Investing in mutual funds requires a keen understanding of various factors, from investment style to returns and systematic investment plans (SIPs). This comprehensive analysis will explore the nuances of two prominent funds—Axis Midcap Fund and SBI Magnum Midcap Fund. Let’s embark on this journey of comparison to help you make informed investment decisions.
Understanding Investment Style
Axis Midcap Fund – Embracing Growth Opportunities
With a growth-oriented approach, Axis Midcap Fund seeks to capitalize on emerging opportunities within the midcap segment. This strategy aligns with the fund’s objective of delivering long-term capital appreciation.
SBI Magnum Midcap Fund – Focused on Growth Trajectory
Similarly, SBI Magnum Midcap Fund adopts a growth-oriented investment style. The fund navigates the midcap landscape, aiming for sustained growth and wealth creation over the investment horizon.
Returns Analysis: Unveiling Performance Metrics
Annualized Returns (NAV as of Oct 30, 2023)
Period Invested for
Axis Midcap Fund
SBI Magnum Midcap Fund
Category Avg
1 Year
13.06%
18.71%
19.93%
2 Year
5.56%
13.67%
11.69%
3 Year
22.70%
33.47%
29.40%
5 Year
19.19%
21.87%
19.88%
10 Year
21.17%
21.77%
20.95%
Analysis:
Both funds have shown commendable performance over various periods.
SBI Magnum Midcap Fund outperforms in shorter durations, emphasizing its potential for quick returns.
Axis Midcap Fund maintains stability over longer horizons, showcasing consistent growth.
Lumpsum Investment Value (NAV as of Oct 30, 2023)
Period Invested for
Axis Midcap Fund
SBI Magnum Midcap Fund
1 Year
₹11,305.5
₹11,871
2 Year
₹11,143.9
₹12,920.9
3 Year
₹18,474.9
₹23,775.1
5 Year
₹24,076
₹26,911.6
10 Year
₹68,377.3
₹71,835.2
Analysis:
The lumpsum investment values highlight the growth potential of both funds.
Axis Midcap Fund demonstrates steady growth, reflecting its consistency.
SBI Magnum Midcap Fund showcases higher values, especially in shorter durations, indicating the potential for quicker returns.
SIP Returns (NAV as of Oct 30, 2023)
Period Invested for
Axis Midcap Fund
SBI Magnum Midcap Fund
1 Year
19.74%
26.33%
2 Year
13.17%
19.57%
3 Year
14.21%
21.70%
5 Year
19.35%
25.84%
10 Year
17.98%
18.42%
Analysis:
SBI Magnum Midcap Fund exhibits higher SIP returns, suggesting its potential for consistent performance over the long term.
Axis Midcap Fund maintains competitive SIP returns, providing stability and growth.
SIP Investment Value (NAV as of Oct 30, 2023)
Period Invested for
Investments
Axis Midcap Fund
SBI Magnum Midcap Fund
₹1000 SIP Started on
1 Year
₹12,000
₹13,249.21
₹13,651.88
28-Oct-22
2 Year
₹24,000
₹27,373.7
₹29,067.21
29-Oct-21
3 Year
₹36,000
₹44,480.48
₹49,444.42
30-Oct-20
5 Year
₹60,000
₹97,187.3
₹1,13,666.75
30-Oct-18
10 Year
₹1,20,000
₹3,08,883.7
₹3,16,294.47
30-Oct-13
Analysis:
Both funds illustrate the power of compounding through SIPs.
SBI Magnum Midcap Fund demonstrates higher investment values, especially in longer durations.
CAGR: Compounded Annual Growth Rate
Category
1 Y
3 Y
5 Y
9 Y
Axis Midcap Fund
22.73%
21.54%
21.25%
16.15%
SBI Magnum Midcap Fund
27.93%
29.44%
23.66%
16.44%
Nifty 50
6.52%
3.86%
17.64%
12.74%
Analysis:
Both funds outperform the Nifty 50 across different time frames.
SBI Magnum Midcap Fund consistently outshines in terms of CAGR, indicating its potential for higher returns.
Rolling Returns: Analyzing Consistency
Category
1 Y
3 Y
5 Y
9 Y
Axis Midcap Fund
23.25%
19.30%
18.10%
19.85%
SBI Magnum Midcap Fund
24.80%
19.10%
14.90%
19.80%
Analysis:
Rolling returns indicate the funds’ ability to weather market fluctuations.
SBI Magnum Midcap Fund demonstrates higher consistency, particularly over shorter durations.
Best Quarters: Riding High on Peaks
Analyzing the best-performing quarters unveils the funds’ potential for rapid growth. Let’s explore how both funds fared during their best quarters:
Period
Axis Midcap Fund
SBI Magnum Midcap Fund
Nifty 50
Q2 – 2020
17.41%
26.31%
24.82%
Q2 – 2023
16.51%
18.33%
10.29%
Q4 – 2020
17.66%
23.81%
22.46%
Analysis:
Both funds showcase remarkable performance during their best quarters.
SBI Magnum Midcap Fund demonstrates higher returns, indicating its potential to capitalize on market upswings.
Worst Quarters: Navigating Through Challenges
Understanding how funds perform during challenging periods is equally essential. Here are the worst quarters for both funds:
Period
Axis Midcap Fund
SBI Magnum Midcap Fund
Nifty 50
Q1 – 2018
-7.67%
-2.14%
Q1 – 2020
-17.68%
-26.44%
-29.43%
Q2 – 2022
-8.58%
-10.70%
Analysis:
Both funds experienced downturns during challenging market phases.
SBI Magnum Midcap Fund had a steeper decline in Q1 2020, suggesting higher risk and potential for significant recovery.
Maximum Drawdown: Gauging Risk and Resilience
Maximum drawdown measures the most significant peak-to-trough decline. Let’s explore the maximum drawdowns for both funds:
Category
Axis Midcap Fund
SBI Magnum Midcap Fund
Category
3-Yr
-14.25
-8.23
-10.65
5-Yr
-21.32
-31.7
-27.72
10-Yr
-22.86
-38.19
-27.88
Analysis:
Axis Midcap Fund exhibits lower drawdowns, indicating better resilience during market downturns.
SBI Magnum Midcap Fund experiences higher drawdowns, suggesting higher risk and potential for significant gains.
While SBI Magnum Midcap Fund tends to have higher returns during the best quarters, it also faces steeper declines in challenging times. On the other hand, Axis Midcap Fund showcases a more stable performance with lower drawdowns, making it an option for risk-averse investors.
Understanding Annualized Returns
Annualized returns are the average annual growth rate over a specific period, providing a clear snapshot of a fund’s performance. Here’s a detailed analysis of the annualized returns for both funds:
Annualized Returns (NAV as of Oct 30, 2023)
Period
Axis Midcap Fund
SBI Magnum Midcap Fund
2023
17.11%
22.72%
2022
-3.86%
3.95%
2021
39.10%
50.00%
2020
27.50%
30.69%
2019
13.22%
0.35%
2018
4.91%
-17.10%
2017
43.60%
35.02%
2016
-2.19%
5.98%
Analysis:
SBI Magnum Midcap Fund consistently outperforms Axis Midcap Fund in annualized returns over the given period.
2017 and 2021 saw remarkable growth for both funds, with 2017 being particularly lucrative for Axis Midcap Fund.
Outperformance Analysis
Outperformance indicates a fund’s ability to deliver higher returns than a benchmark or another fund. Let’s explore how many times each fund outperformed the other:
Outperformance Analysis
Axis Midcap Fund
SBI Magnum Midcap Fund
No. of Times Outperformance
3
5
Analysis:
SBI Magnum Midcap Fund outperformed Axis Midcap Fund more frequently, suggesting a higher consistency in delivering superior returns.
However, Axis Midcap Fund had moments of triumph, showcasing resilience and potential.
Here’s a deeper dive into what these numbers signify:
SBI Magnum Midcap Fund’s Dominance: The fund consistently boasts higher annualized returns, making it an attractive option for investors seeking aggressive growth. The five instances of outperformance reinforce its strong track record.
Axis Midcap Fund’s Steadiness: While it may not consistently outshine its counterpart, Axis Midcap Fund demonstrates stability, even in challenging market conditions. It could be ideal for risk-averse investors looking for a more tempered investment journey.
Quarterly Performance Unveiled
Quarterly results provide a microcosmic view of a fund’s performance, capturing the highs and lows it encounters. Let’s dissect the quarterly performances of both funds:
Quarterly Results (NAV as of Oct 30, 2023)
Period
Axis Midcap Fund
SBI Magnum Midcap Fund
Q4 – 2023
-1.77%
-1.99%
Q3 – 2023
5.42%
7.47%
Q2 – 2023
16.51%
18.33%
Q1 – 2023
-2.93%
-1.55%
Q4 – 2022
-2.39%
-1.99%
Q3 – 2022
14.20%
14.88%
Q2 – 2022
-11.13%
-5.35%
Q1 – 2022
-3.44%
-3.15%
Q4 – 2021
2.38%
6.92%
Q3 – 2021
13.27%
10.43%
Q2 – 2021
11.03%
10.76%
Q1 – 2021
8.85%
15.23%
Q4 – 2020
17.66%
23.81%
Q3 – 2020
13.48%
13.02%
Q2 – 2020
17.41%
26.31%
Q1 – 2020
-17.68%
-26.44%
Q4 – 2019
6.51%
5.52%
Q3 – 2019
2.79%
-5.38%
Q2 – 2019
1.22%
-3.36%
Q1 – 2019
2.59%
5.46%
Q4 – 2018
4.39%
3.37%
Q3 – 2018
1.38%
-5.01%
Q2 – 2018
2.14%
-8.56%
Q1 – 2018
-2.66%
-8.25%
Q4 – 2017
12.69%
13.53%
Q3 – 2017
4.78%
-0.11%
Q2 – 2017
5.91%
4.01%
Q1 – 2017
14.83%
14.46%
Q4 – 2016
-9.29%
-7.40%
Q3 – 2016
5.80%
6.19%
Analysis:
SBI Magnum Midcap Fund consistently maintains a marginally higher or equal performance than Axis Midcap Fund throughout the quarters.
The contrasting negative performances in Q1 2020 showcase the funds’ vulnerability to market turbulences.
Dueling Titans: Number of Times Outperformance
The battle between these funds becomes more intriguing when analyzing the number of times each outperformed the other:
Number of Times Outperformance
Axis Midcap Fund
SBI Magnum Midcap Fund
No. of Times Outperformance
15
15
Analysis:
The numbers paint a picture of a neck-and-neck competition, with both funds outperforming each other an equal number of times.
It indicates the resilience and competitiveness of both Axis Midcap Fund and SBI Magnum Midcap Fund.
Now, let’s delve into the risk parameters of two titans: Axis Midcap Fund and SBI Magnum Midcap Fund. The journey involves understanding mean returns, Sortino ratios, Treynor’s ratios, standard deviations, Sharpe ratios, betas, and alphas across 3, 5, and 10-year horizons.
Understanding Mean Returns: The Heartbeat of Investments
Mean Return (%)
Mean returns, the heartbeat of investments, reflect the average gain or loss over a specified period. Here’s how our contenders fare:
Axis Midcap Fund
SBI Magnum Midcap Fund
3-Year Returns
21.68
30.17
5-Year Returns
2.49
3.05
10-Year Returns
0.17
0.25
Analysis:
SBI Magnum Midcap Fund leads in mean returns, indicating potentially higher profits over the analyzed periods.
Navigating the Volatility: Sortino and Standard Deviation
Sortino (%)
Sortino ratios distinguish between total and downside volatility, providing a clearer risk picture. Let’s navigate through the numbers:
Axis Midcap Fund
SBI Magnum Midcap Fund
3-Year Sortino
2.49
3.05
5-Year Sortino
0.17
0.25
10-Year Sortino
–
–
Analysis:
Both funds showcase similar Sortino ratios, emphasizing the importance of managing downside risk.
Standard Deviation (%)
Time Period
Axis Midcap Fund
SBI Magnum Midcap Fund
3-Year Standard Deviation
13.81
13.89
5-Year Standard Deviation
17.04
21.27
10-Year Standard Deviation
17.21
3-Year Standard Deviation
Analysis:
Axis Midcap Fund demonstrates lower standard deviations, suggesting lower volatility over the analyzed periods.
Sharpe Ratios: Balancing Risk and Reward
Sharpe (%)
Sharpe ratios measure the efficiency of a fund in delivering returns relative to its risk. Let’s assess the balance:
Axis Midcap Fund
SBI Magnum Midcap Fund
3-Year Sharpe
1.11
1.65
5-Year Sharpe
0.88
0.85
10-Year Sharpe
0.87
0.82
Analysis:
SBI Magnum Midcap Fund consistently exhibits higher Sharpe ratios, implying a more efficient risk-reward balance.
Beta: Assessing Sensitivity to Market Movements
Beta (%)
Beta measures a fund’s sensitivity to market movements. A beta greater than 1 implies higher volatility than the market, whereas a beta less than 1 indicates lower volatility.
Axis Midcap Fund
SBI Magnum Midcap Fund
3-Year Beta
0.83
0.82
5-Year Beta
0.75
0.95
10-Year Beta
0.82
0.90
Analysis:
Both funds maintain betas of less than 1, portraying lower volatility than the market.
Axis Midcap Fund generally exhibits lower betas, indicating slightly lower sensitivity to market movements.
Alpha: Unearthing Managerial Skills
Alpha (%)
Alpha measures a fund manager’s ability to create returns beyond expectations based on its Beta.
Axis Midcap Fund
SBI Magnum Midcap Fund
3-Year Alpha
-2.21
5.71
5-Year Alpha
3.79
3.89
10-Year Alpha
3.41
2.75
Analysis:
SBI Magnum Midcap Fund consistently showcases positive alphas, indicating superior performance relative to expected returns.
Axis Midcap Fund struggles with negative alphas, suggesting challenges in outperforming expectations.
In the realm of risk, SBI Magnum Midcap Fund emerges as the bolder contender, offering potentially higher returns with efficient risk management. However, Axis Midcap Fund maintains a steadier course with lower volatility and betas.
Now, let’s dive deep into the waters of Crisil Rank, Value Research Rating, and Morning Star Rating to unravel the performance of two notable vessels: Axis Midcap Fund and SBI Magnum Midcap Fund.
Crisil Rank: Starry Assessments
(Updated on Sep 30, 2023)
Fund
Axis Midcap Fund
SBI Magnum Midcap Fund
Crisil Rank
1 Star
4 Star
(Updated Historically)
Date
Axis Midcap Fund
SBI Magnum Midcap Fund
Jun 30, 2023
2 Star
4 Star
Mar 31, 2023
2 Star
4 Star
Dec 31, 2022
2 Star
4 Star
Sep 30, 2022
3 Star
4 Star
Analysis:
Axis Midcap Fund started with a lead but has seen a gradual decline in its Crisil Rank. In contrast, SBI Magnum Midcap Fund maintains a consistent 4-star rating.
Investors should keep a keen eye on Crisil Ranks as they provide insights into a fund’s relative performance within its category.
Value Research Rating: A Glimpse into Fund Competence
(Latest Available Ratings)
Fund
Axis Midcap Fund
SBI Magnum Midcap Fund
Value Research Rating
3 Star
5 Star
Analysis:
According to Value Research, SBI Magnum Midcap Fund takes the lead with a 5-star rating, indicating strong competence.
Morning Star Rating: Basking in Stars
(Latest Available Ratings)
Fund
Axis Midcap Fund
SBI Magnum Midcap Fund
Morning Star Rating
4 Star
4 Star
Analysis:
Both funds bask in the glory of 4 stars, according to Morning Star, showcasing their prowess in the morning light of market performance.
Let’s explore the Axis Midcap Fund and SBI Magnum Midcap Fund portfolios. Let’s dissect the numbers, analyze the market cap allocations, and decipher sector-wise investments to unravel the strategies behind these funds.
Portfolio Overlapping: Unravelling the Tapestry
(Updated Data)
Fund
Axis Midcap Fund
SBI Magnum Midcap Fund
Portfolio Overlap Total %
48.11
51.14
Analysis:
Regarding portfolio overlap, both funds maintain a moderate level, with Axis Midcap Fund at 48.11% and SBI Magnum Midcap Fund at 51.14%.
Investors can use this information to diversify effectively, ensuring their investment tapestry is not overly concentrated.
Portfolio Breakdown
(As of the Latest Available Data)
Category
Axis Midcap Fund
SBI Magnum Midcap Fund
Equity
92.15%
92.25%
Debt
7.60%
0.69%
Cash & Cash Eq.
0.25%
7.06%
Analysis:
Both funds focus significantly on equity, with Axis Midcap Fund slightly edging out regarding debt allocation.
The cash and cash equivalents percentage show a divergence in strategy, with SBI Magnum Midcap Fund holding more liquidity.
Market Cap Allocation
(As of the Latest Available Data)
Category
Axis Midcap Fund
SBI Magnum Midcap Fund
No of Stocks
67
69
Large Cap
9.93%
3.98%
Mid Cap
44.33%
41.72%
Small Cap
19.93%
24.01%
Analysis:
Both funds maintain diverse portfolios with varying stocks, demonstrating their approach to market cap allocations.
Axis Midcap Fund has a slightly higher allocation in large and mid-cap stocks, while SBI Magnum Midcap Fund leans more towards small-cap stocks.
Sector Allocation
(As of the Latest Available Data)
Sector
Axis Midcap Fund
SBI Magnum Midcap Fund
Financial
17.41%
9.64%
Automobile
12.10%
14.16%
Services
10.83%
9.79%
Capital Goods
10.55%
11.65%
Materials
9.31%
3.86%
Chemicals
9.05%
7.48%
Technology
6.42%
2.03%
Healthcare
5.35%
7.66%
Consumer Discretionary
2.40%
3.15%
Metals & Mining
1.99%
4.97%
Communication
1.92%
4.13%
Construction
1.60%
NA
Textiles
1.11%
7.34%
Diversified
1.08%
NA
Energy
1.04%
3.13%
Consumer Staples
0.30%
4.12%
Analysis:
Axis Midcap Fund demonstrates a diversified sector approach, with a notable emphasis on financials. At the same time, the SBI Magnum Midcap Fund has a more pronounced allocation in the automobile and healthcare sectors.
The absence of data in specific sectors for the SBI Magnum Midcap Fund suggests a more concentrated strategy.
Now, let’s look closer at the fund managers, the numbers they’ve churned, and the dynamics that make each fund unique. Let’s embark on a journey into the world of Axis Midcap Fund and SBI Magnum Midcap Fund.
Meet the Captains: Fund Managers
Axis Midcap Fund
Fund Manager
Tenure
Shreyash Devalkar
Nov 26, 2016 – Present
Vinayak Jayanath
Jan 17, 2023 – Present
Nitin Arora
Aug 03, 2023 – Present
Analysis:
Shreyash Devalkar brings a wealth of experience with almost seven years at the helm.
Vinayak Jayanath and Nitin Arora are relatively new but add a fresh perspective.
vs
SBI Magnum Midcap Fund
Fund Manager
Tenure
Sohini Andani
Jul 01, 2010 – Present
Mohit Jain
Nov 30, 2017 – Present
Analysis:
Sohini Andani boasts an impressive tenure of over 14 years, providing stability and seasoned insights.
With almost six years of experience, Mohit Jain contributes a blend of experience and a contemporary approach.
Fund Metrics: Numbers Speak Louder
Performance Metrics
Metric
Axis Midcap Fund
SBI Magnum Midcap Fund
NAV
95.3
209.49
AUM (in Cr.)
23549
14454
Expense Ratio (%)
0.54
0.86
Turnover
23%
14%
Benchmark
Nifty midcap 100
Nifty midcap 100
Analysis:
Axis Midcap Fund boasts a higher AUM despite a lower NAV, indicating strong investor trust.
SBI Magnum Midcap Fund has a slightly higher expense ratio, which could impact overall returns.
Investment Dynamics: Entry Points
Minimum Investment Amount
Investment Type
Axis Midcap Fund
SBI Magnum Midcap Fund
Minimum Investment Amount
₹ 100
₹ 500
SIP
₹ 100
₹ 5,000
Lumpsum
₹ 100
₹ 5,000
Analysis:
Axis Midcap Fund offers a lower entry point for SIP and lumpsum investments, making it more accessible to small investors.
SBI Magnum Midcap Fund demands a higher minimum investment, potentially targeting a more affluent investor base.
Conclusion:
In conclusion, the comparative analysis of Axis Midcap Fund and SBI Magnum Midcap Fund provides a comprehensive understanding of their performance, risk factors, and investment dynamics. While both funds showcase strengths in various aspects, SBI Magnum Midcap Fund emerges as a formidable choice for investors seeking aggressive growth, consistently outperforming Axis Midcap Fund regarding returns and fund ratings.
As maximum drawdowns and volatility metrics indicate, its higher risk aligns with the potential for significant gains. On the other hand, Axis Midcap Fund positions itself as a stable option with lower volatility, making it a perfect choice for risk-averse investors looking for a more tempered investment journey. The choice between the two ultimately hinges on individual risk appetites and investment goals, with SBI Magnum Midcap Fund catering to those with a higher risk tolerance and Axis Midcap Fund offering a steadier path for risk-averse investors.
FAQs: Decoding the Axis Midcap Fund vs. SBI Magnum Midcap Fund Analysis
Q1: What is the investment style of Axis Midcap Fund and SBI Magnum Midcap Fund?
A: Both funds adopt a growth-oriented investment style. Axis Midcap Fund capitalizes on emerging opportunities within the midcap segment, aligning with its objective of long-term capital appreciation. Similarly, SBI Magnum Midcap Fund navigates the midcap landscape, aiming for sustained growth and wealth creation.
Q2: How do the annualized returns compare between Axis Midcap Fund and SBI Magnum Midcap Fund?
A: The annualized returns for both funds vary across different years. SBI Magnum Midcap Fund consistently outperforms Axis Midcap Fund, showcasing its potential for higher returns. However, Axis Midcap Fund had particularly lucrative growth in 2017.
Q3: What are the SIP returns for Axis Midcap Fund and SBI Magnum Midcap Fund?
A: SBI Magnum Midcap Fund exhibits higher SIP returns, suggesting its potential for consistent performance over the long term. Axis Midcap Fund maintains competitive SIP returns, providing stability and growth.
Q4: How do the fund managers contribute to each fund’s strategy?
A: Shreyash Devalkar leads Axis Midcap Fund with almost seven years of experience, providing stability. On the other hand, SBI Magnum Midcap Fund, managed by Sohini Andani with over 14 years of tenure, combines stability with seasoned insights. The other managers in both funds contribute diverse perspectives.
Q5: What are the key metrics indicating the funds’ performance?
A: Key metrics include NAV, AUM, expense ratio, turnover, and benchmark. Axis Midcap Fund boasts a higher AUM despite a lower NAV, indicating strong investor trust. SBI Magnum Midcap Fund has a slightly higher expense ratio, which could impact overall returns.
Q6: How do the minimum investment amounts compare?
A: Axis Midcap Fund offers a lower entry point for SIP and lumpsum investments, making it more accessible to small investors. SBI Magnum Midcap Fund demands a higher minimum investment, potentially targeting a more affluent investor base.
Q7: How do the funds perform during market ups and downs?
A: Both funds showcase remarkable performance during their best quarters. SBI Magnum Midcap Fund demonstrates higher returns, indicating its potential to capitalize on market upswings. During challenging periods, both funds experienced downturns, with SBI Magnum Midcap Fund having a steeper decline in Q1 2020.
Q8: What risk parameters should investors consider?
A: Investors should consider mean returns, Sortino ratios, standard deviations, Sharpe ratios, betas, and alphas across 3, 5, and 10-year horizons. SBI Magnum Midcap Fund emerges as the bolder contender in risk, offering potentially higher returns with efficient risk management. Axis Midcap Fund maintains a steadier course with lower volatility and betas.
Q9: How do the funds rate on Crisil, Value Research, and Morning Star?
A: SBI Magnum Midcap Fund consistently maintains a 4-star Crisil Rank, while Axis Midcap Fund started with a lead but gradually declined. SBI Magnum Midcap Fund takes the lead with a 5-star Value Research Rating. Both funds have a Morning Star Rating of 4 stars.
Q10: What are the critical differences in portfolio breakdown between the two funds?
A: While both funds focus significantly on equity, Axis Midcap Fund slightly edges out regarding debt allocation. The cash and cash equivalents percentage show a divergence in strategy, with SBI Magnum Midcap Fund holding more liquidity. Sector-wise, Axis Midcap Fund demonstrates a diversified approach, with a notable emphasis on financials. At the same time, the SBI Magnum Midcap Fund has a more pronounced allocation in the automobile and healthcare sectors.
Q11: How many times has each fund outperformed the other?
A: Both funds have outperformed each other an equal number of times, indicating a neck-and-neck competition. SBI Magnum Midcap Fund outperformed Axis Midcap Fund more frequently, suggesting a higher consistency in delivering superior returns.
Q12: What does the Crisil Rank indicate?
A: The Crisil Rank provides insights into a fund’s relative performance within its category. SBI Magnum Midcap Fund maintains a consistent 4-star rating, indicating its overall competence.
Q13: How does the portfolio overlap between the two funds?
A: Regarding portfolio overlap, both funds maintain a moderate level, with Axis Midcap Fund at 48.11% and SBI Magnum Midcap Fund at 51.14%. Investors can use this information to diversify effectively, ensuring their investment tapestry is not overly concentrated.
Q14: What is the significance of Sortino ratios in assessing risk?
A: Sortino ratios distinguish between total and downside volatility, providing a clearer risk picture. Axis Midcap Fund and SBI Magnum Midcap Fund showcase similar Sortino ratios, emphasizing the importance of managing downside risk to protect investors against losses.
Q15: How do Sharpe ratios contribute to understanding risk and reward?
A: Sharpe ratios measure the efficiency of a fund in delivering returns relative to its risk. SBI Magnum Midcap Fund consistently exhibits higher Sharpe ratios, implying a more efficient risk-reward balance. Investors looking to balance risk and reward may find SBI Magnum Midcap Fund appealing.
Q16: What does Beta indicate about the fund’s sensitivity to market movements?
A: Beta measures a fund’s sensitivity to market movements. Both funds maintain betas of less than 1, portraying lower volatility than the market. Axis Midcap Fund generally exhibits lower betas, indicating slightly lower sensitivity to market movements than SBI Magnum Midcap Fund.
Q17: How does Alpha reflect the managerial skills of each fund?
A: Alpha measures a fund manager’s ability to create returns beyond expected based on its Beta. SBI Magnum Midcap Fund consistently showcases positive alphas, indicating superior performance relative to expected returns. In contrast, Axis Midcap Fund struggles with negative alphas, suggesting challenges in outperforming expectations.
Q18: What do the best and worst quarters reveal about fund performance?
A: The best-performing quarters showcase the funds’ potential for rapid growth. SBI Magnum Midcap Fund consistently demonstrates higher returns during these periods, indicating its potential to capitalize on market upswings. During the worst quarters, both funds experienced downturns, with SBI Magnum Midcap Fund having a steeper decline in Q1 2020, suggesting higher risk and potential for significant recovery.
Q19: How have annualized returns evolved over recent years for both funds?
A: Annualized returns provide a clear snapshot of a fund’s performance. SBI Magnum Midcap Fund consistently outperforms Axis Midcap Fund in annualized returns over the given period. Notably, both funds saw remarkable growth in 2017, with 2017 being particularly lucrative for Axis Midcap Fund.
Q20: What considerations should investors consider when analyzing Crisil, Value Research, and Morning Star ratings?
A: Crisil, Value Research, and Morning Star ratings offer valuable insights into a fund’s performance and competence. Investors should consider the consistency of ratings over time. SBI Magnum Midcap Fund consistently maintains a 4-star Crisil Rank and takes the lead with a 5-star Value Research Rating. Both funds bask in the glory of 4 stars, according to Morning Star, showcasing their prowess in the morning light of market performance.
Q21: What is the significance of maximum drawdown in assessing risk and resilience?
A: Maximum drawdown measures the most significant peak-to-trough decline. Axis Midcap Fund exhibits lower drawdowns, indicating better resilience during market downturns. SBI Magnum Midcap Fund experiences higher drawdowns, suggesting higher risk and potential for significant gains. The choice between these funds depends on an investor’s risk tolerance and preference for resilience versus potential returns.
Q22: How do investment dynamics, including NAV, AUM, and turnover, impact fund performance?
A: Investment dynamics such as NAV, AUM, expense ratio, turnover, and benchmark play crucial roles. Axis Midcap Fund boasts a higher AUM despite a lower NAV, indicating strong investor trust. SBI Magnum Midcap Fund has a slightly higher expense ratio, which could impact overall returns. Investors should consider these factors alongside their investment goals.
Q23: What insights do the fund managers’ tenures provide about each fund’s strategy?
A: Fund managers’ tenures provide insights into the stability and experience of the management team. Shreyash Devalkar leads Axis Midcap Fund with almost seven years of experience, offering stability. SBI Magnum Midcap Fund, managed by Sohini Andani, with over 14 years of tenure, combines stability with seasoned insights. The other managers in both funds contribute diverse perspectives, adding depth to the overall strategy.
Q24: How do the funds’ minimum investment amounts cater to different investors?
A: Minimum investment amounts indicate the accessibility of funds to different investor profiles. Axis Midcap Fund offers a lower entry point for SIP and lumpsum investments, making it more accessible to small investors. In contrast, SBI Magnum Midcap Fund demands a higher minimum investment, potentially targeting a more affluent investor base. Investors should choose a fund aligned with their investment capacity and financial goals.
Q25: What role does portfolio diversification play in risk management?
A: Portfolio diversification is crucial to manage risk effectively. Both funds maintain a moderate level of portfolio overlap, allowing investors to diversify their investments. Axis Midcap Fund and SBI Magnum Midcap Fund provide a balance between shared holdings and unique assets. Investors can use this information to ensure their investment tapestry is not overly concentrated in specific sectors or stocks.
Disclaimer:
This blog is solely for educational purposes. The securities/investments quoted here are not recommendatory. This is not an investment advisory. The blog is for information purposes only. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.
Past performance is not indicative of future returns. Please consider your specific investment requirements, risk tolerance, goal, time frame, risk and reward balance, and the cost associated with the investment before choosing a fund or designing a portfolio that suits your needs. The performance and returns of any investment portfolio can neither be predicted nor guaranteed.
The information provided in this article is solely the author/advertisers’ opinion and not investment advice – it is provided for educational purposes only. Using this, you agree that the information does not constitute any investment or financial instructions by Ace Equity Research and the team. Anyone wishing to invest should seek their own independent financial or professional advice. Do conduct your research along with registered financial advisors before making any investment decisions. Ace Equity Research and the team are not accountable for the investment views provided in the article.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
S.K. Singh (B.Sc., DHRM, PGDB (Manipal), Ex-Banker (10 years Exp.)), AMFI Reg. No.-251149.
At the helm of Ace Equity Research is our esteemed founder, S.K. Singh. With a solid educational background and years of experience in the field, S.K. Singh brings valuable expertise to our platform.
S.K. Singh's passion for financial markets and dedication to helping investors make informed decisions led him to establish Ace Equity Research. With a deep understanding of the intricacies of the investment landscape, he has a Commitment to Excellence and a Data-Driven Approach to Equity Research.
