Fincash » SBI Magnum Multicap Fund Vs Kotak Equity Opportunities Fund
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SBI Magnum Multicap Fund and Kotak Equity Opportunities Fund have numerous differences between them though they belong to the same category of diversified Equity Fund. Diversified Funds are also known as Multicap or Flexicap funds. In simple terms, these schemes invest their corpus in stocks of all Market-caps that is- large-cap, mid-cap, and small cap stocks. Diversified funds are a good investment option for mid and long-term. Based on the Asset Allocation of the schemes, diversified funds invest around 10% of their corpus in small-cap stocks, 10-40% in mid-cap stocks, and around 40-60% in large-cap stocks. Sometimes, diversified funds may not invest in stocks of small-cap companies. So, let us understand the differences between SBI Magnum Multicap Fund and Kotak Equity Opportunities Fund through this article.
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 March 31, 2018, the top 10 holdings of SBI Magnum Multicap Fund’s portfolio consisted of HDFC Bank Limited, Infosys Limited, Kotak Mahindra Bank Limited, and Maruti Suzuki India Limited.
Kotak Equity Opportunities Fund (earlier known as Kotak Opportunities Scheme) is offered and managed by Kotak Mutual Fund. This scheme was launched on September 09, 2004. The investment objective of Kotak Equity Opportunities Fund is to invest the pooled money in a diversified portfolio predominantly consisting of equity and equity-related instruments thereby; attaining capital appreciation. Kotak Equity Opportunities Fund uses Nifty 500 as its benchmark to build its portfolio. Reliance Industries Limited, Larsen & Toubro Limited, ICICI Bank Limited, Coromandel International Limited, and Infosys Limited, are some of the Top 10 constituents of Kotak Equity Opportunities Fund’s portfolio as on March 31, 2018. Kotak Opportunities Scheme is solely managed by Mr. Harsha Upadhyaya. Kotak Opportunities Scheme invests around 65-100% of its accumulated fund money in equity and equity-related securities while the remaining in fixed Income and money market securities.
Both SBI Magnum Multicap Fund and Kotak Equity Opportunities 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 Diversified. The comparison of current NAV reveals that there is a significant difference between the NAV of both the schemes. As on April 30, 2018, the NAV of SBI Magnum Multicap Fund was approximately INR 48 while of Kotak Equity Opportunities Fund was around INR 116. Comparing Fincash Category, it can be said that SBI Magnum Multicap Fund is rated as a 4-Star scheme, while Kotak Equity Opportunities 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 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) Kotak Equity Opportunities Fund
Growth
Fund Details ₹218.995 ↓ -0.34 (-0.16 %) ₹12,514 on 30 Apr 23 9 Sep 04 ☆☆☆☆☆ Equity Large & Mid Cap 2 Moderately High 1.69 0.21 -0.68 2.27 Not Available 0-1 Years (1%),1 Years 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, SBI Magnum Multicap Fund leads the race.
Parameters Performance 1 Month 3 Month 6 Month 1 Year 3 Year 5 Year Since launch SBI Magnum Multicap Fund
Growth
Fund Details 3.5% 8.1% 1.8% 11.8% 24.6% 11.2% 0% Kotak Equity Opportunities Fund
Growth
Fund Details 3.8% 6.7% 2.7% 17.3% 26.5% 14.1% 17.9%
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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 in certain years, SBI Magnum Multicap Fund leads the race and in others, Kotak Equity Opportunities Fund leads the race. The summary comparison of the yearly performance section is tabulated as follows.
Parameters Yearly Performance 2022 2021 2020 2019 2018 SBI Magnum Multicap Fund
Growth
Fund Details 0.7% 30.8% 13.6% 11% -5.5% Kotak Equity Opportunities Fund
Growth
Fund Details 7% 30.4% 16.5% 13.2% -5.6%
AUM, minimum SIP investment, minimum lumpsum investment, and exit load are some of the details forming part of other details section. The minimum SIP and lumpsum investment are different for both the schemes. In case of SBI Magnum Multicap Fund, the minimum SIP and lumpsum amounts are INR 500 and INR 1,000 respectively. Similarly, for Kotak Opportunities Scheme, the minimum SIP and lumpsum amount are INR 1,000 and INR 5,000 respectively. Even the AUM of both the schemes is not same. The AUM of SBI Mutual Fund’s scheme was around INR 4,704 Crores while of Kotak Equity Opportunities Fund was nearly INR 2,356 Crores as of March 31, 2018. The summary comparison of other details section is as shown in the table given below.
Parameters Other Details Min SIP Investment Min Investment Fund Manager SBI Magnum Multicap Fund
Growth
Fund Details ₹500 ₹1,000 R. Srinivasan - 1.33 Yr. Kotak Equity Opportunities Fund
Growth
Fund Details ₹1,000 ₹5,000 Harsha Upadhyaya - 10.74 Yr.
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 Equity Opportunities Fund
Growth
Fund Details Growth of 10,000 investment over the years.
Date Value 31 May 18 ₹10,000 31 May 19 ₹10,806 31 May 20 ₹9,313 31 May 21 ₹15,127 31 May 22 ₹16,376 31 May 23 ₹19,234
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 Kotak Equity Opportunities Fund
Growth
Fund Details Asset Allocation
Asset Class Value Cash 2.04% Equity 97.96% Equity Sector Allocation
Sector Value Financial Services 21.88% Industrials 20.32% Basic Materials 16.65% Consumer Cyclical 14.22% Consumer Defensive 6.1% Health Care 4.5% Technology 4.08% Energy 3.76% Utility 2.54% Communication Services 1.61% Real Estate 1.13% Top Securities Holdings / Portfolio
Name Holding Value Quantity ICICI Bank Ltd (Financial Services)
Equity, Since 30 Sep 10 | ICICIBANK5% ₹638 Cr 6,950,000 State Bank of India (Financial Services)
Equity, Since 28 Feb 21 | SBIN5% ₹636 Cr 11,000,000 Axis Bank Ltd (Financial Services)
Equity, Since 31 Oct 12 | AXISBANK4% ₹533 Cr 6,200,000 ITC Ltd Shs Dematerialised (Consumer Defensive)
Equity, Since 31 Oct 21 | ITC4% ₹468 Cr 11,000,000 Larsen & Toubro Ltd (Industrials)
Equity, Since 30 Sep 13 | LT4% ₹449 Cr 1,900,000 Maruti Suzuki India Ltd (Consumer Cyclical)
Equity, Since 30 Jun 22 | MARUTI3% ₹421 Cr 490,000 Reliance Industries Ltd (Energy)
Equity, Since 31 Mar 16 | RELIANCE3% ₹387 Cr 1,600,000 SRF Ltd Shs Dematerialised (Basic Materials)
Equity, Since 30 Nov 16 | SRF3% ₹381 Cr 1,498,607 Bharat Forge Ltd (Consumer Cyclical)
Equity, Since 31 Dec 20 | BHARATFORG3% ₹353 Cr 4,400,000 Cummins India Ltd (Industrials)
Equity, Since 30 Nov 18 | CUMMINSIND3% ₹331 Cr 2,100,000
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.