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SBI Magnum Global Fund by SBI Mutual Fund is a unique scheme that mainly invests in the multi national companies. If you are an investor who is looking for such scheme, then this investment opportunity is exactly for you. In the below article, you will get to read about this scheme in detail as per the research done by the experts at MySIPonline which will help you decide whether or not investing in it is a good decision.
What Is the Investment Objective?
The investment objective of this scheme by SBI Mutual Fund is to help investors earn long-term capital appreciation by investing in a diversified manner mainly in MNCs. Here, the multi national companies are those in which the major share holding is held by foreign entity, Indian companies with 50% turnover which is received from regions outside India, or foreign listed companies.
Which Investment Strategies Is Followed?
Under this scheme, the investment strategy which is being followed is the bottom-up approach that is used at the time of stock-picking, selection of companies and sector to invest in, all falling under the criteria of MNC.
Is SBI Global Fund’s Asset Allocation Done Wisely?
Both the tables given below shows the list of sectors and companies in which the assets under this scheme have been allocated.
The sectors as mentioned in the above table are all the ones that are growing with time and have a scope to provide reasonable returns on the investment made in them.
The companies that have been selected keeping in mind the MNC criteria are all the renowned ones that have goodwill in the market and stable high income sources. Investment in these can help one to take benefit of the revenue earned by them.
What Are the Returns Generated by SBI Magnum Global Fund?
The trailing returns that have been generated by this scheme are as shown in the table given below.
Although the one-year return generated by this scheme is negative, the three year and five year returns are 5.60% and 19.53%, respectively which show drastic improvement with time. In five-year time, it has even been successful in outperforming the return rate yielded by its benchmark NIFTY MNC TRI.
How Risky Is SBI Magnum Global Fund Growth?
The standard deviation of this scheme is lower than the benchmark’s but higher than the category’s SD. Its Beta is less than its category’s Beta. This shows that to some extent it is prone to fluctuations.
The Sharpe ratio of the scheme is 0.09 which is much less than both the others revealing that the returns generated with the risk taken are comparatively less.
The Final Note
The strategies followed by Mr. Anup Upadhyay though seems to be fine and so does the asset allocation, the risk measures don’t appear to be impressive. The performance of SBI Magnum Global Fund has surely improved with time and is further anticipated to move on the same track with improvement in the correction phase.
Please note that this scheme is for aggressive investors who have high risk appetite.
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