SBI Magnum Multicap Fund Vs DSP BlackRock Equity Opportunities Fund

There are number of differences between SBI Magnum Multicap Fund and DSP BlackRock Equity Opportunities Fund. These differences exist in-spite of both the schemes belonging to the same category of diversified Equity Funds. Diversified Funds follow a Value investing strategy wherein; they invest in stocks of companies that are undervalued against their growth and cash flow potentials, historical values, and dividend yields. Diversified schemes invest their corpus money in shares of companies having different Market capitalization. So, let us understand the differences between SBI Magnum Multicap Fund and DSP BlackRock Equity Opportunities Fund by comparing various parameters such as performance, AUM, current NAV, and others that are explained in this article.

SBI Magnum Multicap Fund

SBI Mutual Fund manages and offers SBI Magnum Multicap Fund under the diversified category of equity funds. SBI Magnum Multicap Fund uses S&P BSE 500 Index as its benchmark for constructing its Portfolio. This open-ended diversified scheme was launched in the month of September 2005. SBI Magnum Multicap Fund included HDFC Bank Limited, Indian Oil Corporation Limited, ITC Limited, Kotak Mahindra Bank Limited, and Maruti Suzuki India Limited are some of the constituents that form part of the top 10 holdings of SBI Magnum Multicap Fund’s portfolio as on March 31, 2018. Mr. Anup Upadhyay is the sole fund manager managing the SBI Magnum Multicap Fund. This scheme is suitable for individuals looking for Capital growth and having a long-tenure of investment.

DSP BlackRock Equity Opportunities Fund (Erstwhile DSP BlackRock Opportunities Fund)

The investment objective of DSP BlackRock Equity Opportunities Fund (earlier DSP BlackRock Opportunities Fund) is to achieve capital growth in the long-term tenure. The scheme tries to attain its objective from a portfolio primarily consisting of large-cap and mid-cap stocks. Mr. Rohit Singhania and Mr. Jay Kothari jointly manage DSP BlackRock Equity Opportunities Fund. The scheme was incepted on May 16, 2000. HDFC Bank Limited, ICICI Bank Limited, State Bank of India, Tata Steel Limited, and HCL Technologies Limited, are the top five holdings of DSP BlackRock Equity Opportunities Fund’s portfolio as of March 31, 2018. DSP BlackRock Equity Opportunities Fund is offered and managed by DSP BlackRock Mutual Fund. As per the Asset Allocation objective of the scheme, it invests 35% of its pooled money in stocks of large-cap and mid-cap companies respectively. DSP BlackRock Equity Opportunities Fund uses Nifty 500 TRI Index as its benchmark to construct its portfolio.

SBI Magnum Multicap Fund Vs DSP BlackRock Equity Opportunities Fund

Though SBI Magnum Multicap Fund and DSP BlackRock Equity Opportunities Fund belong to the same category of diversified funds, yet; they are differences between them on account of numerous parameters. So, let’s understand the differences between these schemes by comparing these parameters that are divided into four sections, explained below as follows.

Basics Section

Basics section is the first section in the comparison of the schemes. Current NAV, Fincash Rating, and scheme category are some of the parameters that form part of this section. To begin with Fincash Rating it can be said that DSP BlackRock Equity Opportunities Fund is rated as 5-Star, as against SBI Magnum Multicap Fund which is rated as 4-Star. The comparison of scheme category, states that both the schemes are part of Equity Diversified category. The analysis of current NAV also shows a difference between the schemes. As on April 25, 2018, the NAV of DSP BlackRock Equity Opportunities Fund, is approximately INR 218 while of SBI Magnum Multicap Fund is around INR 47. The comparison summary of the basics section is tabulated as follows.

Performance Section

The comparison of Compounded Annual Growth Rate or CAGR returns at different time periods is done in the performance section. It is the second section in the comparison of the schemes. The comparison of performance section states that for certain time period SBI Magnum Multicap Fund has performed better while in others, DSP BlackRock Equity Opportunities Fund has done better. The comparison summary of the performance section is as shown in the table given below.

Yearly Performance Section

Being the third section in the comparison, it analyzes the changes in the absolute returns generated by both the schemes for a particular year. The comparison of yearly performance section also reveals that for certain years SBI Magnum Multicap Fund leads the race while in others DSP BlackRock Equity Opportunities Fund leads the race. The comparison summary of the performance section is tabulated as follows.

Other Details Section

It is the last section in the comparison whose elements are AUM, minimum SIP and lumpsum investment, and exit load. The comparison of AUM shows a difference between both the schemes. As on March 31, 2018, the AUM of SBI Mutual Fund’s scheme was around INR 5,069 Crores and of DSP BlackRock Mutual Fund’s scheme was nearly INR 4,704 Crores. The SIP and lumpsum amount for both the schemes are same. The minimum SIP amount for both the schemes is INR 500 while the lumpsum amount is INR 1,000. Also, the exit load for both the schemes is different. The table given below shows the comparison summary of the other details section.

Growth of 10k Investments over the years