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 ₹81.4964 ↑ 0.66 (0.82 %) ₹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) Nippon India Multi Cap Fund
Growth
Fund Details ₹183.538 ↑ 1.31 (0.72 %) ₹15,088 on 30 Apr 23 28 Mar 05 ☆☆ Equity Multi Cap 63 Moderately High 1.91 0.49 0.53 8.23 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 5.2% 8.6% 4.5% 14.8% 24.1% 11.6% 0% Nippon India Multi Cap Fund
Growth
Fund Details 6.9% 10.9% 7.9% 29.2% 36.1% 15.3% 17.3%
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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 2022 2021 2020 2019 2018 SBI Magnum Multicap Fund
Growth
Fund Details 0.7% 30.8% 13.6% 11% -5.5% Nippon India Multi Cap Fund
Growth
Fund Details 14.1% 48.9% 0% 2.2% -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 - 1.33 Yr. Nippon India Multi Cap Fund
Growth
Fund Details ₹100 ₹5,000 Sailesh Raj Bhan - 18.1 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 Nippon India Multi Cap Fund
Growth
Fund Details Growth of 10,000 investment over the years.
Date Value 31 May 18 ₹10,000 31 May 19 ₹11,178 31 May 20 ₹7,302 31 May 21 ₹13,254 31 May 22 ₹15,746 31 May 23 ₹19,701
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 Nippon India Multi Cap Fund
Growth
Fund Details Asset Allocation
Asset Class Value Cash 1.3% Equity 98.7% Equity Sector Allocation
Sector Value Financial Services 29.14% Industrials 20.38% Consumer Cyclical 19.18% Health Care 7.72% Basic Materials 6.35% Technology 5.9% Energy 3.53% Consumer Defensive 2.99% Communication Services 2.7% Utility 0.59% Top Securities Holdings / Portfolio
Name Holding Value Quantity Linde India Ltd (Basic Materials)
Equity, Since 31 May 13 | LINDEINDIA5% ₹707 Cr 1,774,811 ICICI Bank Ltd (Financial Services)
Equity, Since 31 Oct 09 | ICICIBANK4% ₹642 Cr 7,000,000 HDFC Bank Ltd (Financial Services)
Equity, Since 31 Jul 10 | HDFCBANK4% ₹608 Cr 3,600,448 Reliance Industries Ltd (Energy)
Equity, Since 31 Oct 20 | RELIANCE4% ₹533 Cr 2,200,000
↑ 500,000 Axis Bank Ltd (Financial Services)
Equity, Since 31 Jan 15 | 5322153% ₹516 Cr 6,000,121 Indian Hotels Co Ltd (Consumer Cyclical)
Equity, Since 31 May 14 | INDHOTEL3% ₹509 Cr 15,000,000 Larsen & Toubro Ltd (Industrials)
Equity, Since 31 Mar 10 | LT3% ₹473 Cr 2,000,000 EIH Ltd Shs Dematerialised (Consumer Cyclical)
Equity, Since 31 Jul 14 | EIHOTEL3% ₹469 Cr 24,869,918 State Bank of India (Financial Services)
Equity, Since 31 Mar 05 | SBIN3% ₹463 Cr 8,000,000
↑ 2,000,000 Kennametal India Ltd (Industrials)
Equity, Since 31 Mar 13 | KENNAMET3% ₹462 Cr 2,026,242
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.