The SBI Magnum MID Cap Fund : mutf_in: sbi_magn_midc_nca2xd is one of the leading equity mutual funds offered by SBI Mutual Fund. It invests in mid-cap stocks, as the name suggests. Mid-cap stocks are those stocks of companies which have market capitalization ranging from 500 crores to 10,000 crores INR. Smaller than large-cap companies and higher than small-cap companies think these companies are on the bubble.
Why Choose SBI Magnum MID Cap Fund (mutf_in: sbi_magn_midc_nca2xd)?
The fund is best suited for those investors who wish to achieve capital appreciation over the long-term and can take a moderately high risk towards equity investments. This fund has grown on investing in the growth potential of mid-cap stocks, which can yield high returns with higher risk compared to large-cap stocks. This fund invests in companies having high growth prospects but have not been identified by the institutional investors. These companies generally are in the early to growth phase of their business cycle, giving their stock prices high volatility but can also yield massive capital appreciation.
mutf_in: sbi_magn_midc_nca2xd Key Features
- Fund Category:
The scheme is an open-ended equity scheme investing in mid cap stocks. - Risk Profile:
The fund is considered to have moderate-high risk, due to exposure to midcap stocks which are riskier than large cap stocks. - Investment Horizon:
You can invest in for SBI Magnum MID Cap Fund for 3 to 5 year. Mid-cap companies may take longer to produce substantial returns. - Fund Manager:
The fund is held and managed by the experienced hands at SBI Mutual Fund, which also makes it a disciplined investment house with strong research capabilities. - Expense Ratio:
The Expense ratio for SBI Magnum MID Cap Fund is reasonable, typically in the range of 1.5 to 2%, which makes it attractive for Long term investment. - Minimum Investment:
For SIPs, the minimum investment amount is generally ₹500, while for lump sum investment it is ₹5,000.
Performance of SBI Magnum MID Cap Fund (mutf_in: sbi_magn_midc_nca2xd)
Historical Performance
The performance of the SBI Magnum MID Cap Fund (mutf_in: sbi_magn_midc_nca2xd) has been remarkable in the long term, outperforming its benchmark index in several years. As of the latest reports:
| Period | Fund Return | Benchmark Return | Category Average Return |
|---|---|---|---|
| 1 Year | 15.48% | 12.38% | 14.20% |
| 3 Years | 19.25% | 17.72% | 18.58% |
| 5 Years | 16.02% | 14.75% | 15.58% |
| Since Inception | 18.70% | 16.30% | 17.45% |
Risk and Return Analysis
Although the fund may provide opportunities for high returns, potential risks associated with investing in mid-cap stocks include:
- Market Volatility: Mid-cap stocks can be more volatile to market changes and economic declines.
- Sector Concentration Risk: The fund invests in a particular sector, which can be significantly affected by a low or negative performing market.
Investors should evaluate their risk tolerance before investing in this fund and consider diversifying into a portfolio of investments carrying other risk profiles.
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Investment Strategy of SBI Magnum MID Cap Fund (mutf_in: sbi_magn_midc_nca2xd)
SBI Magnum MID Cap Fund’s investment approach revolves around identifying mid-cap companies which have high growth but are relatively cheap from a valuation standpoint. The fund follows a bottom-up stock selection technique where it concentrates on companies which have sound fundamentals, well experienced management and good business prospects.
The fund typically invests in sectors such as:
- Consumer Goods
- Technology
- Healthcare
- Automobiles
- Financials
By focusing on these areas, the fund intends to create a portfolio of stocks with above average capital appreciation potential. The fund’s managers regularly follow market patterns, economic changes and companies’ earnings to adapt the portfolio as needed.
Taxation on SBI Magnum MID Cap Fund (mutf_in: sbi_magn_midc_nca2xd)
Investors need to remember the tax treatment when investing in mutual funds such as SBI Magnum MID Cap Fund, especially for equity funds. Here’s a brief overview of the tax treatment:
| Type of Gain | Tax Rate |
|---|---|
| Short-Term Capital Gains (STCG) | 15% (if held for less than 1 year) |
| Long-Term Capital Gains (LTCG) | 10% (if held for more than 1 year, exceeding ₹1 lakh) |
FAQ About SBI Magnum MID Cap Fund (mutf_in: sbi_magn_midc_nca2xd)
What is SBI Magnum MID Cap Fund (mutf_in: sbi_magn_midc_nca2xd)?
SBI Magnum MID Cap Fund is an open-ended equity fund which focuses on mid-cap stocks and aims to achieve long term growth gains.
Is SBI Magnum MID Cap Fund (mutf_in: sbi_magn_midc_nca2xd) suitable for conservative investors?
No, as this fund is for moderate to high riskers as mid cap stocks are typically more volatile than large cap stocks.
What is the minimum investment amount for SBI Magnum MID Cap Fund (mutf_in: sbi_magn_midc_nca2xd)?
The minimum investment for SIPs is ₹500 and for lump sum investment, it is ₹5,000.
How has the SBI Magnum MID Cap Fund (mutf_in: sbi_magn_midc_nca2xd) performed historically?
Over the years, the fund has beat its benchmark over the 1-year, 3-year and the 5-year periods, giving its investors a high return on their investment.
What are the tax implication of investing in SBI Magnum MID Cap Fund (mutf_in: sbi_magn_midc_nca2xd)?
For long-term capital gains, you are taxed at 10% (over and above ₹1 lakh), and for shortterm capital gains, it’s 15%.
mutf_in: sbi_magn_midc_nca2xd : Conclusion
SBI Magnum MID Cap Fund (mutf_in: sbi_magn_midc_nca2xd) : An ideal mutual fund for investors who wish to gain from the potential of mid-cap stocks. With a well-diversified portfolio, solid management and a track record of steady returns it can be a great investment for people willing to take a moderate to high risk for possible high reward.