Among multi-cap schemes that focus on the quality of companies, SBI Magnum Multi Cap Direct Fund has distinguished itself by performing consistently well by sticking to its investment mandate.

It is one of the most famous multi-cap funds in the market right now. To know more about this fund and how it fares, read more below.

SBI Magnum Multi Cap Fund Review

Being a multi-cap fund, this fund is best suited for investors with moderate risk appetite and who have a long investment horizon of say 7-10 years to get its true reward.

SBI Magnum Multi Cap Fund Direct: NAV

The NAV of SBI Magnum Multi Cap Fund – Direct is ₹50.1063 as of 7th May 2018.

The NAV of the direct version of any fund will always be higher than that of its regular counterpart.

SBI Magnum Multicap Fund: Details

Before start investing in any mutual fund scheme, you should look into some basic key features.

Here is the key information about SBI Magnum Multi Cap Fund – Direct.

Launch Date 04 January 2013
Fund Category Equity – Multi-Cap
Plan Type Direct
Rating by Groww 4 Star
AUM (Fund Size) ₹4,086 crores
Riskometer Moderately High
Minimum SIP ₹500
Minimum SWP ₹1000
Performance w.r.t its Benchmark Has consistently outperformed its benchmark S&P BSE 500 TRI since its launch.
Age of the fund 5 years old
Expense Ratio 1.35%
Exit Load If redeemed between 0 Month to 6 Month; Exit Load is 1%; If redeemed between 6 Month to 12 Month; Exit Load is 0.5%;
Type  Open-ended

SBI Magnum Multicap SIP Minimum Amount

The minimum amount needed to start a SIP in SBI Magnum Multicap Direct Fund is ₹500.

SBI Magnum Multi Cap Fund – Direct: Performance

This fund has given high returns over the years and has consistently outperformed its benchmark. It is a fund with a high risk and has given a return of 19.96% since its launch.

Duration Returns
1 year  16.66%
3 years  17.14%
5 years  21.89%

This was among the lesser known SBI schemes a few years ago. But a steady improvement in performance has now made this fund a hard to ignore option in the multi-cap category.

In the last 3 and 5 year periods, the scheme has delivered 17.14% and 21.89% returns, while its benchmark, S&P BSE 500, has given 11.7% and 13.3% returns during the same period.

While the fund has undoubtedly scored high on the performance front, it has also managed to keep its risk metrics lower than the benchmark thereby resulting in an improved risk-reward profile.

SBI Magnum Multicap Fund: Objective

The primary objective of this fund is to provide investors with opportunities for long-term growth in capital along with the liquidity of an open-ended scheme through an active management of investments in a diversified basket of equity stocks spanning the entire market capitalization spectrum.

And the secondary objective is to generate consistent returns by investing in debt and money market securities.

The fund will invest 50-90% in large-cap stocks, 10-40% in mid-cap stocks and up to 10% in small-cap stocks.

However, as with any equity mutual fund, there can be no assurance that the investment objective of the Scheme will be realized and the Scheme does not assure or guarantee any returns.

SBI Magnum Multi Cap Fund: Comparison

Let us compare this fund with other top 3 contenders in the multi-cap category.

SBI Magnum Multi Cap Fund vs Motilal Oswal Multicap 35 Fund vs Aditya Birla SL Advantage Fund

Other top Funds Returns over the years Min SIP Investment Fund Size (Cr) Rating
1Y  3Y 5Y
Motilal Oswal MOSt Focused Multicap 35 Fund 15.01% 18.70% NA ₹ 1,000 ₹ 11,411 5
DSP BlackRock Opportunities Fund 13.55% 18.17% 20.92% ₹ 500 ₹ 4,805 5
Aditya Birla Sun Life Advantage Fund 11.62%  16.95% 23.24% ₹ 500 ₹ 5,738 5

As seen from the table, SBI Magnum Multi Cap is easily one of the best performing multi-cap funds in the market today and its AUM is also less as compared to its peers.

With such consistently high returns, this fund has managed to outperform nearly all other funds in its category.

SBI Magnum Multi Cap Fund: Plans

SBI Magnum Multicap Fund is available in both regular and direct plans.

  1. SBI Magnum Mutlicap Fund Direct

  2. SBI Magnum Mutlicap Fund Regular

SBI Magnum Multi Cap Fund – Direct: Change in Portfolio

Let us look into how much the fund managers of the SBI Magnum Multi Cap Fund – Direct have made changes in the fund’s portfolio in 2018.

New Shares Bought by SBI Magnum Multi Cap Fund 

7 new investments were done in 2018. The number of shares bought for these new investments and industry they belong to is:

Name of the Instrument Industry No. of New shares bought Current % NAV
Bandhan Bank Ltd. Banks 19,26,897 1.92
Ashok Leyland Ltd. Auto 42,54,889 1.32
National Aluminium Company Ltd. Non – Ferrous Metals 75,88,518 1.07
Kajaria Ceramics Ltd. Construction 7,86,154 0.96
Torrent Pharmaceuticals Ltd. Pharmaceuticals 3,43,126 0.91
Elgi Equipments Ltd. Industrial Products 13,70,000 0.74
Sandhar Technologies Ltd. Auto Ancillaries 1,04,756 0.07

Shares Sold by SBI Magnum Multi Cap Fund

As many as 11 companies stocks were dis-invested in 2018. The companies are:

Name of the Instrument Industry No. of shares Sold completely
Amber Enterprises India Ltd. Consumer Durables 134538
Power Mech Projects Ltd. Construction Project 111182
CESC Ltd. Power 350877
Dewan Housing Finance Corporation Ltd. Finance 794318
Blue Star Ltd. Consumer Durables 48150
JSW Steel Ltd. Ferrous Metals 2500000
VA Tech Wabag Ltd. Engineering Services 571000
Atul Ltd. Chemicals 142844
Tata Motors Ltd. Auto 1483880
Hindustan Petroleum Corporation Ltd. Petroleum Products 1018500
Mahindra & Mahindra Ltd. Auto 640000

These are all big names and were having a greater percentage of share of fund’s total NAV.

Change in Allocation of SBI Magnum Multi Cap Fund 

The major changes made in equity share portfolio by the fund manager in 2018 are as follows:

Name of the Instrument Industry Current % NAV % Change in quantity of shares Description
Infosys Ltd. Software 4.53 67.47% 758543 additional shares are bought in 2018
Indian Oil Corporation Ltd. Petroleum Products 3.01 100% 4004103 additional shares are bought in 2018
ITC Ltd. Consumer Non Durables 2.99 107.15% 2850000 additional shares are bought in 2018
Maruti Suzuki India Ltd. Auto 2.56 28.38% 30000 additional shares are bought in 2018
Gujarat State Petronet Ltd. Gas 2.52 27.32% 1340579 additional shares are bought in 2018
Bajaj Finance Ltd. Finance 2.14 76.06% 246157 additional shares are bought in 2018
Equitas Holdings Ltd. Finance 1.96 29.95% 1475000 additional shares are bought in 2018
Hindalco Industries Ltd. Non – Ferrous Metals 1.76 107.57% 1995324 additional shares are bought in 2018
Tech Mahindra Ltd. Software 1.62 -27.73% 456883 shares were sold in 2018
GAIL (India) Ltd. Gas 1.32 120.53% 1033952 additional shares are bought in 2018
Hero MotoCorp Ltd. Auto 1.11 -19.55% 35850 shares were sold in 2018
ICICI Prudential Life Insurance Company Ltd. Finance 1 437.76% 986122 additional shares are bought in 2018
HCL Technologies Ltd. Software 0.85 -56.84% 546018 shares were sold in 2018
UFO Moviez India Ltd. Media & Entertainment 0.79 75.03% 429136 additional shares are bought in 2018
Camlin Fine Sciences Ltd. Chemicals 0.75 73.9% 1479592 additional shares are bought in 2018
Deepak Nitrite Ltd. Chemicals 0.7 85.5% 613454 additional shares are bought in 2018
Blue Star Ltd. Consumer Durables 0.55 613.78% 295535 additional shares are bought in 2018
Indian Terrain Fashions Ltd. Textile Products 0.43 -28.67% 460000 shares were sold in 2018

As we can see from the tables above, the fund manager of SBI Magnum Multi Cap Fund – Direct, has made huge changes in the portfolio in 2018. The equity share of the fund’s portfolio has been reduced from 98% to 94% by the means of partial or complete dis-investment in non-performing stocks.

**The data taken here is from 1st January to 31st March 2018. As April monthly portfolio change is yet to published by SBI Mutual Fund.

This is due to the announcement of budget 2018. The fund manager has aligned the fund to the new announcement so that the fund can meet its objective.

Fund Manager of SBI Multicap

This fund is managed by:

Anup Upadhyay since Feb 2017

Education: Mr. Upadhyay is a B.Tech (Hons) degree and PGDM.

Experience: Prior to joining SBI AMC he has worked with SBI Mutual Fund and Tata Consultancy Services.

Funds Managed:

  1. SBI IT Fund – since Jun 2011
  2. SBI Equity Opportunities Fund – Series IV – since Sep 2016
  3. SBI Long Term Advantage Fund Series VI – since Apr 2018

SBI Magnum Multicap Fund Growth: Salient features

Some of the salient features of this fund are:

  1. In the past six months, the scheme’s fund manager, Anup Upadhyay, has bought stocks that reflect his focus on value and growth themes. In selecting these stocks, he has zeroed in on large-cap companies by balancing it with a reasonably good exposure to mid and small cap companies.
  2. In terms of risk, SBI Magnum Multi Cap Fund – Direct is among the funds with the lowest volatility in the multi-cap category. The standard deviation, which measures the risk, is much lower than the benchmark and top peers in the category.
  3. In 2018, BI Magnum Multi Cap Fund – Direct has increased its exposure to cash. The cash levels have increased from about 1.5% to nearly 6% in March 2018 and now it maintains at around 6%.
  4. Among multi-cap schemes, SBI Magnum Multi cap Fund – Direct has distinguished itself over a long period of time by recording consistent performance in most cycles of markets.
  5. SBI Magnum Multi cap Fund – Direct has a large cap bias. In the current market context sectors focused on domestic consumption and infrastructure are likely to deliver superior earnings growth in the next few years. Accordingly, sectors like financial services, consumer goods, energy & power, automobiles, and metals etc. has high allocations in this scheme.

How Much to Invest in This Fund to Get ₹ 1 Cr

This fund is best for an investor with a long investment horizon.

Here is the amount you need to invest in SBI Magnum Multi Cap Fund through monthly SIP to get a target amount of ₹1 Cr. 

Fund Type Equity – Multi-Cap
Target amount ₹1,00,00,000
Investment Period 10 years
Return per annum (since launch) 19.96%
Monthly SIP amount ₹31,112

Hence, to get to ₹1 crore in 10 years, you need to invest around ₹31,000 per month, assuming an annual return of around 20% per year.

**The expected returns taken above are as on 2nd May 2018 for calculating the monthly SIP amount. It is based on these fund’s past performance. The returns in mutual funds vary with time. The above returns are no guarantee of the fund’s future performance.

SBI Magnum Multicap Fund Alternative Options

If you to explore funds similar to SBI Magnum Multicap Fund or are looking for other options, check out these multi-cap funds.

1. Motilal Oswal Focused Multicap 35 Fund

This is a Multi-Cap Equity Oriented Mutual Fund launched on April 28, 2014.

It is a fund with moderately high risk and has given a return of 28.93% since its launch.

Returns per annum over the years from this fund are:

Duration Returns
1 year  15.01%
3 years  18.70%
5 years  NA

Invest in Motilal Oswal MOSt Focused Multicap 35 Fund Now

Rating by Groww 5 star
AUM (Fund Size) ₹11,411 Cr
Minimum SIP ₹1,000
Performance w.r.t its Benchmark Has consistently outperformed its benchmark NIFTY Smallcap 100 TRI since its launch.
Age of the fund 4 years old
Expense Ratio 1.49%

A very recent entrant to the category, this fund has delivered a good show in the three years since launch and also has a unique mandate.

The Scheme seeks to achieve long-term capital appreciation by primarily investing in a maximum of 35 equity & equity related instruments across sectors and market-capitalization levels.

2. DSP BlackRock Opportunities Fund

This is a  Multi-Cap Equity Oriented Mutual Fund launched on January 1, 2013.

It is a fund with moderately high risk and has given a return of 18.65% since its launch.

Returns per annum over the years from this fund are:

Duration Returns
1 year  13.55%
3 years  18.17%
5 years  20.92%

Invest in DSP BlackRock Opportunities Fund Now

Rating by Groww 5 star
AUM (Fund Size) ₹4,805 Cr
Minimum SIP ₹500
Performance w.r.t its Benchmark Has consistently outperformed its benchmark NIFTY 500 TRI since its launch.
Age of the fund 5 years old
Expense Ratio 1.28%

The scheme seeking to generate long-term appreciation from a portfolio constituted of equity and equity-related securities of large and mid-cap companies.

It is a flexible cap fund with no pre-defined market capitalization limit. However, the fund has had a bias towards large caps.

In recent times, the fund has maintained a 70% plus large-cap exposure, with mid-cap stocks at about 20%. It is overweight on large caps relative to the category.

3. Aditya Birla Sun Life Advantage Fund

This is a Multi-Cap Equity Oriented Mutual Fund launched on January 1, 2013.

It is a fund with high risk and has given a return of 20.18% since its launch.

Returns per annum over the years from this fund are:

Duration Returns
1 year  11.62%
3 years  16.95%
5 years  23.24%

Invest in Aditya Birla Sun Life Advantage Fund Now

Rating by Groww 4 star
AUM (Fund Size) ₹5,738 Cr
Minimum SIP ₹1,000
Performance w.r.t its Benchmark Has consistently outperformed its benchmark S&P BSE 200 since its launch.
Age of the fund 5 years old
Expense Ratio 1.15%

The objective of this scheme is to achieve long-term growth at relatively moderate levels of risk through a diversified investment approach, the investment emphasis of the scheme would be on identifying companies with sound corporate management and prospects of good future growth.

Conclusion

SBI Magnum Multi Cap Fund – Direct is managed by a good fund manager and has given stellar returns in last 1Y, 3Y, and 5Y.

Its AUM isn’t too big as compared to other top multi-cap funds and the expense ratio is also less as compared to most of its peer.

Though the fund has a lower risk than its peers, you need to prudently decide if this fund will be worth your money. If you opt for this fund, ensure that the fund is in line with your financial goals.

Else, you can choose above mentioned best alternatives which meet your investment goal.

Read More: 10 Tips on Investing in Mutual Funds

To look at some of the best performing funds from every category of mutual funds, check out Groww 30 best mutual funds to invest in 2018.

Happy Investing!

Disclaimer: the views expressed here are of the author and do not reflect those of Groww