Fincash » Kotak Standard Multicap Fund Vs SBI Magnum Multicap Fund
Table of Contents
Kotak Standard Multicap Fund and SBI Magnum Multicap Fund belong to the same category of multicap equity fund. In simple terms, these schemes invest their corpus in stocks of all Market-caps that is- large-cap, mid-cap, and small cap stocks. Multi-cap are a good investment option for mid and long term. Based on the Asset Allocation of the schemes, multi-cap funds invest around 10% of their corpus in small-cap stocks, 10-40% in mid-cap stocks, and the major portion i.e., around 40-60% in large-cap stocks. Sometimes, these funds may not invest in stocks of small-cap companies. So, let us understand the differences between Kotak Standard Multicap Fund and SBI Magnum Multicap Fund through this article.
Kotak Standard Multicap Fund (earlier known as Kotak Select Focus Fund) is offered by Kotak Mutual Fund under large cap category of Equity Funds. The scheme is an open-ended scheme and was launched on September 11, 2009. The investment objective of the scheme is to attain Capital growth in the long-term from a Portfolio of equity and related instruments by focusing on a few selected sectors. Kotak Standard Multicap Fund uses Nifty 200 Index as its benchmark to construct its portfolio. As on 31/05/2018, some of the top constituents of Kotak Standard Multicap Fund’s portfolio include HDFC Bank Limited, Larsen and Toubro Limited, Reliance Industries Limited, and Maruti Suzuki India Limited. Kotak Standard Multicap Fund is managed by Harsha Upadhyaya. The scheme works hard in trying to identify the sectors which are expected to do well in the medium term and takes exposure in these same sectors.
SBI Magnum Multicap Fund is suitable for individuals seeking for long-term capital appreciation along with long-term investment horizon. The aim of SBI Magnum Multicap Fund is to achieve for capital growth in the long term by Investing the fund money in shares of companies across market capitalization spectrum. The scheme uses S&P BSE 500 Index as its benchmark to construct its portfolio. Based on the asset allocation objective of SBI Magnum Multicap Fund, it invests around 50-90% of its pooled money in shares of large-cap companies, 10-40% in mid-cap companies, and 0-10% in small-cap companies. SBI Magnum Multicap Fund is managed by Mr. Anup Upadhyay. As on 31/05/2018, some of the top holdings of SBI Magnum Multicap Fund’s portfolio consisted of HDFC Bank Limited, Infosys Limited, Kotak Mahindra Bank Limited, ITC Ltd, Maruti Suzuki India Ltd, etc.
Both SBI Magnum Multicap Fund and Kotak Standard Multicap Fund belong to the same category nevertheless; they differ on numerous parameters. So, let us analyze the differences between these schemes that are classified into four sections, listed below as follows.
Being the first section in the comparison, it includes parameters such as current NAV, scheme category, and Fincash Rating. With respect to the scheme category, it can be said that both the schemes are a part of equity multi-cap. The comparison of current NAV reveals that there is a significant difference between the NAV of both the schemes. As on 17th July, 2018, the NAV of SBI Magnum Multicap Fund was approximately INR 46.4782 while of Kotak Standard Multicap Fund was around INR 33.516. Comparing Fincash Category, it can be said that SBI Magnum Multicap Fund is rated as a 4-Star scheme, while Kotak Standard Multicap Fund is rated as a 5-Star Scheme. The summary of the basics section is as follows.
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 Kotak Standard Multicap Fund
Growth
Fund Details ₹56.515 ↓ -0.14 (-0.25 %) ₹37,217 on 30 Apr 23 11 Sep 09 ☆☆☆☆☆ Equity Multi Cap 3 Moderately High 1.34 0.12 -1 2.44 Not Available 0-1 Years (1%),1 Years and above(NIL) SBI Magnum Multicap Fund
Growth
Fund Details ₹80.0586 ↓ -0.29 (-0.36 %) ₹16,458 on 30 Apr 23 29 Sep 05 ☆☆☆☆ Equity Multi Cap 9 Moderately High 1.83 -0.07 -0.68 -0.61 Not Available 0-6 Months (1%),6-12 Months (0.5%),12 Months and above(NIL)
It is the second section in the comparison of the schemes. The comparable element forming part of the performance section is Compounded Annual Growth Rate or CAGR returns. The CAGR returns are compared at different time intervals such as 1 Month Return, 1 Year Return, 5 Year Return, and Return since Inception. The comparison of performance section reveals that in most instances, Kotak Standard Multicap Fund leads the race.
Parameters Performance 1 Month 3 Month 6 Month 1 Year 3 Year 5 Year Since launch Kotak Standard Multicap Fund
Growth
Fund Details 3.1% 6.3% 0.2% 14.2% 22.8% 11.5% 13.5% SBI Magnum Multicap Fund
Growth
Fund Details 3.5% 8.1% 1.8% 11.8% 24.6% 11.2% 0%
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Being the third section, it compares the absolute returns generated by both schemes for a particular year. This analysis or yearly performance section states that the performance of the both the funds are close enough. The summary comparison of the yearly performance section is tabulated as follows.
Parameters Yearly Performance 2022 2021 2020 2019 2018 Kotak Standard Multicap Fund
Growth
Fund Details 5% 25.4% 11.8% 12.3% -0.9% SBI Magnum Multicap Fund
Growth
Fund Details 0.7% 30.8% 13.6% 11% -5.5%
The elements that form part of other details section include AUM, Minimum SIP investment, Minimum Lumpsum Investment, Exit Load, and others. To begin with the minimum lumpsum investment, the amount for both the scheme differs. The minum lumpsum amount of Kotak Standard Multicap Fund is INR 5,000 and SBI Magnum Multicap Fund is INR 1,000. The next parameter is minimum SIP investment, which is same for both the schemes, i.e., INR 500. Comparison of AUM for both the schemes reveals that the AUM of Kotak is higher than that of SBI. As on May 31, 2018, the AUM of Kotak Standard Multicap Fund was approximately INR 19,614 crores, while of SBI Magnum Multicap Fund was approximately INR 5,338 crores. The comparison summary of other details section is as shown in the table given below.
Parameters Other Details Min SIP Investment Min Investment Fund Manager Kotak Standard Multicap Fund
Growth
Fund Details ₹500 ₹5,000 Harsha Upadhyaya - 10.74 Yr. SBI Magnum Multicap Fund
Growth
Fund Details ₹500 ₹1,000 R. Srinivasan - 1.33 Yr.
Kotak Standard Multicap Fund
Growth
Fund Details Growth of 10,000 investment over the years.
Date Value 31 May 18 ₹10,000 31 May 19 ₹11,138 31 May 20 ₹9,075 31 May 21 ₹14,385 31 May 22 ₹15,019 31 May 23 ₹17,142 SBI Magnum Multicap Fund
Growth
Fund Details Growth of 10,000 investment over the years.
Date Value 31 May 18 ₹10,000 31 May 19 ₹10,675 31 May 20 ₹8,549 31 May 21 ₹14,214 31 May 22 ₹15,118 31 May 23 ₹16,939
Kotak Standard Multicap Fund
Growth
Fund Details Asset Allocation
Asset Class Value Cash 0.75% Equity 99.25% Equity Sector Allocation
Sector Value Financial Services 30.42% Basic Materials 18.88% Industrials 16.2% Consumer Cyclical 9.92% Technology 7.37% Energy 6.08% Consumer Defensive 4.27% Health Care 2.66% Communication Services 2.1% Utility 1.13% Top Securities Holdings / Portfolio
Name Holding Value Quantity ICICI Bank Ltd (Financial Services)
Equity, Since 30 Sep 10 | ICICIBANK10% ₹3,634 Cr 39,600,000 Larsen & Toubro Ltd (Industrials)
Equity, Since 30 Sep 13 | LT6% ₹2,081 Cr 8,800,000 SRF Ltd Shs Dematerialised (Basic Materials)
Equity, Since 31 Dec 18 | SRF5% ₹1,969 Cr 7,750,000
↓ -50,000 HDFC Bank Ltd (Financial Services)
Equity, Since 31 Dec 10 | HDFCBANK5% ₹1,941 Cr 11,500,000 State Bank of India (Financial Services)
Equity, Since 31 Jan 12 | SBIN5% ₹1,908 Cr 33,000,000 UltraTech Cement Ltd (Basic Materials)
Equity, Since 31 Mar 14 | ULTRACEMCO5% ₹1,795 Cr 2,375,000
↓ -25,000 Infosys Ltd (Technology)
Equity, Since 30 Nov 10 | INFY5% ₹1,754 Cr 14,000,000 Axis Bank Ltd (Financial Services)
Equity, Since 31 May 12 | AXISBANK5% ₹1,703 Cr 19,800,000 Reliance Industries Ltd (Energy)
Equity, Since 31 Jan 16 | RELIANCE4% ₹1,646 Cr 6,800,000
↓ -350,000 Bharat Electronics Ltd (Industrials)
Equity, Since 31 Aug 14 | 5000494% ₹1,374 Cr 133,000,000 SBI Magnum Multicap Fund
Growth
Fund Details Asset Allocation
Asset Class Value Cash 4.36% Equity 95.64% Equity Sector Allocation
Sector Value Financial Services 32.14% Consumer Cyclical 12.98% Industrials 10.45% Basic Materials 6.95% Consumer Defensive 6.87% Technology 6.46% Communication Services 5.97% Health Care 5.28% Energy 5.2% Utility 3.34% Top Securities Holdings / Portfolio
Name Holding Value Quantity ICICI Bank Ltd (Financial Services)
Equity, Since 30 Apr 17 | ICICIBANK9% ₹1,465 Cr 15,965,055
↑ 550,000 HDFC Bank Ltd (Financial Services)
Equity, Since 31 Jul 15 | HDFCBANK6% ₹1,029 Cr 6,095,354 ITC Ltd Shs Dematerialised (Consumer Defensive)
Equity, Since 31 Jul 14 | ITC6% ₹951 Cr 22,340,000
↓ -1,000,000 Kotak Mahindra Bank Ltd (Financial Services)
Equity, Since 28 Feb 23 | KOTAKBANK5% ₹836 Cr 4,314,000
↑ 622,000 Infosys Ltd (Technology)
Equity, Since 31 Oct 20 | INFY4% ₹646 Cr 5,160,000 State Bank of India (Financial Services)
Equity, Since 31 Dec 20 | SBIN4% ₹581 Cr 10,038,901
↑ 1,500,000 Bank of Baroda (Financial Services)
Equity, Since 31 Dec 22 | BANKBARODA3% ₹440 Cr 23,455,000 Alphabet Inc Class A (Communication Services)
Equity, Since 31 Jul 21 | GOOGL3% ₹440 Cr 500,000 Reliance Industries Ltd (Energy)
Equity, Since 30 Apr 20 | RELIANCE3% ₹433 Cr 1,788,270 Bajaj Finance Ltd (Financial Services)
Equity, Since 31 Oct 22 | BAJFINANCE3% ₹421 Cr 669,700
↑ 232,000
As a result, from the above-mentioned sections, it can be said that both the schemes differ on account of numerous parameters. Resultantly, individuals should pay extra caution while choosing any of the schemes for investment. They should check whether the scheme matches their investment objectives or not. They should also understand the various parameters of the scheme completely. This will help individuals to attain their objectives on time along with ensuring the safety of their investment.