SBI Magnum Balanced Fund

Review of SBI Magnum Balanced Fund

Review of SBI Magnum Balanced Fund




Post Brexit, the market has started to build in a lesser probability of a potential US Fed rate hike and also more easing from other economies. On the domestic front, steady progress of monsoon and renewed optimism over domestic consumption following the Union Cabinet’s acceptance of the recommendations of the Seventh Pay Commission, which will hike pay and pension of government employees, were the major boosters. Sentiments were boosted after the Cabinet approved changes to the Constitution Amendment Bill on the Good and Services

Tax (GST), which led to hopes that the GST will be implemented in Winter Session of Parliament and we would see GST wef 01.04.2017!!

The mutual fund industry continues to see active participation from retail investors even though some might feel the valuations currently have peaked. Regular Balancing is one of the basic principles of Investing. That’s why choosing a Balance Fund will provide automatic profit booking & balancing.

A Balanced Fund aims to balance the risk and return of the portfolio as it provides the investor with an option to invest in a single mutual fund scheme which has an optimal blend of equity and debt. Each asset class serves its own purpose in the portfolio:









1.    REVIEW

SBI Magnum Balanced Fund invest in a mix of Equity & Debt to strive for balance between Growth & Stability. The fund invests in a diligent mix of equity and debt which endeavours to give you the best of both worlds and provides growth opportunities to build wealth in the long term. Investors targeting long-term capital appreciation along with the liquidity can take exposure to this as this scheme is well invested in a diversified portfolio of equities of high-growth companies and balance the risk through investing the rest in a relatively safe portfolio of debt.

This fund has around 70% Equity exposure in Jun’16 & remaining in Debt, Securitised Debt and Money Market Instruments. Equity portion of the portfolio is managed Dynamically, based on a Bottom-Up approach, and consists of a mix of Large-cap (58%), Mid-cap(25%) and Small-cap (17%) companies. Debt portion of the portfolio consists of a mix of government debt, corporate debt and money market instruments, based on interest view, inflation and credit risk. This fund is well diversified with 34% exposure to Top 5 Sectors & maximum to Banking Sector.

The fund performance has improved in previous years as its ability to pick winners in equity space boosted the schemes NAV. Investors has also shown faith on this fund and same was reflected in growth in AUM of this fund which is as follows:




This fund provides a good investment opportunity to investors who do not wish to be completely exposed to equity markets, but are looking for relatively higher returns than those provided by debt funds.


Details of funds is here under:





AMC: SBI FUNDS Management Limited


Registrar: Computer Age Management Services Ltd. (CAMS)


Fund Category: Hybrid-Equity Oriented

Launch: December’31-1995

Benchmark: Crisil Balanced Fund Aggressive

Assets: ₹ 6,205 crores (As on sept. 09, 2016)

Plan: Regular & Open Ended

NAV: ₹105.91 (G) & ₹28.31 (D) (as on 20. 09.2016)


Fund Managers:

Dinesh Ahuja (since JAN’11) – Equity

Srinivasan (since Jan’12) – Debt



Name Qualification Business Experience Scheme Managed
Mr. Rama Iyer


Age-45 years

M.Com & MFM Over 24 years SBI Magnum Equity

Fund, SBI Magnum Global Fund, SBI Magnum Balanced Fund

(jointly with Dinesh Ahuja), SBI Emerging Businesses Fund, SBI

Contra Fund & SBI Small & Midcap Fund.

Mr. Dinesh Ahuja

Age-40 years

B B. Com, M.M.S. Over 18 years


SBI Magnum Income Fund,

SBI Regular Savings Fund

SBI Dynamic Bond Fund, SBI Magnum Balanced Fund with Mr. R. Srinivasan, SBI Regular Savings Fund and SBI Corporate Bond Fund




To provide investors long-term capital appreciation along with the liquidity of an open-ended scheme by investing in a mix of debt and equity. The scheme will invest in a diversified portfolio of equities of high-growth companies and balance the risk through investing the rest in a relatively safe portfolio of debt.



  • 43% in equity and equity-related securities
  • 32% in debt and money market instruments (including investments in securitized debt)





Minimum Investments:  ₹ 5,000 Minimum Additional Investments: ₹ 1,000
Minimum SIP amount: ₹ 500 Minimum No. of SIP: 6 (monthly) or 4(Quarterly)
SIP Top up available. Dates available for SIP: 1st, 5th, 10th, 15th, 20th, 25th, 30th (for February, last business day).
Exit Load: For redemption within 1 year: 1% of applicable NAV For redemption beyond 1 year: NIL






A. Assets Allocations







b)    Equity Holding Breakup


No. of Stocks: 49 Top 10 Holdings: 34.63%
Portfolio P/B Ratio: 3.11 Portfolio P/e Ratio: 22.81






c)    Sectorwise Break-up



This fund has around 34% exposure to Top-5 sectors with maximum exposure to Banking




a)    Absolute Returns


Period SBI magnum balance fund Benchmark S&P BSE Sensex
30.06.15-30.06.16 5.61 3.12 -2.81
30.06.14-30.06.15 23.53 10.58 9.31
30.06.13-30.06.14 37.25 21.01 31.03


b)    Compounded Annualized Growth Rate (CAGR) Since Inception


Period SBI magnum balance fund Benchmark S&P BSE Sensex
CAGR Returns (%) 16.30% NA 10.23
Point to Point (PTP) Returns in INR show the value of ₹ 10,000 invested 2,29,289 NA 75,357



c)    SIP Performance

A Systematic Investment Plan (SIP), is the most popular & effective method of investing money in mutual funds. By this method one invests a fixed amount of money, automatically at periodic intervals.

The amount of investment can start with as low as Rs 500 and one can choose different periods varying from –Weekly, monthly or Quarterly as available in this scheme.

Most popular intervals chosen by 95% of the investors is monthly investing. This is an easy way to Maximize Wealth with small regular contributions, on a long term, which is incidentally our goal. Our Goal Us Maximization of your Wealth.



SBI magnum balance Fund 1 Year 3 Year 5 Year 10 Year Since Inception
Total amount invested (₹) 1,20,000 3,60,000 6,00,000 12,00,000 18,00,000
Current Value (₹) 1,26,293 4,59,943 9,44,065 24,59,741 80,03,905
Scheme Returns (%) 9.73 16.60 18.20 13.75 17.99
Benchmark Returns (%) 9.37 9.06 10.17 9.19 11.35
Additional Benchmark Returns (%) 6.97 6.62 9.44 8.53 13.58





This article is for information purpose. This has not to be considered as investment advisory. Please contact your financial investment adviser before investment. MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISK. PLEASE READ THE SCHEME RELATED OFFER DOCUMENT BEFORE INVESTING.




Name: WealthMaxi Financial Consultancy Private Limited
Address: Plot No. H-52, Block-H, Main Market, Shakarpur, New Delhi – 110092

Mobile: 9810638155

Telephone: 011-64621378, 011-43027847

Email id:



Note: You can read our Review of L&T India Prudence Fund.

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Review of SBI Magnum Balanced Fund