SBI Midcap Fund Direct Growth

SBI Magnum Midcap Fund - Direct Growth is a mid-cap mutual fund. This fund invests at least 65% of its assets in mid-cap stocks. Mid-cap stocks as classified by SEBI, are companies that rank 101st to 250th on the stock exchange as per their market capitalization.

SBI mid-cap fund also allocates assets to equities of companies other than mid-cap fund, debt and money market instruments and foreign securities. The fund’s portfolio is diversified across multiple sectors like Financials, Healthcare, Construction, Automobiles, etc.

Investment Strategy

SBI Magnum Mid-Cap Fund’s fund manager, Bhavin Vithlani, follows a value and growth-based investment strategy that includes finding businesses with good fundamentals, sustainable earnings and reasonable valuations.

Who Should Invest In SBI Magnum Midcap Fund?

Mid-cap companies are emerging businesses that eventually become large-cap companies. This fund is suitable for investors who:

-Want to tap into the growth potential of mid-sized companies

-Have a moderate to high-risk appetite 

-Have a long-term investment horizon

Taxation on SBI Magnum Midcap Fund

SBI Magnum Midcap Fund is treated as an equity mutual fund for tax purposes. The tax you pay depends on how long you stay invested.

If held for more than 12 months, your gains are classified as Long-Term Capital Gains (LTCG). Gains up to ₹1,25,000 are tax-free in a financial year. Any amount above that is taxed at 12.5%.

If sold within 12 months, the gains fall under Short-Term Capital Gains (STCG) and are taxed at 20%.

Allocation & Historical Returns

Currently, the fund's portfolio comprises 12.6% small-cap stocks, 13.04% large-cap stocks, and 67.21% mid-cap stocks.

With an AUM of ₹22547.0 crores, SBI Midcap Fund Direct Growth generated a return of -3.5% in 1 year, 16.7% in 3 years, 26.2% in 5 years. while its benchmark index (Nifty Midcap 150) generated -1.0% in 1 year, 22.4% in 3 years, and 26.8% in 5 years.