Launched in September 2005, SBI Magnum Multicap Fund is classified under the equity diversified category of CRISIL Mutual Fund Ranking. It is featured in the top 30 percentile (CRISIL Fund Rank 1 or 2) in the past 10 consecutive quarters ended March 2017. The fund's quarterly average assets under management (AUM) was at Rs 1,671 crore in March 2017 and the fund manager is Richard D'Souza.
The fund aims 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 capitalisation spectrum and in debt and money market instruments.
The fund outperformed the benchmark-S&P BSE 500 Index-and its category (funds ranked under the equity diversified category in March 2017 CRISIL Mutual Fund Ranking) in the past five years. It delivered 20.12 per cent three-year annualised returns, outperforming the category's 16.08 per cent and the benchmark's 11.39 per cent.
Initially, the fund underperformed its benchmark and the category, but its performance picked up after the European crisis (July 2013 to February 2015). The fund bettered the benchmark and the category; generating 32.26 per cent annualised returns compared with the category's 31.99 per cent and the benchmark's 29.63 per cent during the recent global liquidity and domestic reforms driven rally.
An investment of Rs 1,000 in the fund on September 29, 2005 (inception) would have grown to Rs 4,268 on June 16, 2017 at an annualised rate of 13.17 per cent - surpassing the benchmark, which would have grown to Rs 3,769 (11.98 per cent). On a similar note, Rs 1,000 invested per month in the fund since inception via a systematic investment plan (SIP), totaling Rs 1.42 lakh, would have grown to Rs 3.40 lakh on June 16, 2017 at 14.01 per cent annualised returns. A similar amount invested in the benchmark would have paid Rs 2.86 lakh at 11.33 per cent.
The fund's portfolio holds 64 stocks from 26 sectors as of May 2017. It is well diversified at the stock level as suggested by average 57 stocks held in the past three years. The top five sectors, on average, constituted 52.50 per cent of the portfolio, which indicates substantial sectoral concentration. Over this period, banks, on average, had the highest exposure of 17.02 per cent followed by software (10.21 per cent), consumer non-durables (9.26 per cent), finance (8.66 per cent) and pharmaceuticals (7.36 per cent).
The fund has consistently held nine stocks for the past three years from its investment universe of 142 stocks, which suggests the fund manager deploys active churn. Top holdings among the consistently held stocks include Infosys, State Bank of India, Kotak Mahindra Bank, Maruti Suzuki India and HCL Technologies; the last two are amongst the top contributors. Six of the nine consistently held stocks have outperformed the fund's benchmark in their holding periods.