Are you looking for a diversified investment option that allows you to invest in global markets? Look no further than SBI Magnum Global Fund. This mutual fund offers a unique investment strategy that helps investors tap into the potential of global markets. In this comprehensive guide, we will take a closer look at SBI Magnum Global Fund, including its investment objective, investment strategy, historical performance, and expert opinions. We will also discuss the risks and considerations involved in investing in this mutual fund and compare it to other global funds in the market.
Introduction to SBI Magnum Global Fund
SBI Magnum Global Fund is an open-ended equity mutual fund that invests in global markets. The fund aims to provide long-term capital growth by investing in a diversified portfolio of international stocks. The stocks are selected based on the fund’s investment objective and strategy, which we will discuss in detail in the next section.
The fund is managed by SBI Funds Management Private Limited, one of India’s leading asset management companies. The fund was launched in 1994 and has since then provided investors with exposure to global markets.
Understanding the Investment Objective of SBI Magnum Global Fund
The investment objective of SBI Magnum Global Fund is to provide long-term capital growth by investing in a diversified portfolio of international stocks. The fund aims to achieve this objective by investing in companies that have a strong competitive advantage, good management, and solid financials.
The fund aims to invest at least 80% of its total assets in equity and equity-related securities of companies listed on international stock exchanges. The remaining 20% of the fund’s assets may be invested in debt and money market instruments.
The Fund’s Investment Strategy and Portfolio Allocation
SBI Magnum Global Fund’s investment strategy is based on a combination of top-down and bottom-up approaches. The top-down approach involves analyzing the global macroeconomic environment to identify trends and opportunities. The bottom-up approach involves analyzing individual companies to identify those that have strong fundamentals and growth potential.
The fund’s portfolio allocation is based on the market capitalization of the companies in which it invests. The fund aims to maintain a diversified portfolio of companies across sectors and geographies. As of June 30, 2021, the fund’s portfolio was allocated as follows:
- United States: 40.42%
- Japan: 16.26%
- China: 11.98%
- Switzerland: 6.36%
- United Kingdom: 5.97%
- Germany: 4.85%
- South Korea: 4.62%
- Other countries: 9.54%
Historical Performance and Track Record of SBI Magnum Global Fund
SBI Magnum Global Fund has a track record of providing consistent returns to its investors. The fund has outperformed its benchmark, MSCI AC World Index, over the long term. As of June 30, 2021, the fund’s 1-year, 3-year, 5-year, and 10-year annualized returns were 48.12%, 20.25%, 16.24%, and 14.60%, respectively.
It is important to note that past performance is not indicative of future results. Investors should always do their due diligence before investing in any mutual fund.
Risks and Considerations When Investing in SBI Magnum Global Fund
Investing in SBI Magnum Global Fund comes with certain risks and considerations that investors should be aware of.
Firstly, investing in international markets involves currency risk. Fluctuations in exchange rates can impact the fund’s returns.
Secondly, investing in equity markets involves market risk. Stock prices can be volatile and unpredictable, which can impact the fund’s returns.
Lastly, investing in SBI Magnum Global Fund involves concentration risk. The fund’s portfolio is heavily concentrated in a few countries and sectors, which can impact its performance.
How to Invest in SBI Magnum Global Fund
Investing in SBI Magnum Global Fund is easy and hassle-free. Investors can invest in the fund through their demat account or by filling out the application form available on the SBI Funds Management website.
Investors can also invest in the fund through the systematic investment plan (SIP) route, which allows them to invest a fixed amount at regular intervals.
Expert Opinions and Reviews on SBI Magnum Global Fund
SBI Magnum Global Fund has received positive reviews from experts and analysts. Morningstar, a leading investment research firm, has given the fund a 5-star rating. The fund has also won several awards for its performance and investment strategy.
Comparison with Other Global Funds in the Market
SBI Magnum Global Fund faces stiff competition from other global funds in the market. Some of the other popular global funds include Franklin India Feeder – Franklin U.S. Opportunities Fund, DSP BlackRock World Gold Fund, and ICICI Prudential US Bluechip Equity Fund.
Investors should compare the performance, investment strategy, and risk profile of these funds before making an investment decision.
Frequently Asked Questions About SBI Magnum Global Fund
- What is the minimum investment amount for SBI Magnum Global Fund?
The minimum investment amount for SBI Magnum Global Fund is Rs. 5,000.
- What is the exit load for SBI Magnum Global Fund?
The exit load for SBI Magnum Global Fund is 1% if redeemed within 365 days of investment.
- Can NRIs invest in SBI Magnum Global Fund?
Yes, NRIs can invest in SBI Magnum Global Fund through the NRE or NRO account.
Conclusion and Final Thoughts on SBI Magnum Global Fund
SBI Magnum Global Fund offers investors a unique opportunity to invest in global markets through a diversified portfolio of international stocks. The fund’s investment objective, strategy, and historical performance make it a compelling investment option for investors looking to diversify their portfolio. However, investors should also be aware of the risks and considerations involved in investing in the fund. They should also compare the fund with other global funds in the market before making an investment decision.
Investors who are willing to take a long-term view and have a high-risk appetite may consider investing in SBI Magnum Global Fund. As always, investors should consult with their financial advisor before making any investment decision.