A multi-cap scheme would be a good option for investors not focused explicitly on a single portfolio. An important advantage of investing in the SBI Magnum Multicap Fund scheme is that the fund mostly keeps in mind the growth stories that play across companies of all sectors and all sizes.
In this way, you can increase their chances of acquiring the best companies of all sizes by investing in multi-cap schemes. SBI Magnum Multicap Fund has retained its name in the multi-cap scheme by continuously producing during most of the market cycles.
The fund’s main objective is to give its investors long-term capital growth opportunities through active investment management in a diversified equity stock spanning the entire spectrum of market capitalization.
As your investment horizon is 25 years, check your endurance. Your fund will go through many ups and downs. There will be years when returns can be negative. If you continue to invest for 25 years, your fund will give you good returns.
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Here is the % of the SBI Magnum Multicap Fund
- 50% -90% in large-cap stocks
- 10-40% in midcap stocks
- 10% in small-cap stocks.
- 12% and 20% returns over the last three years and five years.
- S&P BSE 500, has given 7% and 14% returns in the same period
The company’s fund manager Anoop Upadhyay has invested in various disciplines in the last six months, which may fit well in the long term.
Some crucial points why you should invent this fund
- The fund invests at least 65% of its capital in equity and equity-related instruments by market capitalization.
- The fund invests up to 35% in debt and money market.
- The fund follows a bottom-up stock-taking strategy and selects companies through sectors/genres.
The key feature of SBI Magnum Multi-cap Fund
- It is a multi-cap fund; if you are a moderate risk appetite, then it would be best suited for you. It has a long investment horizon to make a tremendous profit of 7-10 years.
- It is equity – multi-cap.
- It is an open-ended scheme fund.
- If you redeem mutual fund units within six months, the exit load will charge by 1% from the date of allocation of the units. If you redeem the units between six or one years from the date of allocation of units, the exit load will be 0.5% charge.
Note: SBI Magnum Multi-cap Fund is a good investment fund. You can invest in it through SIP. It is a simple fund and is suitable for long term investment.
Conclusion:
If your risk appetite is moderate to high, tend to switch from one profile to another depending on the market. If you want a portfolio of medium-risk, then you should invest more in multi-cap schemes. You should invest more in mid-cap and small-cap schemes if you want it to be aggressive to maximize funds in the long term.