MF QueryBoard

MF QueryBoard

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First of all, it is important to note that you should not pay much attention to market noise when you are investing. By the time you will be reading this, the Union Budget would have been already out. You should invest in a fund with a financial objective in your mind.

Hence, you should think of investment keeping the budget and reactions at bay. As far as the fund in the query is concerned, here are our thoughts on the same. SBI Magnum Multi-Cap Fund has performed well across market cycles on a consistent basis. This fund invests 50 to 90 per cent in large-cap stocks, 10 to 40 per cent in mid-cap stocks and up to 10 per cent in small-cap stocks.

In terms of performance based on trailing returns ending January 22, 2020, apart from three months’ and six months’ performance, the fund has out-performed its benchmark (S & P BSE 500 TRI) and category in all other time periods. If we compare the rolling returns of the fund with respect to its benchmark then the fund has out-performed the benchmark in all the time periods of one year, three years and five years. The following table would give you a glimpse of how it performed in terms of rolling returns.


The reward of investing in this fund has its own risk. If this fund has given a return of 110 per cent in a year (March 2009 – March 2010), then it has even fallen by 60 per cent in a year (December 2007 – December 2008). So, investing in this fund would surely call for attestation of one’s risk profile. If you are aggressive enough to stomach the risk then surely invest in this fund. Also, it would be better if you have a proper portfolio diversified across various asset classes and are dedicated towards your financial goals.



Aditya Birla Sun Life India GenNext Fund has performed really well in the past one year. The objective of this scheme is to invest in equity or equity-related instruments of companies that are expected to benefit from the rising consumption patterns in India, which in turn is getting fuelled by high disposable incomes of the younger generation. This scheme invests mainly in companies that cater to the demand of retail consumers. It is always better to avoid funds that have barely defined its investment mandate. Instead, you would be better off investing in a multi-cap fund that provides the fund management team complete freedom to invest in companies which have potential to create wealth for its unit holders. Being a thematic fund, this fund comes with a risk. Although since years it has been performing well, this doesn’t make it risk-free. In fact, if you have dedicated this fund towards your child’s education then it is advisable to replace this fund with some quality multi-cap funds, index funds or large-cap funds, depending upon your risk appetite. If you wish to achieve your need, which in your case is your child’s education, then it requires a stable portfolio. This is because you won’t wish to compromise on your financial goals that are your needs. As far as its performance is concerned, as mentioned earlier, it has performed quite well. Below is the table showing its performance on a trailing basis with risk, respect to its benchmark and category.


As far as stock allocation is concerned, it is less concentrated. The top ten stocks form 35 per cent of the total assets. However, when it comes to sector allocation, it is very concentrated. The top three sectors account for 63 per cent of the total assets. Its top three sectors are financial, FMCG and healthcare. If you wish to hold this fund then don’t allocate to the financial goals that are your needs. Also, the investment horizon for such funds needs to be long enough. And for your child’s education, as said before, invest in a more stable portfolio.

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