know before investing.
SBI Magnum Mid Cap Fund Direct Growth NAV:
The current NAV of SBI Magnum Mid Cap Fund Direct Growth is 222.43 (as of March 4, 2024).
The NAV of other plans of the same fund are,
- Regular Growth – 200.79
- IDCW – Regular Plan – 82.05
- IDCW – Direct Plan – 126.10
During the NFO period, all plans under the SBI Magnum Mid Cap Fund had an NAV of Rs. 10.
The Direct Growth Plan has provided better returns and performance than the fund’s other plans.
Choosing a Direct Fund is one of the best options if you can manage the risk appetite of the fund.
Regular plans are best if you need a professional to manage your fund.
SBI Magnum Mid Cap Fund Direct Growth Performance:
SBI Magnum Mid Cap Fund is an open-ended scheme that invests in large-cap companies (Top 100 companies in the Indian share market per share of market capital).
This fund’s objective was to outperform the benchmark (Nifty 100 TRI) with comparatively low risk.
The fund has performed at a CAGR of 24.52% per annum in the last 5 years vs 25.45% to Nifty 100 TRI (benchmark). The category average has performed at a CAGR of 24.21%.
SBI Magnum Mid Cap Fund has underperformed its category average in 2 and 5 years of performance in all the available plan structures.
The fund has grown 82% higher than the Nifty 50 index in the last 5 years.
Here is a quick snapshot of the fund’s performance compared with the benchmark and category average.
This fund is recommended for long-term outperformance if you want to outperform the category average or benchmark over the medium or long term.
The 2 years performance of the fund is 7.39% lower than the benchmark and 3.28% lower than the category average.
In 5 years of performance, the SBI Magnum Mid Cap Fund direct growth plan has performed 0.93% higher than the benchmark and 0.31% higher than the category average.
The same fund has underperformed the benchmark and category for the last 1 year.
Once again, the performance calibration proves that this fund should be invested if your goal is mid or long-term to outperform the category average or benchmark.
Fundamental Analysis Ratios:
P/B – 6.13
P/E – 41.81
SBI Magnum Mid Cap Fund Portfolio:
The portfolio of this scheme includes equity (91.93%), debt (0.06%), and others (8.01%).
Equity Holdings (91.93% of the total portfolio):
This fund holds 72 stocks, which are divided as follows
- Large Cap Investments – 0%
- Mid Cap Investments – 0%
- Small Cap Investments – 0%
- Others – 91.93%
Debt Holdings (0.06% of the total portfolio):
- Treasury Bills – 0.06%
Others (8.01% of the total portfolio)
- TREPS – 7.93%
- Margin – 0.33%
- Net Receivables – -0.25%
Fund Portfolio across Industries:
- Financial – 12.3%
- Construction – 9.5%
- Services – 12.0%
- Capital Goods – 10.2%
- Textiles – 7.0%
- Chemicals – 6.1%
- Metals & Mining – 5.1%
- Automobile – 15.3%
- Healthcare – 9.0%
- Others – 13.6%
Top 20 Holdings:
- CRISIL Ltd – 3.59%
- Tube Investments of India Ltd Ordinary Shares – 3.42%
- Torrent Power Ltd – 3.37%
- Sundaram Finance Ltd – 3.33%
- Schaeffler India Ltd – 3.19%
- Thermax Ltd – 3.01%
- Indian Hotels Co Ltd – 2.68%
- Sheela Foam Ltd – 2.39%
- Carborundum Universal Ltd – 2.34%
- Coromandel International Ltd – 2.30%
- Page Industries Ltd – 2.24%
- Max Healthcare Institute Ltd Ordinary Shares – 2.20%
- Procter & Gamble Hygiene and Health Care Ltd – 2.16%
- Gokaldas Exports Ltd – 2.13%
- K.P.R. Mill Ltd – 2.11%
- Cholamandalam Investment and Finance Co Ltd – 2.08%
- Sona BLW Precision Forgings Ltd – 2.04%
- JK Cement Ltd – 1.95%
- Bharat Forge Ltd – 1.81%
- Aether Industries Ltd – 1.81%
17.9% of this scheme’s portfolio is made up of its Top 5 securities, and 33.4% is made up of its Top 20 securities.
Risk Ratios of the SBI Magnum Mid Cap Fund:
A mutual fund’s risk ratio should be analyzed before investing in it.
For predicting the volatility and risk of returns, we calculate a standard deviation, an alpha, a beta, and a Sharpe ratio.
Below are the details of the fund’s three-year risk factors compared to the category average over this period.
- Standard Deviation – 13.89 vs 14.71
- Alpha – 0.01 vs (-) 0.81
- Beta – 0.81 vs 0.88
- Sharpe Ratio – 1.1 vs 1.05
The fund has low risk compared to the category average.
Compared to the category average, it also provides a better risk-adjusted return.
SBI Magnum Mid Cap Fund Direct Growth Expense Ratio:
Any mutual fund scheme’s expense ratio is crucial and impacts its performance.
The expense ratio or TER of SBI Magnum Mid Cap Fund direct growth is 0.84%. These are the expense ratio details for the same fund with different plans.
- Regular – Growth – 1.72%
- Regular – IDCW – 1.72%
- Direct – IDCW – 0.84%
This scheme’s direct growth plan is the best choice.
SBI Magnum Mid Cap Fund Managers:
The fund manager’s history is essential information for every mutual fund investor.
Two managers manage this fund. Sohini Andani and Pradeep Kesavan.
Sohini Andani has been managing the fund since January 2013. Before joining SBI AMC, he worked at ING Investment Management Pvt. Ltd., ASK Raymond James & Associates Pvt. Ltd., LKP Shares & Securities Ltd., Advani Share Broker Pvt. Ltd., CRISIL, and K R Choksey Shares & Securities Pvt. Ltd. Apart from this fund, he manages two more schemes at SBI AMC.
Pradeep Kesavan has been managing the fund since December 2023. Before joining SBI AMC, he worked with Elara Capital, Accenture Strategy, Morgan Stanley, and 3i Infotech. Apart from this fund, he manages 41 more schemes at SBI AMC.
Conclusion:
- SBI Magnum Mid Cap Fund is designed for investors with long-term goals.
- Three years, five years, and performance since inception are low compared to benchmark and category averages.
- The expense ratio of this fund is higher than the category average.
- Portfolios are well diversified within 72 equity securities and a few cash components.
- Hold low risk compared to the category average.
- The fund manager’s track record is awesome.