SBI Magnum Balanced Fund Renamed to SBI Equity Hybrid Fund

SBI Magnum Balanced fund has been renamed to SBI Equity Hybrid Fund. The fund which was initially Hybrid Equity Oriented fund will now fall under the category of Hybrid-Aggressive fund. Its investment strategy has hardly been changed. The fund managers, R. Srinivasan and Dinesh Ahuja follow the strategy of investing in a diversified portfolio of equities of high growth companies and balance the risk by investing the rest in fixed income securities. Also, the fund managers together manage assets worth Rs 28,635 Cr.

Performance

SBI Equity Hybrid Fund is one of the top few performers in the category of balanced funds. It is one of the best performing funds in the last 5-years. The fund has shown its high consistency in its returns. Also, it has performed ahead of its category average since its launch in 2005. Above all, it is known for its excellent track record of paying dividends. Hence, no wonder it’s been highly recommended for investment for retirees and people who are looking for regular income.

SBI Equity Hybrid Fund has beaten its category by 1-2 percentage points in the 1, 3 and 5-year returns. The fund has just about matched its peers in its performance in the 1, 3 and 5-year returns. It is also ranked third in the category of balanced funds by CRISIL.

Fund1 Year Return (%)3 Year Return (%)5 Year Return (%)
SBI Equity Hybrid Fund-2.38%10.48%15.42%
Principal Hybrid Equity Fund Growth-3.35%15.67%15.84%
Reliance Equity Hybrid Fund-9.59%9.17%15.10%
L&T Hybrid Equity Fund-7.35%9.01%15.28%
Tata Hybrid Equity Fund-6.01%7.33%14.32%

Also, a SIP investment of Rs 5,000 a month in the fund started 5 years ago is worth Rs 3.90 lakhs. A profit of Rs 0.9 lakhs in just 5 years.

 

Fund Information

An old-timer in the category, the fund maintains a steady state 75-25 equity-debt mix. The equity portion is a multi-cap, with high exposure to mid-cap stocks. The debt portion of the portfolio strikes a balance by investing in government securities and corporate bonds. Also, the fund invests in high yielding securities with a minimum rating of A-. However, it also secures the portfolio by investing in government bonds and highly liquid AAA-rated securities.

The fund has a diversified portfolio. Also, the top five holding sectors constitute 71.33% of the portfolio. These include financial services (39.92%), services (8.97%), energy (7.96%), IT (7.53%), and sovereign (6.95%).

Recommendation

SBI Equity Hybrid Fund is ideal for medium-term goals to long-term goals. Investors whose risk-taking ability is moderate can look at investing in this fund. Hence, if you are looking for the balanced fund, then along with SBI Equity Hybrid Fund, also consider Principal Hybrid Equity Fund and Reliance Equity Hybrid Fund. All the three funds are doing well in the category of hybrid funds.

 

Fund NameSBI Equity Hybrid Fund
Original Fund NameSBI Magnum Balanced Fund
Launch DateJanuary 19th, 2005
AUMRs 28,635 Cr
Return (Returns greater than 1 year are annualized)Since Launch: 15.85%
1 Year: -2.38%
3 Year: 10.48%
5 year: 15.42%
Expense Ratio2.44%
Fund Category RiskModerate
Investment PlanGrowth
Minimum Investment Horizon3+ years
Minimum InvestmentRs 1,000
Minimum Additional InvestmentRs 1,000
Exit Load1% if withdrawn within 1 year
Fund ManagerR. Srinivasan
Dinesh Ahuja

 

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