SBI Magnum Multicap Scheme

One of the key challenges facing most investors nowadays is steep valuation of a large number of mid-sized companies. This almost limits the scope for alpha generation across sectors. Therefore, long-term investors should consider multi-cap schemes. As the valuation gap between large cap and mid-sized companies widens, it makes sense to be with multi-cap schemes. Going by the nature of multi-cap schemes, investors get the best of companies of all sizes -large or small.

Among multi-cap schemes, SBI Magnum Multicap Fund has distinguished itself over a long period of time by recording consistent performance in most cycles of markets. The scheme invests 50-90% in large-cap stocks, 10-40 % in mid-cap stocks and up to 10% in smallcap stocks. This diversification has worked for the scheme. In the past threeand five-year periods, the scheme has delivered 19.7% and 21.4% returns, while its benchmark, S&P BSE500, has given 12.7% and 14.3% returns during the same period.

In the past six months, the SBI Magnum Multicap Fund scheme's fund manager, Anup Upadhyay, has bought stocks that reflect his focus on value and growth themes. In selecting these stocks, he has zeored in on large-sized companies by balancing it with a reasonably good exposure to mid-andsmall-sized companies. A few prominent companies which are part of the scheme's portfolio include ONGC, ICICI Bank, NTPC and Yes Bank.Investors with at least three years of investment horizon may consider investing in the scheme.