Magnum Midcap Fund (G) Outperforms The Sensex Over All Time Periods

Background: SBI Funds Management Ltd manages SBI Mutual Fund a wholly owned subsidiary of India's premier and largest bank; the State Bank of India. SBI Mutual Fund set up in June 1987.SBI Mutual Fund house has Rs.26593.57 crore assets under management at the end of October 2007. The AMC has already launched a range of products to suit different risk and maturity profiles.

Magnum Midcap Fund (G) an open-ended balanced scheme launched in August 1995.The objective of the scheme is to provide growth through capital appreciation. It also plans to provide periodic income through declaration of dividends. The minimum investment amount is Rs.5000 and in multiples of Rs.1000 thereafter. The unit NAV of the scheme was Rs.33.43 as on 13 November 2007.

Portfolio: The total net assets of the scheme increased by Rs.11.82 crore to Rs.483.42 crore in October 2007.

Magnum Midcap Fund (G) took fresh exposure to one stock in October 2007. The scheme has purchased 5.00 lakh units (1.92%) of Radico Khaitan in October 2007.

The scheme completely exited from in Gujarat State Petronet by selling 7.21 lakh units (1.00%), Sagar Cements by selling 99,528 units (0.34%), Tanla Solutions by selling 22,606 units (0.29%) and Allied Digital Services by selling 29,886 units (0.24%) October 2007.

Sector-wise the scheme took fresh exposure to Breweries & Distilleries at 1.92% in October 2007.

Sector-wise the scheme has not exited completely from any sector in October 2007.

The scheme had highest exposure to Gujarat Mineral Development Corporation with 2.01 lakh units (10.65% of portfolio size) followed by Thermax with 3.15 lakh units (5.77%), Gitanjali Gems with 6.61 lakh units (5.39%) and Kesoram Industries with 4.48 lakh units (5.31%) among others in October 2007.

It reduced its exposure to Welspun Gujarat Stahl Rohren by selling 3.14 lakh units to 1.50 lakh units (by 1.90%), Nagarjuna Construction Company by selling 3.49 lakh units to 4.88 lakh units (1.33%) and Hotel Leela Venture by selling 8.80 lakh units to 10.00 lakh unit (1.03%)among others in October 2007.

Sector-wise, the scheme had highest exposure to Mining / Minerals / Metals at 10.65% (6.15% in September 2007), followed by Engineering at 10.08% (8.34%), Steel – Large at 9.96% (11.91%) and Construction at 6.25% (7.89%) among others in October 2007.

Sector wise, the scheme had reduced exposure Steel – Large to 9.96% (by 1.95%), Construction to 6.25% (by 1.64%), Hotels to 0.99% (1.03%) among others in October 2007.

Performance: The scheme outperformed the category average over all time periods. It has outperformed the Sensex over all time periods.

Over three-month period ended as on 13 November 2007, the scheme posted 28.92 % of returns outperforming the category average of 24.08%. It outperformed the Sensex that posted 26.76% during the same period.