Thursday, June 18, 2009

SBI Mutual Fund Under Performs The All Over Periods- June 18, 2009

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 34441.20 crore assets under management at the end of May 2009. The AMC has already launched a range of products to suit different risk and maturity profiles.

Magnum Multicap Fund (G) an open ended growth fund launched in August 2005. The investment objective seeks to provide investors with opportunities for long-term growth in capital along with the liquidity of an open-ended scheme through an active management of investments in a diversified basket of equity stocks spanning the entire market capitalization spectrum, debt and money market instruments.

The minimum investment amount is Rs.5000 and in multiples of Rs.1000 thereafter. The unit NAV of the scheme was Rs 14.15 as on 17 June 2009.

Portfolio: The total net assets of the scheme increased by Rs 134.35 crore to Rs 636.73 crore in May 2009.

Magnum Multicap Fund (G) took fresh exposure to eleven new stocks in May 2009. The scheme has purchased 2.54 lakh units (1.54%) of Simplex Infrastructures. 1.77 lakh units (0.94%) of Tata Motors, 3.97 lakh units (0.61%) of Suzlon Energy and 40088 units (0.57%) of Aban Offshore among others.

The scheme exited completely from Axis Bank by selling 1.00 lakh units (1.11%) and Bank of India by selling 2.02 lakh units (0.95%) in May 2009.

Sector -wise, the scheme took fresh exposure in Automobiles-LCVs/HCVs at 0.94% and Shipping at 0.45% in May 2009. Sector-wise, the scheme did not exit completely from any sectors in May 2009.

The scheme had highest exposure to Reliance Industries with 1.75 lakh units (6.26% of portfolio size) followed by ICICI Bank with 3.34 lakh units (3.89%), Larsen & Toubro with 1.69 lakh units (3.75%) and State Bank of India with 1.25 lakh units (3.67%) among others in May 2009.

It reduced its exposure from ITC by selling 1.23 lakh units to 9.25 lakh units (by 1.28%), Grasim Industries to by selling 30123 units to 35979 units (1.15%), Lupin by selling 49703 units to 1.61 lakh units (0.90%) and Infosys Technologies by selling 10133 units to 1.16 lakh units (0.87%) among others in May 2009.

Sector-wise, the scheme had highest exposure to Banks-Private Sector at 7.05% (from 6.24% in April 2009), followed by Refineries at 6.89% (6.46%), Electric Equipment at 6.42% (5.76%) and Telecommunications-Service Provider at 6.06% (5.33%) among others in May 2009.

Sector wise, the scheme had reduced exposure from Cigarettes to 2.67% (by 1.28%), Diversified-Mega to 1.19% (by 1.15%), Computers-Software–Large to 4.83% (by 1.12%) and Pharmaceuticals-Indian-Bulk Drugs to 2.12% (by 0.90%) among others in May 2009.

Performance: The performance of scheme is benchmarked against BSE 100. The scheme has underperformed the benchmark index over all time periods.

The scheme has posted returns of 21.56% underperforming the BSE 100 that gained 22.06% over 1 month period ended 17 June 2009. Over 3 months period, the scheme advanced by 58.99% underperforming the benchmark index that gained 68.52%. It fell 12.55% more than the benchmark index that declined by 8.57% over 1 year period.

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