Introduction to SBI Mutual Fund:

InvestmentYogi: Provides you a detailed review of best SBI mutual funds for investments.

                                                                    
SBI mutual fund was setup on June 29th, 1987 and incorporated on February 7th, 1992. It is a result of joint venture between State Bank of India and Societe Generale Asset Management of France. This is a bank sponsored mutual fund and has a base of 3.5 million investors (approx). Over the years it has carved a niche for itself through prudent investment decisions and consistent wealth creation for its customers. They offer Mutual Fund products in Equity Funds, Index Funds, Balanced Funds, Debt Funds, etc.
                                                  

The assets under management are Rs 33,727.90 crores as of June, 30, 2010.

                                                             
InvestmentYogi analyses the best performing SBI mutual funds in the Balanced Fund, Equity Fund and Equity Linked Savings Scheme (ELSS) categories.

Best performing “Balanced Fund/Hybrid Fund” is:                                                          

SBI Magnum Balanced fund: The objective of the scheme is to provide its investors growth through capital appreciation and provide periodic income through declaration of dividends. This scheme was launched on October, 9th 1995. The top sector allocations are BFSI, Energy, Engineering. This fund has given 18.24% returns from its inception date. The fund managers are Mr. Dharmendra Grover and Mr. Sankar V. B. Chebiyyam.     

Source: Value Research Online   -   Data as of June 30, 2010

The annualized returns for this fund seem to be volatile. Returns had drop to 9.16% for the last three years due to the recession but it’s commendable.  When the markets recovered in the last one year the fund delivered 20.08% returns. This seems attractive for investments in balanced fund category.

Best performing “Equity Funds” are:

                                                                      
SBI Magnum Global Fund 94: The objective of the scheme is to provide growth opportunities through investment in equities. This scheme was launched on September, 30th 1994. The benchmark index is BSE 100. The top sector allocations are Engineering, Information Technology and Automobiles. This fund has given 14.50% returns from its inception date. The fund manager is Mr. R. Srinivasan.

SBI Magnum Contra Fund: The objective of the scheme is to invest in under value stocks which are currently out of favor but have potential to grow in the long term. This scheme was launched on July, 5th 1999. The benchmark index is BSE 100. The top sector allocations are BFSI, Energy. This fund has given 14.48% returns from its inception date. The fund manager is Mr. Pankaj Gupta.

Source: Value Research Online   -   Data as of June 30, 2010   

The annualized return for SBI Magnum Global Fund 94 is volatile. During the recession (in last 3 years) returns of this fund dropped drastically to 5.21%. Now, when the markets have been recovering the fund has managed to recover quickly and it’s giving 40.96% returns.

                                                                        
On the other hand, the SBI Mangum Contra Fund had delivered 9.78% during recession which is 4.57% higher returns while comparing with SBI Magnum Global Fund 94. But, when the markets were recovering there was only nominal increase in returns of SBI Mangum Contra Fund by comparing to other fund. 

                                                             
In the long term, the annualized 5 year return is 2.61% higher for SBI Magnum Contra fund while comparing with SBI Magnum Global Fund 94.

Best performing “Tax Saving Schemes” are:

                                                                                                  
SBI MAGNUM TAXGAIN SCHEME: The objective of the scheme is to invest in a portfolio of equities and offering tax benefits to investors. This scheme was launched on March, 31st 1993. The benchmark index is BSE 100. The top sector allocations are Engineering, BFSI, Oil and Gas. This fund has given 19.40% returns from its inception date. This is an open ended scheme. The fund manager is Mr. Jayesh Shroff.  

SBI Tax Advantage Fund - Series 1: The objective of the scheme is to generate capital appreciation in the long term by investing in large cap, mid cap and small cap companies. Also, offering income tax benefit to its investors. This scheme was launched on March, 3rd 2008. The benchmark index is BSE 100. The top sector allocations are Engineering, BFSI, Information Technology. This fund has given 8.95% returns from its inception date. This is a close ended scheme. The fund manager is Mr. Dharmendra Grover.

Source: Value Research Online   -   Data as of June 30, 2010

The SBI Tax Advantage Fund - Series 1 mutual fund scheme was launched in Mar, 2008 when the markets were recovering from recession. In the last one year the returns for this fund had been 3% higher while comparing with SBI Magnum Taxgain scheme.

                                                                                             
There are various schemes under SBI Mutual Funds to invest other than schemes discussed above. Use InvestmentYogi’ financial planner to analyze your needs and goals. Then take a vital decision of investments into specific mutual fund schemes considering your risk taking ability.

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Written for InvestmentYogi by Hiral Thanawala, CFPCM

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