SBI Magnum Global Fund Regular Growth

Introduction

Today, we are discussing SBI Magnum Global Fund Regular Growth. Magnum Global Fund is a Thematic MNC mutual fund scheme from SBI Mutual Fund. This fund is in existence for over 16 years after its launch on 30th June 2005.

The fund has Assets Under Management(AUM) worth Rs. 5,349.57 Crores as of August 2021. It is categorized as a medium-sized fund with having an expense ratio of 1.98%. The returns of the last 1 year are 57.79% and delivered 15.08% average annual returns since launch. The fund has invested majorly in FMCG, Engineering, Healthcare, Technology, Services sectors. It aims at long-term capital appreciation by investing in MNC companies.

Key Info

1. The SBI Magnum Global Fund has a Current Net Asset Value(NAV) of Rs. 283.76 for its Regular plan as of September 2021.

2. The fund-provided returns overtime periods are 55.77%(1year), 19.21%(3years), 14.07%(5years), and 15.07%(since launch). Category returns for the same period are 48.15%(1year), 13.73%(3years), and 11.98%(5years).

3. The fund currently holds Assets Under Management(AUM) worth Rs. 5349.57 crore as of Aug 31, 2021.

4. The expense ratio is 1.98% for the Regular plan as of Aug 31, 2021.

5. The Exit load is 1% if redeemed within 12 months.

6. Minimum investment required is Rs. 5000 and the minimum additional investment is Rs. 1000. Whereas, anyone can start SIP by investing a minimum of Rs. 500.

Benchmark & Investment strategy

The fund is an Open-ended Thematic-MNC Equity scheme in type and benchmarked against NIFTY MNC Total Return Index(TRI). So, the investment objective of the fund is to seek the correct exposure and provide the opportunity of long-term capital appreciation to the investors by investing predominantly in MNC companies yet with having a diversified portfolio. 

Asset allocation of SBI Magnum Global Fund Regular Growth

I. SBI Magnum Global Fund’s asset allocation comprises around 98.51% in equities, 0.0% in debts, and 1.49% in cash & cash equivalents.
II. The top 10 equity holdings constitute around 46. 57% and the top 5 sectors comprise around 28.39% of the fund’s assets.
III. The fund largely invests across market capitalizations with a growth-oriented investment pattern. Such as 53.75% in giant & large-cap companies, 38.74% in mid-cap, and 7.51% in small-cap companies.

Portfolio

I. No of stocks – 38.
II. Top 10 Stocks – 46.57%.
III. Top 5 Stocks – 28.39%.
IV. Price-Book(P/B) ratio – 9.56.
V. Price-Earnings(P/E) ratio – 46.98.

Top 10 Stocks of SBI Magnum Global Fund Regular Growth

I. Colgate-Palmolive – 7.10%.
II. Hindustan Unilever – 6.12%.
III. Nestle India – 5.30%.
IV. Divi’s Laboratories – 4.98%.
V. Grindwell Norton – 4.89%.
VI. Alphabet Inc Class A – 4.05%.
VII. HCL Technologies – 3.96%.
VIII. SFK India – 3.95%.
IX. Maruti Suzuki India – 3.51%.
X. P&G Hygiene & Healthcare – 3.45%.

Details :

I. NAV – Rs. 283. 76(as of September 2021).
II. IDCW – Rs. 86.68.
III. Returns – 15.08%(since launch in June 2005).
IV. Returns per year(5 years avg) – 14.08%.
IV. Benchmark – NIFTY MNC TRI.
V. Risk – Very High.
VI. Type – Open-ended (Equity Thematic MNC).
VII. Asset Under Management(AUM) – Rs. 5,350 Crores(as of August 2021).
VIII. Expense ratio – 1.98%(as of August 2021).
IX. Turnover – 27%.

  • Minimum investment – Rs. 5000.
  • Minimum additional investment – Rs.1000.
  • Lock-in period – Not applicable.
  • Minimum STP investment – Rs.500.
  • Minimum SWP investment – Rs.500.
  • Exit load – 1%, if redeemed within 365 days, Nill after 365 days.
  • Minimum withdrawal – Rs. 500.
  • Minimum SIP investment – Rs.500.
  • Minimum no of cheque – 12.

Taxation of SBI Magnum Global Fund Regular Growth

1. Gains over Rs. 1 lakh are taxed at a rate of 15% (Short term Capital Gain Tax or STCG) if units are redeemed within 1 year of investment.

2. No tax is to be paid as long as you continue to hold the units.

3. Gains of more than Rs. 1 lakh will be taxed at a rate of 10% (Long term Capital Gain Tax or LTCG). Any cess/surcharge is not included.

4. For units redeemed after 1 year of investment, gains of upto Rs. 1 lakh accruing from those units in a financial year shall be exempted from tax.

Dividends,
1. Dividends are added to the income of the investors and taxed according to their respective tax slabs.
2. Further, if an investor’s dividend income exceeds Rs. 5,000 in a financial year, the fund house also deducts a TDS of 10% before distributing the dividend.

Advantages & Disadvantages

1. Provides the scope to investors who wish to invest in MNC companies and appreciate their capital over the long term. Hence, investors can invest in foreign listed companies and companies that have turnover outside India.

2. The average returns of 2&5 years are better than the average category returns.

Who should invest in SBI Magnum Global Fund Regular Growth

This is a fund that invests mainly in MNC company shares or companies that make their turnover outside India. Risk-averse investors should avoid funds. Instead, they should invest in multi-cap funds or diverse their portfolio which provides complete freedom in investment and expectations of maximum gains.

Fund Manager

Mr. Anup Upadhyay is currently managing the SBI Magnum Global Fund. He is a B.Tech(Hons) degree and PGDM with having over 16 years of work experience, in which 13 years of experience in the financial services solely. He joined SBI in May 2007 as an analyst, and now he is the Head of Research managing various schemes.

Contact

Address – SBI Funds Management Ltd, 9th Floor-Crescenzo, C-38 & 39- G Block, Bandra-Kurla Complex, Bandra (East) Mumbai – 400051
Phone – 022-61793000 / 1800-425-5425
Fax – 022-22189663
E-mail – [email protected]
Website – http://www.sbimf.com

Leave a Comment