The Hindu Business Line : Magnum Multiplier Plus: Invest

An investment in Magnum Multiplier Plus can be considered as the fund has notched up an impressive performance over the past couple of years. Investors who held the fund since its launch would be sitting on annualised returns of about 15 per cent. This reinforces the long-term track record to the fund. Investors who wish to diversify their existing portfolio can consider this fund as an option.

Absolute returns of 102 per cent over the past one year has not only outpaced the benchmark index BSE-100 but has also placed the fund in the top-ten equity funds in terms of returns over the above period. The three-year returns at close to 80 per cent also places the fund in the above league.

Magnum Multiplier Plus has handled the volatile market of 2005 deftly and managed to beat a number of other established diversified funds. From a portfolio laden with mid-cap stocks the fund has timed its portfolio churn to focus more on large-cap stocks to counter the market volatility in 2005. The fund has about 85 per cent of the net assets in stocks with a market capitalisation of over Rs 2,000 crore. A number of mid-cap stocks also moved up the ladder to qualify as emerging large-caps over this period. This strategy and timing has paid off well for the fund as it outperformed HDFC Equity, Franklin India Prima Plus and HSBC Equity.

The current stock selection of the portfolio also inspires confidence as it is well placed to capitalise on sectors that appear to be growth themes for the next couple of years. It has also managed to stay away from under-performers such as oil and gas stocks. Capital goods, construction and automobiles account for about half of the fund's net assets.

Sectors with potential

Outlay for infrastructure spending in the country and capex plans by a number of industries appears to showcase potential for these sectors. The fund's hold strategy in stocks such as Bharat Heavy Electricals have also paid off well, after an initial lull. Other buy-and-hold stocks in the portfolio, such as Hindustan Lever and Jaiprakash Associates, have delivered good returns.

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