SBI Magnum Monthly Income Plan 

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  • Initial offer opens: February 22,2001
  • Closing Date:   March 23,2001    
  • Nature of Scheme: Open Ended
  • AMC: SBI Funds Management Limited
  • Load: Nil (for repurchase within six months of investment, an exit load of 0.5% will be charged on the NAV. )
  • Continuous Offer opens: April 23,2001
  • Sponsor: State Bank of India.
  • Trustee: SBI Asset Management Company.
  • Minimum subscription:Rs.10,000 and in multiples of Rs.500. NRIs can apply on repatriable basis.
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Objective of the present fund: To provide regular income, liquidity and attractive returns to the investors through an actively managed portfolio of debt, equity and money market instruments.

  Highlights

  • This scheme offers dividend option and Growth option.
  • Unit holders have switching facility from one scheme to other. This facility is not available to the NRIs, FIIs and OCBs.
  • Tax Free Income in the hands of investors
  • Automatic Withdrawal Facility is available under the Dividend Plan (Monthly option) for investment of Rs. 1,00,000 and above. Under this option investors can exercise the option at the time of application, to withdraw 1% of their outstanding capital through repurchase of units during months where there is no income distribution, subject to minimum balance requirements.

  Strategy of investment

.Under normal circumstances not more than 15 percent of the investible funds would be invested in equity and equity linked instruments and the balance in Debt and Money market instruments.

Some of the Schemes launched by SBI Mutual Fund
Magnum Monthly Income Scheme-1998
Magnum LiquiBond Income Fund Allotment
Magnum InstaCash Fund-Cash Plan
Magnum Growth Fund

Performance overview of  SBI Mutual Fund

Name of the Fund

NAV as on 31.01.2001

(Rs.)

NAV as on 29.12.2000

(Rs.)

NAV as on 30.11.2000

(Rs.)

NAV as on 31.10.2000

(Rs.)

NAV as on 29.09.2000

(Rs.)

Magnum Equity Fund-90 13.09 12.34 12.96 12.67 13.80
Magnum Liqui Bond Income Fund  13.42 12.93 13.17 10.32 10.6383
Magnum Insta Cash Fund-Cash Plan 10.73 10.56 10.4239 11.42 11.3244
Magnum Balance Fund 11.64 11.56 11.49 13.15 14.35

  Comparative Analysis of similar other funds

.
Name of the Fund NAV as on 31.01.2001

(Rs.)

NAV as on 29.12.2000

(Rs.)

NAV as on
30.11.2000

(Rs.)

NAV as on
31.10.2000

(Rs.)

NAV as on
29.09.2000

(Rs.)

Alliance MIP 10.21 10.00 10.09 10.05 10.04
Sun F & C MIP 10.11 10.14 10.02 9.33 9.85
Kothari Pioneer MIP 10.28 10.18   10.17 10.06    -
Reliance MIP 10.11 13.22 10.05 10.15 10.06
.

  Risk Perception

.
In view of the recent cut in CRR and the bank rate, SBI will benefit from the launch of its Monthly Income plan as bond prices are expected to rise in the future, thereby possibly increasing the returns to the investors. The Monthly Income Plan schemes are performing far better when compared to the other schemes. Magnum Monthly Income Plan is launched for the people who are opting for the VRS announced by the government. Investor would do better to opt for the scheme if they wish to have a regular income after their retirement.

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