SBI Magnum COMMA Fund Review

Indian Mutual Fund market is full of variety of funds. However, since the last few years, Commodity based mutual funds have shown to be the best performing asset class across the globe. This has led many mutual fund house to launch funds dedicated to investments in commodity sector companies with equity investment and similar other instruments. The latest offerings in the Commodity mutual funds being : Mirae Asset Global Commodity Fund.


However, there is a similar commodity fund available in the Indian Mutual Fund market from the leading mutual fund house of SBI. It’s called the SBI Magnum COMMA Fund.

What is the investment objective of SBI Magnum COMMA Fund?
The SBI Magnum COMMA Fund will be investing the money in a portfolio of stocks of companies engaged in the commodity business within the following sectors - Oil& Gas, Metals, Materials & Agriculture and in debt & money market instruments, thereby attempting to generate capital appreciation from the rising prices of commodities.

How will the money be allocated in the SBI Magnum COMMA Fund?
Around 65% to 100% of the investors money will be allocated to Equity and equity related instruments of commodity based companies, which indicate the High Risk High Reward profile of the investment. Some portion may be put in Foreign Securities/ADRs/GDRs of commodity based companies. Remaining would be kept in liquid debt instruments & cash for convenient redemption.

What is the minimum investment required for SBI Magnum COMMA Fund investment?
For investment in SBI Magnum COMMA Fund, minimum amount is Rs. 5000 and later in multiples of Rs. 1000.

Is there any choice of payout option in SBI Magnum COMMA Fund?
Yes. There are Growth and dividend payout investment options available. Along with that, the investors also have reinvestment and payout facility.

Any tax benefit available for investing in SBI Magnum COMMA Fund?
No. There is no tax benefit available for investments in SBI Magnum COMMA Fund. However, the dividend paid by the SBI Magnum COMMA Fund is completely tax free. Also Long Term capital gains tax exemption will be beneficial to the investor if invested for long term.

What are the exit and entry load for SBI Magnum COMMA Fund?
An entry load of 2.25% will be charged for investments less than 5 Crores. For higher amounts, NIL entry load.
Exit Load For less than 5 Crores,
  exit within less than 6 months – 1%
  Exit between 6 & 12 months – 0.5%
  Exit after 12 months – NIL
For investment more than 5 Crores – NIL exit load at all times.

Is there a SIP or systematic investment plan available for investment in SBI Magnum COMMA Fund?
Yes. There is a SIP plan available for investment in SBI Magnum COMMA Fund.
Rs.500/month - 12 months
Rs.1000/month - 6months
Rs.1500/quarter - 12 months

Withdrawal from SIP - A minimum of Rs. 500 can be withdrawn every month or quarter by indicating in the application form or by issuing advance instructions to the Registrars at any time

How is the performance and NAV values of SBI Magnum COMMA Fund? As on 24th July 2008, the NAV value is 19.11 for Growth Option while 17.35 for Dividend Option.

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