Fincash » SBI Magnum Multicap Fund Vs Nippon India Multi Cap Fund
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SBI Magnum Multicap Fund and Nippon India Multi Cap Fund (Formerly known as Reliance Multi Cap Fund) both are a part of multi-cap funds. Multi-cap funds, also known as Diversified Funds or flexi cap are a type of Mutual Fund schemes that invest their corpus across Market capitalization. Ideally, these funds are picked by those investors who don't want to take risks by Investing in just one market cap. Multi cap funds balance out the risk and reduce the Volatility that usually comes with stock investments by investing across market capitalizations. Though SBI Magnum Multicap Fund and Reliance/Nippon India Multi Cap Fund belong to the same category, there are still a lot of differences in these schemes. So, for better fund selection, let us understand the differences between both the funds.
SBI Magnum Multicap Fund is offered by SBI Mutual Fund under the diversified category. This scheme was incepted on September 29, 2005, and it uses S&P BSE 500 Index to construct its Portfolio. The objective of this scheme is to attain long-term Capital appreciation along with liquidity by investing in a diversified basket of equity stocks across market capitalization. The scheme will follow a bottom-up approach to stock-picking and choose companies across sectors/styles. Large Cap Stocks – 1st -100th company in terms of full market capitalization, mid-cap - 101st to 250th company in terms of full market capitalization and small cap - 251st company onwards in terms of full market capitalization. The fund manager of SBI Magnum Multicap Fund is Mr. Anup Upadhyay. As on 31/05/2018, some of the top holdings of SBI Magnum Multicap Funds are HDFC Bank Limited, Infosys Ltd, ITC Ltd, ICICI Bank Limited, Kotak Mahindra Bank Ltd, etc.
Nippon India Multi Cap Fund (earlier known as Reliance Multi Cap Fund) was launched in the year 2005. The primary objective of the scheme is to generate long-term capital appreciation by investing in a portfolio constituted of equity & related securities. The fund also aims to generate consistent returns by investing a portion of the portfolio in debt and money market securities. As on Jun 30, 2018, some of the top holdings of the scheme are State Bank of India, The Indian Hotels Company Limited, Infosys Ltd, Axis Bank Ltd, HDFC Bank Ltd, etc. The current fund manager of Reliance/Nippon India Multi Cap Fund is Sailesh Raj Bhan.
Though these schemes belong to the same category, yet these schemes differ on various parameters. So, let us understand the parameters which are divided into four sections, namely, Basics Section, Performance Report, Yearly Performance Report, and Other Details Section.
This section compares the various elements such as Current NAV, Scheme Category, and Fincash Rating. To begin with the scheme category, it can be said that both the schemes SBI Magnum Multicap Fund and Reliance/Nippon India Multi Cap Fund belong to the same category Equity Multicap Fund. With respect to the next parameter, that is, Fincash Rating, it can be said that SBI Magnum Multicap Fund is rated as 4-Star and Nippon India Multi Cap Fund is rated as 2-Star. In case of Net Asset Value, SBI Magnum Multicap Fund's NAV as on 16th July 2018 is INR 46.1153, whereas the NAV of Reliance/Nippon India Multi Cap Fund is INR 86.6376. The table given below summarizes the details of basics section.
Parameters Basics NAV Net Assets (Cr) Launch Date Rating Category Sub Cat. Category Rank Risk Expense Ratio Sharpe Ratio Information Ratio Alpha Ratio Benchmark Exit Load SBI Magnum Multicap Fund
Growth
Fund Details ₹107.44 ↑ 0.13 (0.12 %) ₹23,489 on 30 Sep 24 29 Sep 05 ☆☆☆☆ Equity Multi Cap 9 Moderately High 1.72 2.21 0 0 Not Available 0-6 Months (1%),6-12 Months (0.5%),12 Months and above(NIL) Nippon India Multi Cap Fund
Growth
Fund Details ₹292.05 ↑ 0.85 (0.29 %) ₹39,622 on 30 Sep 24 28 Mar 05 ☆☆ Equity Multi Cap 63 Moderately High 1.68 3.21 1.38 8.77 Not Available 0-1 Years (1%),1 Years and above(NIL)
The performance section compares the Compounded Annual Growth Rate or CAGR returns between both the schemes at different time periods. With respect to performance, it can be said there is not much difference in the performance of both the schemes. However, in many instances, SBI Magnum Multicap Fund leads the race. The performance of both the schemes at different time periods is shown below as follows.
Parameters Performance 1 Month 3 Month 6 Month 1 Year 3 Year 5 Year Since launch SBI Magnum Multicap Fund
Growth
Fund Details -5.9% -3% 7.4% 28.8% 11.8% 16.2% 0% Nippon India Multi Cap Fund
Growth
Fund Details -4.6% -1.6% 10.9% 42.8% 26.3% 24.8% 18.8%
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This section deals with the absolute returns generated by both the funds in each year. In this case, we can see that there is a difference in the performance of both the schemes. In certain situations, Aditya Birla Sun Life Focused Equity Fund has performed better than SBI Magnum Multicap Fund. While in some situations, the other scheme has performed better. The yearly performance of both the funds is tabulated as follows.
Parameters Yearly Performance 2023 2022 2021 2020 2019 SBI Magnum Multicap Fund
Growth
Fund Details 22.8% 0.7% 30.8% 13.6% 11% Nippon India Multi Cap Fund
Growth
Fund Details 38.1% 14.1% 48.9% 0% 2.2%
This is the last section in the comparison of both the funds. In this section, the parameters such as AUM, Minimum SIP and Lumpsum Investment, and Exit Load are compared. To begin with the minimum SIP investment, it can be said the monthly SIP amounts of both the schemes are different. In case of SBI Magnum Multicap Fund it is INR 500 while in case of Nippon India Multi Cap Fund it is INR 100. Also, in case of minimum lump sum investment, the amount isn't same. The minimum lump sum for SBI Magnum Multi Cap Fund is INR 1,000, while for Reliance Multi Cap Fund it is INR 5,000. The AUM of both the schemes are also different. As on 31st May, 2018, the AUM of SBI Magnum Multicap Fund was INR 5,338 crores while of Reliance/Nippon India Multi Cap Fund was INR 9,687 crores. The table given below summarizes the other details for both the schemes.
Parameters Other Details Min SIP Investment Min Investment Fund Manager SBI Magnum Multicap Fund
Growth
Fund Details ₹500 ₹1,000 R. Srinivasan - 2.75 Yr. Nippon India Multi Cap Fund
Growth
Fund Details ₹100 ₹5,000 Sailesh Raj Bhan - 19.52 Yr.
SBI Magnum Multicap Fund
Growth
Fund Details Growth of 10,000 investment over the years.
Date Value 31 Oct 19 ₹10,000 31 Oct 20 ₹9,493 31 Oct 21 ₹15,177 31 Oct 22 ₹15,339 31 Oct 23 ₹16,457 31 Oct 24 ₹21,190 Nippon India Multi Cap Fund
Growth
Fund Details Growth of 10,000 investment over the years.
Date Value 31 Oct 19 ₹10,000 31 Oct 20 ₹8,272 31 Oct 21 ₹15,015 31 Oct 22 ₹17,341 31 Oct 23 ₹21,201 31 Oct 24 ₹30,265
SBI Magnum Multicap Fund
Growth
Fund Details Asset Allocation
Asset Class Value Cash 2.46% Equity 97.54% Equity Sector Allocation
Sector Value Financial Services 24.72% Consumer Cyclical 18.14% Industrials 12.47% Basic Materials 10% Energy 7.5% Technology 6.88% Communication Services 6.36% Consumer Defensive 5.27% Health Care 3.93% Utility 2.27% Top Securities Holdings / Portfolio
Name Holding Value Quantity HDFC Bank Ltd (Financial Services)
Equity, Since 31 Jul 15 | HDFCBANK6% ₹1,295 Cr 7,475,354
↑ 850,000 Kotak Mahindra Bank Ltd (Financial Services)
Equity, Since 28 Feb 23 | KOTAKBANK5% ₹1,241 Cr 6,694,000
↑ 610,000 Reliance Industries Ltd (Energy)
Equity, Since 30 Apr 20 | RELIANCE5% ₹1,154 Cr 3,908,270
↓ -235,000 ICICI Bank Ltd (Financial Services)
Equity, Since 30 Apr 17 | ICICIBANK3% ₹791 Cr 6,210,055
↑ 1,500,000 Infosys Ltd (Technology)
Equity, Since 31 Oct 20 | INFY3% ₹699 Cr 3,725,000
↓ -770,000 Mahindra & Mahindra Ltd (Consumer Cyclical)
Equity, Since 30 Jun 22 | M&M3% ₹672 Cr 2,170,000 Larsen & Toubro Ltd (Industrials)
Equity, Since 31 Mar 19 | LT3% ₹669 Cr 1,821,034 Bharti Airtel Ltd (Communication Services)
Equity, Since 30 Sep 16 | BHARTIARTL3% ₹641 Cr 3,750,000 Cognizant Technology Solutions Corp Class A (Technology)
Equity, Since 31 Jan 24 | CTSH2% ₹582 Cr 900,000 Nuvoco Vista Corp Ltd (Basic Materials)
Equity, Since 31 Aug 21 | 5433342% ₹457 Cr 12,710,062 Nippon India Multi Cap Fund
Growth
Fund Details Asset Allocation
Asset Class Value Cash 1.91% Equity 98.09% Equity Sector Allocation
Sector Value Financial Services 27.1% Industrials 18.88% Consumer Cyclical 18.27% Health Care 7.18% Technology 6.06% Basic Materials 5.62% Utility 5.23% Consumer Defensive 3.88% Communication Services 3.02% Energy 2.76% Real Estate 0.09% Top Securities Holdings / Portfolio
Name Holding Value Quantity HDFC Bank Ltd (Financial Services)
Equity, Since 31 Jul 10 | HDFCBANK6% ₹2,425 Cr 14,000,448
↑ 500,000 ICICI Bank Ltd (Financial Services)
Equity, Since 31 Oct 09 | ICICIBANK4% ₹1,428 Cr 11,217,355
↑ 1,017,040 Linde India Ltd (Basic Materials)
Equity, Since 31 May 13 | 5234573% ₹1,294 Cr 1,524,539 Infosys Ltd (Technology)
Equity, Since 30 Apr 09 | INFY3% ₹1,182 Cr 6,300,504 Axis Bank Ltd (Financial Services)
Equity, Since 31 Jan 15 | 5322153% ₹1,121 Cr 9,100,121
↑ 800,000 Reliance Industries Ltd (Energy)
Equity, Since 31 Oct 20 | RELIANCE3% ₹1,093 Cr 3,700,000 NTPC Ltd (Utilities)
Equity, Since 30 Jun 23 | 5325553% ₹1,019 Cr 23,000,000 GE T&D India Ltd (Industrials)
Equity, Since 31 May 12 | 5222752% ₹961 Cr 5,716,917
↓ -39,175 EIH Ltd (Consumer Cyclical)
Equity, Since 31 Jul 14 | 5008402% ₹953 Cr 25,187,817
↑ 371,510 Max Financial Services Ltd (Financial Services)
Equity, Since 31 Mar 12 | 5002712% ₹893 Cr 7,500,000
Therefore, from the above pointers, it can be said that both the schemes exhibit different attributes with respect to different parameters. However, when it comes to investing, it is always advisable that people should go through the scheme’s modalities completely before doing the actual investment. Additionally, they should also check whether the scheme’s approach is in-line with your investment objective. To get further clarification, you can even consult a financial advisor. This will help you ensure that your investment is safe as well as it paves way for wealth creation.