NEWS
COLUMNISTS
STOCKS
MUTUAL FUNDS
TAX
INTERVIEW
REAL ESTATE
GOLD
CURRENCY

Fund Pick: Magnum Multiplier Scheme '90

Background

Magnum Multiplier Scheme '90 (MMS '90), the first closed-end equity fund of SBIMF was converted into an open-end fund on completion of its seven year tenure in December 1997. The fund since its launch has paid dividend aggregating 93 per cent since its launch, besides 1:5 rights at par in March 1994.

Performance

MMS'90 has been a consistent performer in its long history of nine years. In its initial years, the fund was market's darling in 1992 during the great Indian scam and traded at 200 per cent premium to its NAV. The fund guarded its initial gains till 1994 to melt for four years thereafter. In the four-year bear phase of the market, the fund also suffered on account of its dividend payout, taking its toll on the portfolio quality. From the last quarter of 1998, the fund has consolidated its position and riding zooming of the rising market.

Over the past one year as on September 30, 1999 the fund is up 99 per cent and ranks number 11 among 34 diversified end equity funds and for the last three months and as on that date it returned 46.58 per cent. The fund is evenly diversified across sectors and very actively managed. The top 15 holdings of the fund account for 61 per cent of net assets. Since March, the fund has made significant changes in its sector allocation and reduced its exposure in Software, FMCG and Pharma stocks. Since March '99, the fund reduced its exposure to software stocks from 35 per cent to 18 per cent, FMCG stocks from 28 per cent to 13 per cent and Pharma stocks from 14 per cent to 9.5 per cent and instead picked up stakes in the engineering sector, hence, getting a cyclical -skew.

Outlook

The fund could be an attractive long-term investment, for its diversification with sharp portfolio focus. The 2 percent exit load is to deter short-term investment in the fund.

FUND BASICS
Objective	Size (Rs. Crore)	NAV: 13/10/99	Exit Price	Entry Price	Total Returns
Growth	161.64 cr.	24.26	23.77	24.26	10.61%
BENCHMARK COMPARISONS (%)					30/9/99
	1M	3M	6M	1Yr	3Yr
Fund	8.7	46.6	36.9	98.7	28.3
Sensex	-2.9	15.1	27.4	53.6	13.5
Nat. Index	0.7	23.6	34.0	60.4	14.9
Obj. Avg.	4.9	24.1	22.2	49.5	9.9
Top Holdings (31/8/99)					Net Asset (%)
Grasim Industries					7.48
Ranbaxy Laboratories					6.32
Bharat Heavy Electricals					5.68
Infosys Technologies					5.09
Zee Telefilms					5.01
Dabur India					4.45
Hindustan Lever					3.87
Ashok Leyland					3.49
Container Corpn. Of India					3.24
Vikas Wsp					3.23
Asea Brown Boveri					2.85
Escorts					2.77
Software Solutions					2.66
Tata Tea					2.66
Larsen & Toubro					2.42

Mutual Funds

Tell us what you think of this feature