SBI The Magnum COMMA Fund seeks to generate opportunities for growth along with possibility of consistent returns by investing in a portfolio of stocks of companies engaged in the commodity business within the following sectors:
|Oil & Gas||Metals|
Objective – The objective of the scheme would be to generate opportunities for growth along with possibility of consistent returns by investing predominantly in a portfolio of stocks of companies engaged in the commodity business within the following sectors – Oil& Gas, Metals, Materials & Agriculture and in debt & money market instruments.
The companies included in respective spaces include Petrochemicals, Power and Gas etc. under Oil and Gas sector ; Zinc, Copper, Aluminum, Bullion, and Silver etc. under Metals Sector; Paper, jute, cement etc. under Materials sector and Sugar, Edible Oil, Soya, Tea and Tobacco etc. under Agriculture sector.
The scheme could also invest in companies providing inputs to commodity manufacturing companies.
- Commodities are absolute essential for human life. With growth in population, the value of these commodity company stocks may experience significant rise.
- The Investors are likely to benefit from the potential growth in Commodity prices
Who can invest?
This scheme is suitable for investors with a longer term investment horizon and who would like to ride the rise in stocks of commodity sector.
|Instrument||Normal Allocation (% of Net Assets)||Risk Profile|
|Equity and equity related instruments of commodity based companies+||65% – 100%||High|
|Foreign Securities/ADRs/GDRs of commodity based companies ~||0% – 10%||High|
|Fixed/Floating Rate Debt instruments including derivatives||0% – 30%||Medium|
|Money Market instruments||0% – 30%||Low|
+ The scheme would at all times have an exposure of atleast 65% of its investments in stocks of companiesengaged in the commodity business. The scheme intends to take exposure only in the following four sectors – (i) Oil & Gas (Petrochemicals, Power, Gas etc.), (ii) Metals (Zinc, Copper, Aluminum, Bullion, Silver etc.), (iii) Materials (Paper, Jute, Cement etc.) (iv) Agriculture (Sugar, Edible Oil, Soya, Tea, Tobacco etc.). The scheme would also invest in companies providing inputs to commodity manufacturing companies. Exposure to derivatives instruments in the scheme can be upto a maximum of 50% of the equity portfolio of the scheme. Exposure to derivative instruments maybe through either Stock Options and Futures or Index Options or Futures. Investments in Stock Options and Futures would be limited only to the stocks within the four sectors of Oil & Gas, Metals, Materials and Agriculture.
~Investments in foreign securities/ADR/GDR would comply with the Guidelines and overall limits laid down for Mutual Funds by SEBI for investments in foreign securities. Investments in foreign securities would be only in the stocks of the following sectors – Oil& Gas, Metals, Materials and Agriculture.
|Date of Inception||24/08/2005|
|Minimum Application||Rs. 5000 and in multiples of Rs. 1000|
|Exit Load||For exit within 1 year from the date of allotment – 1 %. For exit after 1 year from the date of allotment – Nil|
|SIP||Rs.500/month – 12 months,
Rs.1000/month – 6months,
Rs.1500/quarter – 12 months
|SWP||Rs. 500 per month or quarter|