Invest In Sbi Magnum Midcap: A Guide To Get Started

SBI Magnum Midcap Fund is a mutual fund scheme launched by SBI Mutual Fund. It is an open-ended mutual fund that primarily targets stocks listed in the Nifty mid-cap index. The fund aims to provide investors with opportunities for long-term growth in capital along with the liquidity of an open-ended scheme by investing predominantly in a well-diversified basket of equity stocks of mid-cap companies. The minimum SIP amount to invest in this fund is 500, and the minimum lumpsum amount is 5000. The fund has no lock-in period and has an expense ratio of 0.77%. The latest NAV of the fund is 271.42 as of 9 October 2024.

How to buy SBI Magnum Midcap Fund shares

To buy shares in the SBI Magnum Midcap Fund, you can either invest directly through the SBI Mutual Fund website or use an online platform such as MF Central or MF Utility. Alternatively, you can seek help from a mutual fund distributor, such as a bank.

The SBI Magnum Midcap Fund is a mutual fund scheme that aims to provide investors with long-term capital growth by investing predominantly in a diversified basket of equity stocks from mid-cap companies. It is important to note that this fund carries a "Very High" risk according to SEBI's Riskometer. The minimum SIP investment amount is ₹500, and the minimum lumpsum amount is ₹5,000. The fund does not have a lock-in period, and you can invest any time.

When investing in mutual funds, it is essential to consider factors such as historical performance, potential returns, expense ratio, and exit load, among others. Mutual funds are subject to market risk, and investors should carefully read all scheme-related documents before investing.

SBI Magnum Midcap Fund's investment objective

SBI Magnum Midcap Fund is a mutual fund scheme launched by SBI Mutual Fund. The fund aims to provide investors with opportunities for long-term growth in capital, coupled with the liquidity of an open-ended scheme. This means that investors can benefit from the potential for higher returns over time, while also being able to buy and sell fund units with ease.

To achieve this objective, the fund primarily invests in a well-diversified basket of equity stocks from mid-cap companies. Mid-cap stocks typically have a market capitalisation ranging from ₹5,000 to ₹20,000 crore, offering significant growth potential but also carrying a level of risk. The fund's managers carefully balance the potential returns with associated risks to ensure that investors can meet their investment goals.

The fund is ideal for investors who are willing to commit their capital for at least 3 to 4 years and are seeking high returns. It is important for investors to be aware of the potential for moderate risk and be prepared for it. This fund suits those with a moderately high-risk tolerance who are optimistic about the high-return potential of mid-cap companies.

SBI Magnum Midcap Fund's risk level

SBI Magnum Mid Cap Direct Plan Growth is a mutual fund scheme that was launched by SBI Mutual Fund in 1987. The fund is currently managed by Sohini Andani and has an Asset Under Management (AUM) of ₹10,37,900 Cr as of October 2024. The latest Net Asset Value (NAV) of the fund is ₹271.42.

When considering investing in the SBI Magnum Midcap Fund, it is important to understand the associated risk level. The fund has a "Very High risk" rating according to SEBI's Riskometer. This means that compared to larger companies, the fund invests in medium-sized companies, which tend to experience more significant drops when stock prices fall. As a result, while the fund offers the potential for higher returns over the long term, investors can also expect more severe fluctuations along the way.

It is recommended that investors only consider this fund if they are able to commit to a minimum investment horizon of seven years. This is because mid-cap funds, such as the SBI Magnum Midcap Fund, tend to be more volatile and may underperform in the short term. Therefore, a longer investment horizon allows for a better chance of achieving positive returns and riding out any short-term market downturns.

In terms of asset allocation, as of July 31, 2024, the fund had invested 94.88% in Equity, 4.65% in Cash & Cash Equivalents, and 0.47% in Debt. The expense ratio of the fund is 1.67, and there is an exit load of 1% if redeemed within one year of investment.

SBI Magnum Midcap Fund's expense ratio and exit load

The SBI Magnum Midcap Fund has an expense ratio of 1.67% as of 31 August 2024. This is the annual fee charged to investors for fund management. The expense ratio for the direct plan is lower at 0.77%.

The SBI Magnum Midcap Fund also has an exit load of 1% if redeemed within 1 year. If you redeem within one year, returns are taxed at 20%. If you redeem after one year, returns exceeding Rs 1.25 lakh in a financial year are taxed at 12.5%.

SBI Magnum Midcap Fund's historical returns

SBI Magnum Midcap Fund is a mutual fund scheme that was launched on 29 June 1987. It is a very high-risk fund that predominantly invests in a well-diversified basket of equity stocks of mid-cap companies. The fund aims to provide investors with long-term growth in capital and the liquidity of an open-ended scheme.

As of 31 July 2024, the fund had an Asset Under Management (AUM) of ₹21,127 crore, with a Net Asset Value (NAV) of ₹235.9899 as of 17 August 2024. The expense ratio of the fund is 1.67.

The SBI Magnum Midcap Fund has delivered returns of 17.70% since its inception. For the last 3 years, the fund has generated annualised returns of 11.66% lower than the category average. However, for the 5-year and 10-year periods, the fund has outperformed the category average, with annualised returns of 14.05% and 14.23%, respectively.

It is important to note that past performance is not a guarantee of future results, and mutual fund investments are subject to market risks. Investors should carefully consider their investment objectives, risk tolerance, and expenses before investing.

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