State Bank of India (SBI) Mutual Fund's Magnum Equity Fund is a great buying opportunity, since it has given a superlative return of 42% in the last one year. Here are 7 reasons why you could buy the SBI Magnum Equity Fund, even though we wish to emphasize that past track record is no guarantee of future performance. Investors should seek professional advise as well, though we are highlighting mere facts.
Last one year return of 42 per cent
In the last one year SBI Magnum Equity Fund has given a super return of 42 per cent. This is more or less in line with what benchmark indices have given in the last one year.
Quality bluechip portfolio
The fund has a some of the blue chip stocks in its portfolio comprising the likes of ICICI Bank, HDFC Bank, Reliance Industries, Infosys, TCS and State Bank of India. If the benchmark indices move up, the fund is likely to benefit.
Good returns in the last 10 years
It's easy to generate returns in the last one year, since indices have gone up during the period. However, if we look at the last 10 year returns as well SBI Magnum Equity Fund has generated a return of 20 per cent, making it a decent prospect.
Small amount in SIP required
If you are looking to invest in the scheme the minimum Systematic Investment Plan (SIP) is Rs 1500. This is pretty reasonable for those looking at returns through SIP.
Small amount beneficial
The minimum withdrawal amount has also been kept at Rs 1000, which is not bad at all.
Super returns in the last 10 years
The returns in the last 10 years is almost double that of banks. It's been difficult to have gotten returns of more than 10 years at a bank, while one has got 20 per cent in the last 10 years from the scheme.
Gains in the Sensex to benefit fund
SBI Magnum Equity Fund is likely to benefit from any rise in the markets as most of the shares are from the portfolio are part of the indices. So, there is a possibility of further gains from the fund.