Is it safe to invest in SBI Magnum Midcap Fund in 2025?: For the last 37 years, SBI Mutual Fund has been helping Indians build wealth. Over time, it has earned a strong place in the hearts of Indian investors. One major reason is trust — even if we do not trust everything, we certainly trust SBI and LIC. Naturally, whenever SBI Mutual Fund launches a new scheme, investors respond with heavy investments.
This trust has helped SBI Mutual Fund cross a massive AUM of over Rs 10 lakh crore. Over the decades, the fund house has launched several successful schemes that have offered strong returns to investors. One such scheme is the SBI Magnum Midcap Fund, which has not delivered extremely high returns but has consistently performed close to its benchmark.
Why Investors Consider This Fund Even in a Volatile Market
In today’s volatile market, the SBI Magnum Midcap Fund is often seen as a stable option. The primary reason: SBI fund managers generally make very few portfolio changes, which helps control volatility.
The fund’s turnover ratio is just 30%, meaning the fund managers make limited changes throughout the year. Funds with fewer changes may not always deliver exceptional returns, but they usually face lower volatility.
Fund Overview and Past Performance
The SBI Magnum Midcap Fund belongs to the midcap category and was launched on 29 March 2005. Since launch, the scheme has delivered a 17.3% annual return for its NFO investors.
If you had invested Rs 1 lakh during the NFO, it would have grown to over Rs 20 lakh today. But if you had started a SIP instead of a lump sum, your returns would have crossed Rs 15 lakh.
Past Returns Comparison
| Period | SBI Magnum Midcap Fund | Benchmark (Nifty Midcap 150 TRI) |
|---|---|---|
| 1 Year | 21.47% | 26.87% |
| 3 Years (Annualised) | 19.83% | 23.80% |
| 5 Years (Annualised) | 27.20% | 28.61% |
The scheme has struggled to beat its benchmark and category returns. It performed better than category peers between July 2022 and November 2023, but the last one year has been comparatively dull.
Risk Profile and AUM Details
Because this is a pure equity scheme, it falls under the Very High Risk category.
The scheme’s AUM is Rs 24,555 crore, making it one of the larger midcap funds in the market. It also has an exit load of 1% for withdrawals made within one year.
Investment Details
- Minimum lump sum investment: Rs 5,000
- Minimum SIP: Rs 500
- Equity allocation: 94.3%
- Cash + Debt allocation: Remaining percentage
Where the Fund Invests
Equity allocation breakdown:
- Large Cap: 27.8%
- Mid Cap: 67.54%
- Small Cap: 4.65%
The fund invests across nine sectors, including:
- Consumer Discretionary
- Industrials
- Financial Services
- Materials
- Healthcare
There are 66 stocks in the portfolio. The top five holdings are:
- Crisil
- Torrent Pharma
- Coromandel International
- Sundaram Finance
- KPR Mill
No stock has more than 4% exposure, helping reduce concentration risk.
Risk Ratios
The fund’s beta is 0.76, indicating lower volatility than the market. Midcap schemes generally carry less risk than small-cap funds during downturns, but they are still pure equity investments.
Should You Invest?
You should consider the SBI Magnum Midcap Fund only if your investment horizon is 4–5 years or more. As a very high-risk midcap scheme, investors should consult a financial expert before investing.
- Assess your risk appetite
- Align with long-term financial goals
- Compare with other midcap funds for potentially better returns
FAQs on Is it safe to invest in SBI Magnum Midcap Fund in 2025?
1. Is SBI Magnum Midcap Fund suitable for beginners?
This fund is a high-risk equity option, better suited for experienced investors.
2. Has the fund beaten its benchmark?
No, the fund has not consistently beaten the Nifty Midcap 150 TRI benchmark.
3. What is the minimum SIP amount?
The minimum SIP amount is Rs 500.
4. How risky is this fund?
It falls under the Very High Risk category due to heavy midcap allocation.
5. Who should consider investing in this fund?
Investors with a long-term horizon and ability to handle volatility may consider it.
Disclaimer: All details in this article is only for education purpose only numbers may we sometimes wrong re verify from trusted sources. Also visit official website of sbi.
Ajay Yadav is a financial writer who simplifies money, savings, and investing for everyday readers. He creates easy-to-understand content that helps people make smarter financial decisions and build long-term wealth.
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