Friday, September 5, 2008

SBI Magnum contra Fund

Most of my old clients keep asking my view on SBI Magnum contra Fund. They are surprised that I have stopped recommending the fund for investment for quite a while. This message is for those clients.

Lot of boarders on moneycontrol messageboard and even some experts high expectations from SBI Magnum Contra, and Value Research has even given it a 5 Star Rating.
But somehow, I feel do not share the same enthusiasm. Sandeep Sabharwal who used to managed the fund with great acumen has left the fund, in fact, the Fund House itself. The new Fund Manager, has with his own priorities and views has changed the strategy of the fund from a Pure contra play into a diversified fund. But, to his credit, he has been doing a good job.
If you want to invest in a contra Fund, then this fund is definitely not for you, you can think of Fidelity Special Situations or Jm Contra. But if it is a fund which you want from the SBI stable, then you can go for SBI Magnum Comma Fund, Magnum Equity Fund, Magnum Multiplier Plus 1993 Fund. All these funds have good track record and can be considered for investmetn.

But, dear investor, never fall in love with either a Fund or a Fund House, so, go for the best funds, funds which have the potential to give you above average returns. By the way, your choice of investment through sip is laudable.
Keep it up.
Best of luck,

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