SBI Magnum COMMA Fund

SBI Magnum COMMA Fund is being managed by Ajit Dange. He has 13 years experience in this domain and took over in Feb 2011. It is a poor performer. Commodities, in general (barring gold), have not had a lustrous performance in the past few years. If you have invested in this fund, exit now and look instead at the sector/theme that is ‘in’ at the moment. Investing in sectoral funds is risky and these should only be made part of a satellite portfolio.

Where does SBI Magnum COMMA Fund invest your money?

SBI Magnum COMMA Fund is a commodities fund which invests your money in companies focusing on commodities business. It seeks to invest in companies in Oil & Gas, Metals, Materials and Agriculture sectors. With growth in population consumption of commodities and therefore, value of these companies are expected to rise. The portfolio has 49% exposure to large cap companies, 34% exposure to mid cap companies and 17% exposure to small cap companies. Small and mid size companies have the potential to become large companies and when that happens you are expected to get bumper returns.

Suitable for what?
  • Creation of wealth
  • Lifestyle Needs
Not Suitable for?
  • Child's Eduation
  • Child's Marriage
  • Planning for Retirement
  • Buying a house 
Our recommendation for fresh investment
Not Recommended
Our recommendation for existing investment
Not Recommended
How has SBI Magnum COMMA Fund performed in the past?

If you had invested Rs 1 lakh when the fund was launched in August 2004 the value of your investments would be around Rs 1.78 lakhs. If you had invested Rs 1 lakh five years back it would have become Rs 0.83 lakhs. The performance has been not at all good compared to other mutual funds in this category. The fund has been giving at around -3.5% every year for those who stayed invested for last 5 years.

Assume you had invested Rs 10,000 every month in SBI Magnum COMMA Fund through SIP for the past 5 years today you would have just around Rs 5.85 lakhs.

What charges apply?

A onetime fee of Rs 100 is charged on investments over Rs 10, 000 made through distributors. If you are a first time investor in mutual funds an additional Rs 50 is charged to cover KYC expenses. This is deducted from your investment and can be skipped if you buy directly from the mutual fund via their website or offices.

If units are sold within a year an exit load of 1% is deducted from your total returns. No exit load applies for units withdrawn post one year. Expense ratio of SBI Magnum COMMA Fund is 2.31%. This is charged to recover the fund management company’s expenses on securities’ transactions, commissions, registrar fees, etc. Your mutual fund returns will be total returns less expense ratio. 

What are the tax implications?

The returns in a mutual fund are absolutely tax free, provided you do not withdraw within 1 year. SBI Magnum COMMA Fund does not qualify for sec 80C ELSS benefits.

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