Should you invest in SBI Multicap Fund New Fund Offer?

During the NFO period, a very common connotation raised by many investors is “I will invest when NAV will go below Rs 10”. Which he never knows when it will happen. And lose the opportunity to invest even at Rs 10.

Many people remain confused about whether they should invest at Rs 10 NAV during the NFO period or wait for NAV to get lowered and then invest. My view is quite different here. Below is a chart that can make it clear that those who had invested in the NFO period at Rs 10 NAV, have already made money. You can see the NAV performance since they were launched.

Name of Scheme Launch Date Start NAV Current NAV as of 11th Feb 22 CAGR* return since launched Invested Amount Units Purchased At Launch Date Current Value as of 11TH Feb 22
SBI Small Cap Fund 09-09-2009 10 103.57 20.72% 100000 10000 1035700
SBI Flexi Cap Fund 29-09-2005 10 76.22 13.24% 100000 10000 762200
SBI Focused Equity Fund 11-10-2004 10 237.72 19.15% 100000 10000 2377200
SBI Magnum Global Fund 30-09-1994 10 277.56 12.93% 100000 10000 2775600
SBI Magnum Equity Hybrid Fund 31-12-1995 10 202.11 11.74% 100000 10000 2021100
SBI Bluechip Fund 14-02-2006 10 60.3 11.95% 100000 10000 603000

*CAGR- Compounded Annualised Growth Rate

It can be observed from the above chart that every scheme, since its launch at Rs 10 NAV has been able to give better returns in due course of time. Like SBI Small Cap fund when launched at Rs 10 NAV has a NAV of Rs 103.57 as of 11th Feb,22 giving a compounded annualized growth rate of 20.72%. And if someone invested Rs 100000.00 at its launch has a current value of Rs 1035700.00.

In the last column of the chart, you can see the current value of Rs 100000.00 invested at inception.

NAV MovementOf course, there might have been so many fluctuations in the NAV in these years which can be observed in the below-mentioned NAV performance graph. Another observation that can be depicted here is Longer the period you remain invested, the more returns you will makeirrespective of NAV fluctuations in the initial days or months. Then it becomes quite immaterial what fluctuations it has had in its NAV.

A very important lesson learned here is Correction is temporary and Growth is permanent. NAV corrected many times whenever there was a fall in markets, but again it got its sheen back as markets moved further.

SBI Multi-Cap Fund has been launched on the 14th of February 22. NFO is closing on 28th February 2022. It is an opportunity for investors who want to unbiasedly invest in all market cap categories. This fund will be managed by Mr. R Srinivasan, a seasoned Fund Manager, with experience of more than 28 years of in the Indian Mutual Fund Industry.

With his able fund management, many investors have been able to create wealth over time, many have been able to achieve their financial goals.

SBI Multi-Cap Fund has been launched on the 14th of February 22. NFO is closing on 28th February 2022.  It is an opportunity for investors who want to unbiasedly invest in all market cap categories. This fund will be managed by Mr. R Srinivasan, a seasoned Fund Manager, with experience of more than 28 years of in the Indian Mutual Fund Industry.

With his able fund management, many investors have been able to create wealth over time, many have been able to achieve their financial goals.

 

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