The State Bank of India is the premier bank of the country. It can be referred to as the backbone of the Indian economy. Earlier the main function of banks in our country was to open accounts and provide loans to people who need them. However, times are changing. Banks today have ventured a lot beyond there known area of operation. Mutual funds today are a sector, which banks are entering slowly. Now since SBI is the largest bank in the country it becomes mandatory for it to show other banks the way forward.
The stock markets here in India have given phenomenal returns since economic reforms were introduced two decades back. However, it is indeed a volatile place, which many people are not at all comfortable with. Thus, investment in mutual funds, which are operated under the eyes of an experienced are a preferred route for many an individual who are not at all comfortable with volatility. Therefore, if you do want to invest in mutual funds you can visit any branch of the State Bank of India.
The SBI magnum mutual funds, which are operated by the bank, can be classified mainly into three categories. They can be referred to as equity based funds, debt based, and balanced fund. Let us now discuss the details of the individual funds.
The first type of fund can be called as the equity-based SBI Magnum fund. These funds have direct exposure to the stock markets. Now to invest in stocks you need to know to read balance sheets, and know a bit about the company’s history. Here an experienced fund manager will be operating your money.
Thus, your money will be comparatively safer. Here again you can further divide this category into diversified equity funds, sectoral equity funds, and index based funds. In the diversified equity funds, investments are diversified into shares of various sectors. Now for the sectoral equity funds investments are mainly made in the shares of a particular sector. Hence, the risks increase. Now for the magnum index based funds here the investment is restricted to stocks of a particular index. It also has its risks involved.
The second type of fund can be referred to as the debt based Sbi magnum mutual funds. These investments are for people who are weak hearted. These funds completely avoid the equity markets. Most of the investments of these funds are restricted to corporate bonds, money market instruments and government securities. Investments if any in the stock markets are limited. SBI Magnum funds, which falls under this category, are Children’s benefit fund, Magnum gilt fund, Magnum income fund. The return though muted is better than bank fixed deposits.
Next, we have the balanced SBI Magnum mutual funds. Funds under this category have exposures to government bonds, money markets as well as the equity markets. Funds, which operate under this category, are Magnum balanced fund, Magnum NRI investment fund flexi asset plan. These funds have a mixture of both and hence are the ideal funds to park your money.