SBI Mag Equity-Steady performer, apt for Largecap investors

SBI Magnum Equity Fund is an open ended fund which seeks to provide capital by investing in high growth companies. As per Arnav Pandya's analysis, this fund has remained a consistent performer across varied investment period and is suitable for investors looking towards an exposure of large cap stocks in their portfolio.

• The fund invests in large cap stocks with a specified strategy that seeks to ensure that the performance of the fund is able to beat the Benchmark consistently over a period of time. The fund had around 28 per cent of its portfolio in Financial services at the end of March 2011. This was followed by Energy at 16 per cent and Information Technology at 13 per cent. Reliance Industries was the top stocks in the portfolio with an exposure of nearly 9 per cent followed by Infosys, HDFC Bank, SBI and ICICI Bank. The fund had a portfolio turnover ratio of just above 2 and a beta of 0.91. The fund was an outperformer over the Benchmark the BSE 100 index over a one, three and five year time period.
• Six months later, the fund continued with its efforts and this was clearly reflected in the portfolio. Financial services remained the top sector with an exposure of nearly 24 per cent followed by Consumer goods, Automobile and IT.  The funds portfolio turnover ratio dropped to 1.7. Infosys was now the top holding with an exposure of 6 per cent followed by Bharti Airtel, SBI, ICICI Bank, HDFC Bank andITC. The fund now had CNX Nifty as the benchmark and it was outperforming the benchmark over the one and three year time period.
• The portfolio of the fund remained steady and at the end of March 2012 the fund had the top exposure to financial services followed by IT, energy and Pharma.  The portfolio turnover ratio declined further to 1.3. ICICI Bank and Infosys were two stocks in the portfolio that had an exposure of over 7 per cent followed by ITC, Bharti Airtel, Dr Reddys Lab and SBI. The fund had around 10 per cent of its portfolio in current assets. The fund was a strong outperformer over the one and three year time periods.
• The fund had around 31 per cent of its portfolio in financial services at the end of September 2012, Energy, IT and Automobile were some of the other sectors that had a high exposure. HDFC Bank was the top stock in the portfolio with an exposure of nearly 10 per cent. This was followed by ITC, Reliance Industries, ICICI Bank, SBI, Infosys and HDFC Ltd. The fund now had a beta of 0.79 and a portfolio turnover ratio of around 1.5. The fund continued to outperform the Benchmark over the one and three year time period.
• The fund has been a consistent performer and is suitable for investors looking towards an exposure of large cap stocks in their portfolio. It is meant for those who want stability as the fund is managed by consistent adherence to its specific strategy rather than just being in the search for high returns.