The Hindu Business Line : Magnum Multiplier Plus: Hold

Unitholders in Magnum Multiplier Plus can retain their investments on the back of its three-year performance. Over this period, the fund has generated a return of 56 per cent, outpacing its benchmark BSE-100 by 18 percentage points. This places the fund among the top five in this category. The fund predominantly invests in large-cap stocks, with marginal exposure to mid-caps with a market capitalisation of under Rs 2,000 crore. However, the fund has underperformed over the past six months and this has pegged back its ranking. Hence, fresh investments may be put on to hold till a bounce-back in performance is discernible.

Performance: The fund has generated a return of 49 per cent over the past year, marginally ahead of its benchmark, which it outperformed in seven of the past 12 months, on a rolling-return basis. Its one-year performance is similar to peers such as HDFC Top 200 and Franklin India Bluechip.

Portfolio Overview: The fund has a concentrated portfolio and places its bet among select sectors — industrial manufacturing, automobiles and pharma- ceuticals. In the latest portfolio, they account for 46 per cent of assets. The top ten stocks formed 53 per cent of the portfolio.

Pharma, which has been a laggard over the past year, commands 9 per cent of asset allocation. However, stocks such as Cipla and Lupin have generated decent returns. A concentrated bet might be helpful in a bull market but can work against the fund when conditions turn volatile.

This strategy increases the risk profile; hence, the fund is more suited to aggressive investors. The fund's buy-and-hold strategy has paid off in stocks such as BHEL, Jaiprakash Associates, Kotak Mahindra Bank and Nagarjuna Construction. The fund preferred to hold Blue Dart Express in its portfolio without much change in its holdings over the past 10 months, in spite of the stock failing to generate adequate returns.

Fund facts: The fund, which was launched in February 1993, is managed by Sanjay Sinha. Assets under management are Rs 740 crore. The entry load is 2.25 per cent. The NAV per unit is Rs.51.4

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