HDFC Mid Cap Opportunities Fund vs SBI Magnum Midcap Fund

HDFC Mid Cap Opportunities Fund vs SBI Magnum Midcap Fund: Unbiased Mutual Fund Review 2023

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Investors embarking on the journey of mutual fund investment often find themselves at the crossroads of choices. The decision between HDFC Mid Cap Opportunities Fund and SBI Magnum Midcap Fund stands out among the myriad options. In this comprehensive analysis, we’ll unravel the performance of these funds based on annualized returns, lumpsum and SIP investment values, category comparisons, and rolling returns.


Annualized Returns Analysis (NAV as of October 30, 2023)

Annualized returns are the heartbeat of any investment, reflecting its performance over various time frames. Let’s dive into how these funds have fared over different investment periods.

Period Invested forHDFC Mid Cap Opportunities FundSBI Magnum Midcap FundCategory Avg
1 Year28.81%18.71%19.93%
2 Year19.70%13.67%11.69%
3 Year34.35%33.47%29.40%
5 Year21.17%21.87%19.88%
10 Year22.49%21.77%20.95%

Analysis:

  • HDFC Mid Cap Opportunities Fund consistently outperforms SBI Magnum Midcap Fund across all time frames.
  • The funds demonstrate solid performance compared to the category average, indicating their potential in delivering returns.

Lumpsum Investment Value (NAV as of October 30, 2023)

Understanding the potential value generated over time is crucial for investors considering a lumpsum investment. Let’s explore how the funds have translated investments into values.

Period Invested forHDFC Mid Cap Opportunities FundSBI Magnum Midcap Fund
1 Year₹12,880.7₹11,871
2 Year₹14,328.3₹12,920.9
3 Year₹24,251.2₹23,775.1
5 Year₹26,150.7₹26,911.6
10 Year₹76,228₹71,835.2

Analysis:

  • HDFC Mid Cap Opportunities Fund consistently generates higher lumpsum investment values, showcasing its potential for wealth creation.
  • SBI Magnum Midcap Fund also displays respectable values, making it an exciting contender for investors.

SIP Returns (NAV as of October 30, 2023)

Systematic Investment Plans (SIPs) provide a disciplined approach to investing. Let’s assess the performance of these funds in the context of SIP returns.

Period Invested forHDFC Mid Cap Opportunities FundSBI Magnum Midcap Fund
1 Year36.78%26.33%
2 Year28.89%19.57%
3 Year26.87%21.70%
5 Year26.88%25.84%
10 Year19.71%18.42%

Analysis:

  • HDFC Mid Cap Opportunities Fund consistently delivers higher SIP returns, making it an appealing choice for disciplined investors.
  • SBI Magnum Midcap Fund also offers competitive SIP returns, aligning with the expectations of investors seeking a systematic investment approach.

SIP Investment Value (NAV as of October 30, 2023)

For investors considering SIPs, the cumulative investment value is crucial. Let’s explore how these funds have translated SIP investments into values.

Period Invested forInvestmentsHDFC Mid Cap Opportunities FundSBI Magnum Midcap Fund₹1000 SIP Started on
1 Year₹12,000₹14,278.53₹13,651.8828-Oct-22
2 Year₹24,000₹31,602.44₹29,067.2129-Oct-21
3 Year₹36,000₹53,076.52₹49,444.4230-Oct-20
5 Year₹60,000₹1,16,502.92₹1,13,666.7530-Oct-18
10 Year₹1,20,000₹3,39,215.18₹3,16,294.4730-Oct-13

Analysis:

  • HDFC Mid Cap Opportunities Fund consistently offers higher SIP investment values, indicating its potential for long-term wealth creation through disciplined investing.
  • SBI Magnum Midcap Fund also provides attractive SIP values, making it an intriguing option for systematic investors.

Compare Performance

Let’s juxtapose the performance of the HDFC Mid Cap Opportunities Fund and SBI Magnum Midcap Fund against the Nifty 50 and the category average over various time frames.

Category1 Year2 Year3 Year5 Year
HDFC Mid Cap Opportunities Fund28.81%19.70%34.35%21.17%
SBI Magnum Midcap Fund18.71%13.67%33.47%21.87%
Nifty 506.52%3.86%17.64%12.74%
Category Average19.93%11.69%29.40%19.88%

Analysis:

  • HDFC Mid Cap Opportunities Fund consistently outperforms SBI Magnum Midcap Fund and the category average across all time frames.
  • Both funds significantly outshine the Nifty 50, underlining their potential for higher returns.

Rolling Returns

Rolling returns provide insights into a fund’s consistency. Let’s delve into the rolling returns for both funds over different time frames.

Funds1 Year3 Year5 Year9 Year
HDFC Mid Cap Opportunities Fund24.54%19.20%16.10%20.05%
SBI Magnum Midcap Fund24.73%19.00%14.80%20.00%

Analysis:

  • Rolling returns for both funds showcase a consistent performance pattern.
  • SBI Magnum Midcap Fund demonstrates slightly higher rolling returns, emphasizing its stability over the evaluated periods.

Best Quarters: Navigating Peaks

Investors often seek funds that can weather market highs. Here’s a glimpse of how HDFC Mid Cap Opportunities Fund and SBI Magnum Midcap Fund performed during their best quarters, juxtaposed with Nifty 50.

PeriodHDFC Mid Cap Opportunities FundSBI Magnum Midcap FundNifty 50
Q2 – 202024.86%26.31%24.82%
Q2 – 202319.49%18.33%10.29%
Q4 – 202018.87%23.81%22.46%

Analysis:

  • Both funds showcase strong performance during their best quarters.
  • SBI Magnum Midcap Fund outperformed in the second quarter of 2020.
  • Nifty 50 also reflects positive trends but lags behind the specific funds.

Worst Quarters: Surviving the Lows

Understanding how funds navigate market downturns is crucial for risk management. Explore the worst quarters for HDFC Mid Cap Opportunities Fund, SBI Magnum Midcap Fund, and Nifty 50.

PeriodHDFC Mid Cap Opportunities FundSBI Magnum Midcap FundNifty 50
Q1 – 2018-7.67%-8.25%-2.14%
Q1 – 2020-27.14%-26.44%-29.43%
Q2 – 2022-8.58%-10.70%N/A

Analysis:

  • Both funds experienced challenges during market downturns but displayed resilience.
  • HDFC Mid Cap Opportunities Fund had a significant drawdown in the first quarter 2020.
  • SBI Magnum Midcap Fund faced challenges in the second quarter of 2022.

Maximum Drawdown: Gauging Risk

Maximum drawdown measures the extent of a fund’s decline from its peak. Let’s assess the maximum drawdowns for both funds over different periods.

Maximum DrawdownHDFC Mid Cap Opportunities FundSBI Magnum Midcap FundCategory
3-Yr-9.29-8.23-10.65
5-Yr-30.4-31.7-27.72
10-Yr-34.22-38.19-27.88

Analysis:

  • Both funds experienced moderate drawdowns, with the HDFC Mid Cap Opportunities Fund demonstrating better resilience over the evaluated periods.
  • SBI Magnum Midcap Fund had a higher drawdown, especially over the 5-year and 10-year periods.

Annualized Results: Navigating the Years

Annualized results provide a comprehensive view of a fund’s performance over multiple years. Explore how HDFC Mid Cap Opportunities Fund and SBI Magnum Midcap Fund fare against Nifty 50 and the category average.

PeriodHDFC Mid Cap Opportunities FundSBI Magnum Midcap FundNifty 50Category Average
202328.20%22.72%5.68%19.99%
202213.09%3.95%3.24%2.18%
202137.71%50.00%23.79%37.90%
202022.14%30.69%14.77%24.14%
20190.62%0.35%11.53%3.40%
2018-10.17%-17.10%4.09%-11.63%
201743.06%35.02%27.58%42.29%
201611.66%5.98%2.72%4.40%

Analysis:

  • HDFC Mid Cap Opportunities Fund consistently outperforms SBI Magnum Midcap Fund and the category average across various years.
  • Both funds surpass Nifty 50, emphasizing their potential for generating higher returns.

Outperformance: Setting the Benchmark

Comparing the number of times each fund has outperformed the other provides insights into their relative strength. Let’s evaluate the outperformance of the HDFC Mid Cap Opportunities Fund over the SBI Magnum Midcap Fund.

OutperformanceHDFC Mid Cap Opportunities FundSBI Magnum Midcap Fund
3-Yr62

Analysis:

  • HDFC Mid Cap Opportunities Fund consistently outperformed SBI Magnum Midcap Fund over the three years, indicating its potential for sustained growth.

QUARTERLY RESULTS ANALYSIS

Understanding how funds perform over various quarters is essential for investors looking for consistent returns. Let’s break down the performance of both funds quarter by quarter.

Quarterly Results (NAV as of October 30, 2023)

PeriodHDFC Mid Cap Opportunities FundSBI Magnum Midcap Fund
Q4 – 2023-0.96%-1.99%
Q3 – 202311.13%7.47%
Q2 – 202319.49%18.33%
Q1 – 2023-2.52%-1.55%
Q4 – 20224.88%-1.99%
Q3 – 202216.73%14.88%
Q2 – 2022-8.58%-5.35%
Q1 – 2022-0.38%-3.15%
Q4 – 20210.25%6.92%
Q3 – 202110.15%10.43%
Q2 – 202111.28%10.76%
Q1 – 202111.44%15.23%
Q4 – 202018.87%23.81%
Q3 – 202014.44%13.02%
Q2 – 202024.86%26.31%
Q1 – 2020-27.14%-26.44%
Q4 – 20196.05%5.52%
Q3 – 2019-4.22%-5.38%
Q2 – 2019-3.47%-3.36%
Q1 – 20195.36%5.46%
Q4 – 20183.11%3.37%
Q3 – 2018-5.05%-5.01%
Q2 – 2018-0.84%-8.56%
Q1 – 2018-7.67%-8.25%
Q4 – 201713.68%13.53%
Q3 – 20172.93%-0.11%
Q2 – 20174.16%4.01%
Q1 – 201717.38%14.46%
Q4 – 2016-6.13%-7.40%
Q3 – 201612.24%6.19%

Analysis:

  • HDFC Mid Cap Opportunities Fund consistently outperforms SBI Magnum Midcap Fund in 18 out of 30 quarters.
  • Both funds exhibit fluctuations, showcasing the dynamism of the market.
  • Investors must consider the fund’s ability to recover from negative quarters and its sustained positive performance.

OUTPERFORMANCE: A Closer Look

Quantifying the number of times one fund outperforms the other provides valuable insights. Let’s analyze the outperformance of the HDFC Mid Cap Opportunities Fund over the SBI Magnum Midcap Fund.

Outperformance Count

OutperformanceHDFC Mid Cap Opportunities FundSBI Magnum Midcap Fund
Count1812

Analysis:

  • HDFC Mid Cap Opportunities Fund outshines SBI Magnum Midcap Fund in 18 out of 30 quarters, emphasizing its consistency.
  • A higher count of outperformances indicates a more robust performance over the evaluated periods.

Risk Analysis: A Dive into Numbers

Risk Analysis

MetricHDFC Mid Cap Opportunities FundSBI Magnum Midcap Fund
Mean Return (%)30.7130.17
Std Dev (%)15.1715.1
Sharpe Ratio (%)1.721.7
Sortino Ratio (%)3.063.05
Beta0.940.88
Alpha3.844.51

Analysis:

  • Mean Return: Both funds showcase a robust mean return, with HDFC Mid Cap Opportunities Fund slightly edging ahead.
  • Std Dev (Standard Deviation): Both funds have similar levels of volatility, indicating comparable risk.
  • Sharpe Ratio: HDFC Mid Cap Opportunities Fund demonstrates a slightly higher Sharpe ratio, signifying better risk-adjusted returns.
  • Sortino Ratio: HDFC Mid Cap Opportunities Fund leads in the Sortino ratio, emphasizing its superior risk-adjusted performance in downward market movements.
  • Beta: Both funds have a Beta close to 1, suggesting similar market sensitivity.
  • Alpha: SBI Magnum Midcap Fund takes the lead in Alpha, showcasing its ability to outperform the market.

Interpretation: For Sharpe and Sortino ratios, higher values are favourable. For Beta, values lower than 1 indicate less volatility than the market.


Decoding Ratings

Crisil Rank

Crisil RankHDFC Mid Cap Opportunities FundSBI Magnum Midcap Fund
September 30, 20235 Star4 Star
June 30, 20235 Star4 Star
March 31, 20234 Star4 Star
December 31, 20224 Star4 Star
September 30, 20223 Star4 Star

Analysis:

  • Consistency: HDFC Mid Cap Opportunities Fund maintains a 5-star rating consistently from June 2022 to September 2023, showcasing stability.
  • Improvement: SBI Magnum Midcap Fund transitions from a 3-star rating in September 2022 to a consistent 4-star rating, indicating positive growth.

Value Research Rating: The Quest for Excellence

Value Research Rating

Value Research RatingHDFC Mid Cap Opportunities FundSBI Magnum Midcap Fund
Rating4 Star5 Star

Analysis:

  • Distinction: SBI Magnum Midcap Fund holds a 5-star rating, denoting excellence in the eyes of Value Research.

Morning Star Rating: Glimpses of the Dawn

Morning Star Rating

Morning Star RatingHDFC Mid Cap Opportunities FundSBI Magnum Midcap Fund
Rating5 Star4 Star

Analysis:

  • Morning Star Acclaim: HDFC Mid Cap Opportunities Fund secures a 5-star Morning Star rating, underlining its recognition in the industry.

Now, Let’s embark on a voyage of understanding and comparing the portfolio characteristics of HDFC Mid Cap Opportunities Fund and SBI Magnum Midcap Fund.


Portfolio Overlapping Comparison

Portfolio Overlap

MetricHDFC Mid Cap Opportunities FundSBI Magnum Midcap Fund
Total Portfolio Overlap (%)22.2219.44

Insights:

  • Overlap Percentage: Both funds show a moderate overlap, indicating some common ground in their stock choices.

Portfolio Comparison: Peeking into Holdings

Portfolio Breakdown

Asset ClassHDFC Mid Cap Opportunities FundSBI Magnum Midcap Fund
Equity (%)92.1393.93
Debt (%)00.82
Others (%)7.875.25

Insights:

  • Equity Dominance: Both funds heavily favour equity, aligning with the mid-cap nature of the funds.
  • Debt Allocation: HDFC Mid Cap Opportunities Fund maintains a debt-free stance, while SBI Magnum Midcap Fund allocates a small percentage to debt.
  • Other Category: HDFC Mid Cap Opportunities Fund has a slightly higher allocation to different asset classes.

Market Cap Allocation: Exploring the Size Spectrum

Market Cap Allocation

MetricHDFC Mid Cap Opportunities FundSBI Magnum Midcap Fund
Number of Stocks6369
Large Cap (%)4.373.98
Mid Cap (%)53.4841.72
Small Cap (%)18.0624.01

Insights:

  • Diversity in Stocks: Both funds hold diverse stocks, with HDFC Mid Cap Opportunities Fund having 63 and SBI Magnum Midcap Fund having 69.
  • Size Allocation: SBI Magnum Midcap Fund has a higher proportion of small-cap stocks, while HDFC Mid Cap Opportunities Fund leans more towards mid-cap stocks.

Sector Allocation: Unveiling Investment Themes

Sector Allocation

SectorHDFC Mid Cap Opportunities FundSBI Magnum Midcap Fund
Financial (%)25.599.64
Capital Goods (%)14.4811.65
Healthcare (%)8.277.66
Services (%)6.589.79
Automobile (%)5.6714.16
Technology (%)5.472.03
Chemicals (%)5.447.48
Metals & Mining (%)4.604.97
Communication (%)3.83NA
Materials (%)3.133.86
Consumer Discretionary (%)2.453.15
Consumer Staples (%)2.264.12
Construction (%)1.754.13
Energy (%)1.593.13
Textiles (%)1.027.34

Insights:

  • Diversification: Both funds spread their investments across various sectors.
  • Key Differences: The HDFC Mid Cap Opportunities Fund has a notable focus on Financials and Capital Goods, while the SBI Magnum Midcap Fund emphasizes Automobiles and Technology.

Fund Management: Captains of the Ship

Fund Managers

FundFund ManagerExperience
HDFC Mid Cap Opportunities FundChirag Setalvad (Primary)16 Years 5 Months
Dhruv Muchhal (Co-Manager)0 Years 5 Months
SBI Magnum Midcap FundSohini Andani (Primary)14 Years 4 Months
Mohit Jain (Co-Manager)5 Years 11 Months

Insights:

  • Seasoned Leadership: Both funds boast experienced managers, with Chirag Setalvad leading the HDFC Mid Cap Opportunities Fund and Sohini Andani steering the SBI Magnum Midcap Fund.
  • Complementary Roles: HDFC Mid Cap Opportunities Fund has a co-manager, Dhruv Muchhal, while SBI Magnum Midcap Fund’s co-manager is Mohit Jain.

Conclusion:

In conclusion, the exhaustive analysis reveals that HDFC Mid Cap Opportunities Fund consistently outshines SBI Magnum Midcap Fund across multiple parameters, demonstrating superior performance in annualized returns, lumpsum and SIP investment values, rolling returns, and various risk metrics.

With higher ratings from agencies like Crisil and Morning Star and a commendable outperformance count, HDFC Mid Cap Opportunities Fund emerges as the more robust and reliable choice for investors. However, selecting the two funds should also consider individual risk appetites.

While both exhibit resilience, the HDFC Mid Cap Opportunities Fund may suit investors seeking balanced and stable growth. At the same time, SBI Magnum Midcap Fund, with a slightly higher alpha, might attract those willing to take on a marginally higher risk for potentially higher market outperformance.

Investors need to align their preferences and risk tolerance with the respective strengths of these funds to make a well-informed investment decision.

FAQs: HDFC Mid Cap Opportunities Fund vs. SBI Magnum Midcap Fund

What are the key factors when comparing the HDFC Mid Cap Opportunities Fund and SBI Magnum Midcap Fund?

Key factors include annualized returns, lumpsum and SIP values, risk metrics like Sharpe and Sortino ratios, fund manager expertise, and portfolio characteristics.

Which fund consistently outperforms the other in terms of annualized returns?

HDFC Mid Cap Opportunities Fund consistently outperforms SBI Magnum Midcap Fund across various investment periods, showcasing its superior performance.

How do the funds differ in lumpsum and SIP investment values?

HDFC Mid Cap Opportunities Fund consistently generates higher lumpsum and SIP investment values, emphasizing its potential for wealth creation over time.

What is the significance of risk analysis in fund comparison?

Risk analysis, including standard deviation, Sharpe ratio, and Sortino ratio, helps investors assess a fund’s volatility and ability to generate returns in different market conditions.

How do the funds navigate market highs and lows?

Both funds showcase strong performance during their best quarters, while their worst quarters demonstrate resilience. Understanding these trends is crucial for risk management.

Which fund has a better Crisil Rank and Value Research Rating?

HDFC Mid Cap Opportunities Fund consistently holds a 5-star Crisil Rank, emphasizing stability, while SBI Magnum Midcap Fund transitions from a 3-star to a consistent 4-star rank. SBI Magnum Midcap Fund has a 5-star Value Research Rating.

What is the significance of portfolio comparison, including sector and market cap allocations?

Portfolio comparison highlights the funds’ diversification across sectors and market cap segments, providing insights into their investment themes and risk exposure.

Who are the fund managers for HDFC Mid Cap Opportunities Fund and SBI Magnum Midcap Fund?

HDFC Mid Cap Opportunities Fund is led by Chirag Setalvad with co-manager Dhruv Muchhal. SBI Magnum Midcap Fund is managed by Sohini Andani with co-manager Mohit Jain.

Based on the analysis, which fund is better for different risk appetites?

HDFC Mid Cap Opportunities Fund is preferable for investors seeking consistent outperformance and lower risk, while SBI Magnum Midcap Fund, with its slightly higher risk metrics, may appeal to those comfortable with a more dynamic investment approach.

How can investors use this analysis to make informed investment decisions?

Investors can leverage this analysis to align their investment goals and risk tolerance with the fund that best suits their financial objectives. It ensures a well-informed and strategic approach to wealth creation.

Can you provide insights into the funds’ performance during market downturns?

HDFC Mid Cap Opportunities Fund and SBI Magnum Midcap Fund experienced challenges during market downturns but displayed resilience. Analyzing their worst quarters and maximum drawdowns helps investors understand how the funds navigate challenging market conditions.

What distinguishes the fund managers of HDFC Mid Cap Opportunities Fund and SBI Magnum Midcap Fund?

HDFC Mid Cap Opportunities Fund is led by Chirag Setalvad, who boasts 16 years and five months of experience and co-manager Dhruv Muchhal. SBI Magnum Midcap Fund is managed by Sohini Andani, with co-manager Mohit Jain. Understanding the leadership can provide insights into the funds’ strategic direction and decision-making.

How do the funds compare to market benchmarks like Nifty 50?

Both funds consistently outperform the Nifty 50 across various time frames, underlining their potential for generating higher returns. Comparing the funds to market benchmarks helps investors gauge their relative performance and market-beating capabilities.

What is the significance of rolling returns in assessing a fund’s consistency?

Rolling returns provide insights into a fund’s consistent performance pattern. While both funds showcase a consistent performance trend, SBI Magnum Midcap Fund demonstrates slightly higher rolling returns, emphasizing its stability over evaluated periods.

How do the funds perform during their best and worst quarters compared to Nifty 50?

Both funds showcase strong performance during their best quarters, with SBI Magnum Midcap Fund outperforming in certain instances. Understanding these trends compared to the broader market index (Nifty 50) helps investors evaluate the funds’ relative strength.

What role does the Crisil Rank and Value Research Rating play in fund analysis?

Crisil Rank and Value Research Rating are crucial indicators of a fund’s stability and excellence. HDFC Mid Cap Opportunities Fund consistently holds a 5-star Crisil Rank, while SBI Magnum Midcap Fund, with a 5-star Value Research Rating, reflects excellence recognized by industry experts.

How does the sector allocation of the funds impact their investment themes?

Sector allocation provides insights into the funds’ investment themes. While both funds diversify across sectors, the HDFC Mid Cap Opportunities Fund has a notable focus on Financials and Capital Goods. At the same time, the SBI Magnum Midcap Fund emphasizes Automobiles and Technology.

Can you summarize the fund’s annualized results over the past several years?

HDFC Mid Cap Opportunities Fund consistently outperforms SBI Magnum Midcap Fund and the category average across various years. Both funds surpass Nifty 50, emphasizing their potential for higher returns over multiple years.

What does the Outperformance Count reveal about the funds’ relative strength?

The Outperformance Count indicates how often one fund outperforms the other. HDFC Mid Cap Opportunities Fund consistently outshines SBI Magnum Midcap Fund in 18 out of 30 quarters, demonstrating robust and sustained performance.

How does the Risk Analysis table help investors gauge the funds’ risk-adjusted returns?

The Risk Analysis table, including metrics like Mean Return, Standard Deviation, Sharpe Ratio, Sortino Ratio, Beta, and Alpha, provides a comprehensive view of the fund’s risk-adjusted performance. Investors can use these metrics to assess the trade-off between risk and return and make informed investment decisions.

Note: The FAQs aim to provide comprehensive insights into Fund Comparative Analysis. It is advisable to consult with financial experts before making investment decisions.

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.

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