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Magnum Multiplier Plus Scheme 1993

Dhirendra Kumar

Magnum Multiplier Plus Scheme 1993 (MMPS '93), the largest equity fund of State Bank of India Mutual Fund, was launched as a close-ended fund in February 1993, raising Rs 9670 million from over 1.6 million investors.

The fund was converted into an open-ended fund on March 31, 1998. Post-conversion, the fund has paid two dividends of 15 per cent each in May 1998 and September 1999. Entry into the fund is at 1.5 per cent load and the redemption is at net asset value.

MMPS '93 has given an annualised return of 10.92 per cent since its launch against 5.97 per cent by the Sensex. In the post-cyclical rally of second quarter 1999, the fund had pared its growth sector allocation in favour of cyclicals.

However, beginning January 2000, it went overweight on the convergence stocks of software, media and telecom hiking the allocation to 72 per cent as on March end (up from 51 per cent in December 1999). As a result, the fund has been a severe casualty of the recent carnage in the bourses losing as much as 63.5 per cent. As on April 30, the allocation to ICE is 60 per cent.

MMPS '93 is an actively managed fund with periodic realignment according to the changes in the market impulses. Though the overexposure to the ICE sector will make the fund volatile, it has a quality portfolio that should give favourable returns in the long-term.

Fund Basics
Objective	Size (Rs cr)	NAV (in Rs on 26/5/2000)	Exit price (Rs)	Entry price (Rs)	Total Returns (%)
Growth	486	16.52	16.52	16.77	10.92%
Benchmark Comparisons (%)					26/5/2000
	1M	3M	6M	1Yr	3Yr
Fund	-25.1	-60.6	-27.2	21.3	16.2
Sensex	-14.8	-27.4	-13.2	2.8	3.3
Nat. Index	-21.6	-41.9	-11.4	15.4	7.5
Obj. Avg.	-14.4	-38.5	-12.7	25.7	16.2
Top Holdings (1/5/2000)					Net Asset (%)
SSI					14.12
Himachal Futuristic					9.26
Zee Telefilms					9.10
Ramco Systems					9.07
Vikas WSP					5.23
Sterlite					4.47
Global Tele					4.16
VisualSoft					3.44
Hughes Software					3.36
Indian Shaving					2.65

Source: Value Research

Mutual Funds

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