Tuesday, September 13, 2005

SBI Multi cap fund

If you are wondering whether the market will touch 10K ( Senses) as predicted by some, but nor sure of the direction in which the market will go, it is time you look at this fund. This is a pure equity oriented fund and thus offers all the gains and risks associated with stock market. The attraction in the new fund offer is that you do not have pay any entry load for NFO subscribers,if stay invested beyond 1 year. ( I am referring to small investors and not those institutional investors in crores.)
If you are not risk averse to equity funds, this is a fund that can be looked at.
( all usual disclaimers will apply.) The allocation of the fund,is maximum of 40% in mid cap and 10% in small caps. This ceiling really is a compromise looking at perception that mid cap and small cap stocks are high risk investments. Thus the return you can expect from this fund, will be similar to large cap funds. At the same time is that this is not a sectorial fund, thus allows more options to the fund manager to maximise returns. In short this is pure equity funds offering you the advantages of associated tax benefits.

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