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SBI Magnum Equity ESG Fund

The SBI Magnum Equity ESG Fund, which was earlier known as SBI Magnum Equity Fund, is a mutual fund scheme by SBI Funds Management Private Limited. This fund was launched on January 1st, 1991. The manager of the fund is Mr. Ruchit Mehta and he has relevant experience in the field of more than fourteen years. He took over as manager of the fund in 2018.

It is an open-ended fund, and therefore an investor can buy or redeem units in the fund on any given business day. The fund forwards the redemption proceeds to the investor within ten business days from the business day on which a valid redemption request is received by the fund.

The assets under management (AUM) of the fund stood at Rs. 2,351 Crore as on August 31, 2019. In order to invest in units of this fund, a minimum commitment of Rs. 1000 is required and every additional investment can be of Rs. 1000.

Investors should be advised that investing in this fund carries a high level of risk, and there is no guarantee that the investment objectives of this fund will be achieved. The NAV of the units of the fund is subject to market risk and gain and loss value, depending on market conditions. There is no entry load on the units; however, if the units are redeemed within a period of one year from the date of allocation, then there is an exit load of one per cent on the value of the redemption.

An investor can invest in this fund under two plans which are (1) direct plan and (2) regular plan. The direct plan is available to investors who subscribe to units of the fund directly rather than through a distributor. The main advantage of investing through the direct plan is that investors can avail a lower expense ratio. Furthermore, the brokerage or commission which is paid to distributors shall not be charged under the direct plan. Investors under the direct plan as well as the regular plan have the option of choosing between a dividend option or growth option.

Investment Objective of SBI Magnum Equity ESG Fund

The principle objective of this fund is to enable long-term capital growth for its investors. The fund seeks to achieve this objective through active and sound management of its portfolio companies. It invests in a diversified selection of companies in order to mitigate sectoral risk and achieve a growth rate which is at par with its benchmark. The companies in which this fund invests in have a proven track record of following the Environmental, Social and Governance (ESG) criteria. Investors should note that the fund, similar to all mutual funds, does not assure its investors that the investment objective will be reached.

The SBI Magnum Equity ESG Fund is thematic in nature because it decides on which companies to invest in based on the ESG (Environmental, Social and Governance) theme. In doing so, the fund looks into the key aspects in which a prospective company is being managed. The Fund has developed its own specialized ESG framework which investigates the risk profile of the company as well as its culture and management practices, in order to ascertain the impact on the company’s shareholders. This framework allows the fund to allocate scores to its potential investments based on which the fund decides whether to invest in a scheme or not.

The advice of external subject-matter specialists may be sought in order to ascertain the score for each potential investment. The active weight which is assigned to each security is dependent on the ESG scores of the company. A company which scores a positive ESG scoring will be assigned a positive active weight, whereas a company with a negative ESG score will be assigned a negative active weight. If a company does not provide sufficient publicly available data in order for the fund to make an informed analysis, then the portfolio manager of the fund shall seek to engage directly with the company in order to obtain the necessary information. The active weights of a company are subject to being capped at zero.

Statistics of SBI Magnum Equity ESG Fund

SBI Magnum Equity ESG Fund Performance

Top Holdings of SBI Magnum Equity ESG Fund

Why Invest in SBI Magnum Equity ESG Fund

Investing in the SBI Magnum Equity ESG Fund is an appropriate choice for investors who are seeking to invest for the long-term in the capital markets. The fund endeavours to provide its investors with long-term capital growth and appreciation of the funds invested. Investing in this Fund carries a high-risk, and hence it is advised that investors use their own discretion to gauge whether they have an appetite for such an investment.

This fund focuses on companies which fulfil the environmental, social, and governance criteria; therefore, investors can rest assured that their investment is going to responsible institutions.

Investors should read the risk factors associated with this Fund in order to better understand whether investing in this Fund is suitable for them.

Documents Required for SBI Magnum Equity ESG Fund

In order to invest in the SBI Magnum Equity ESG Fund, the following documents are required:

  1. PAN card along with driving license or, passport copy, or voter ID, or Bank Photo passbook.
  2. Proof of address such as telephone bill, or passport, or rental agreement, or latest electricity bill, or latest bank passbook, or latest demat account statement, or voter Id, or ration card, or driving license.

FAQs on SBI Magnum Equity ESG fund

What is SBI Magnum Equity ESG fund?

The SBI Magnum Equity ESG Fund is an open-ended mutual fund which is open to subscribers subject to a minimum investment of Rs. 1000. The objective of the fund is to generate long-term capital growth for its investors by investing in a diverse portfolio of equity and equity-linked securities.

What is ESG mutual fund?

An ESG mutual fund is a mutual fund which has a theme of investing in companies which follow the Environmental, Social and Governance criteria. The ESG is a measure of the three main factors which measures the sustainability and ethical impact of an investment in a company.