SBI Mutual Fund‘s SBI Long Term Equity Fund is designed for long-term capital appreciation with the added benefit of tax savings under Section 80C. It has a diversified portfolio across large, mid, and small-cap stocks and is suitable for investors looking for tax-efficient investment options with a mandatory 3-year lock-in period.
SBI Magnum COMMA Fund focuses on the commodities sector, offering potential high returns but with higher risk due to its concentrated bets in specific sectors like refineries, metals, and energy. It is suitable for investors with advanced knowledge of macro trends who are willing to accept moderate to high volatility for potentially higher returns.
| Fund | Description |
| SBI Long Term Equity Fund | An open-ended Equity Linked Saving Scheme (ELSS) with a statutory lock-in period of 3 years, offering tax benefits under 80C. |
| SBI Magnum COMMA Fund | A sectoral/thematic fund focused on commodities, offering potential high returns with a high risk due to concentrated bets. |
Fund Details
| Characteristic | SBI Long Term Equity Fund | SBI Magnum COMMA Fund |
| Risk Level | Very High | Very High |
| AUM (as of May 31, 2024) | ₹23,892.75 Cr | ₹596.51 Cr |
| Expense Ratio | 1.62% | 2.53% |
| Inception Date | March 31, 1993 | August 8, 2005 |
| Benchmark | S&P BSE 500 TRI, S&P BSE Sensex TRI | Nifty Commodities TRI |
| Investment Objective | Long-term capital appreciation and tax planning | Higher returns through investments in commodities |
Performance Comparison
| Metric | SBI Long Term Equity Fund | SBI Magnum COMMA Fund |
| 1 Year Return | 60.35% | 52.38% |
| 3 Year Return | 107.17% | 54.12% |
| 5 Year Return | 175.25% | 169.75% |
| 10 Year Return | 359.05% | 303.51% |
| Since Inception Return | 3898.65% | 891.83% |
Portfolio Composition
| Composition | SBI Long Term Equity Fund | SBI Magnum COMMA Fund |
| Equity | 91.99% | 95.33% |
| Debt | 0% | 0% |
| Others | 8.01% | 4.67% |
| Large Cap Stocks | 52.94% | 43.84% |
| Mid Cap Stocks | 12.74% | 7.85% |
| Small Cap Stocks | 12.34% | 22.92% |
| Number of Stocks | 65 | 23 |
Risk and Volatility
| Metric | SBI Long Term Equity Fund | SBI Magnum COMMA Fund |
| Standard Deviation | 11.52 | 15.38 |
| Beta | 0.92 | 0.88 |
| Sharpe Ratio | 1.68 | 0.72 |
| Treynor’s Ratio | 0.21 | 0.13 |
| Jensen’s Alpha | 7.56 | -3.97 |
Suitability
| Suitable For | SBI Long Term Equity Fund | SBI Magnum COMMA Fund |
| Investors seeking tax benefits | Investors seeking long-term capital appreciation and tax benefits | Investors with advanced knowledge of macro trends and willing to take selective bets for higher returns |
Both funds cater to different investment needs and risk appetites, making them suitable for different types of investors. The Long Term Equity Fund is ideal for those looking for tax savings and diversified equity exposure, while the COMMA Fund is better suited for those looking to capitalize on specific sectoral trends within the commodities market.
Disclaimer: The information provided in this article is for educational and informational purposes only. It should not be considered investment advice or a recommendation to invest in any particular mutual fund or asset class. Past performance does not indicate future results, and investors should research and consult with a financial advisor before making investment decisions. Investing in mutual funds involves risks, including the possible loss of principal invested.
Note: Data as on June 15, 2024
