SBI Multicap Fund NAV: An In-Depth Analysis

SBI Multicap Fund, One of the most well-liked investment alternatives in India is mutual fund investing because it might be a little bit challenging to select the best mutual fund given the sheer number of possibilities available. One such mutual fund is the SBI Multicap Fund, which is known for its flexibility and diversification. In this article, we will take a closer look at SBI Multicap Fund and understand how its NAV plays an important role in mutual fund investing.

What is SBI Multicap Fund?

SBI Multicap Fund is an open-ended equity mutual fund scheme launched in September 2005, SBI Multicap Fund is managed by SBI Funds Management which is one of the best asset management Company in India. The Major investment objective of this Multicap Fund is to provide you a long-term capital growth by investing in a diversified portfolio of equity or equity-related securities across market capitalizations and sectors.

Understanding NAV

Net Asset Value (NAV) is the price or at which a mutual fund unit is sold or bought and It is computed by dividing the aggregate value of the managed assets,  the number of outstanding shares held by investors, net asset value can either indicate the value of the total equity or the net asset value per share. NAV plays a crucial role in mutual fund investing as it reflects the fund's performance and helps investors in deciding when to buy or sell the units.

SBI Multicap Fund NAV

The NAV of SBI Multicap Fund changes daily based on the market movements and the performance of the underlying assets. As of March 2023, the NAV of SBI Multicap Fund is around INR 200.

 Over time, the fund has performed well and has given investors reliable returns and the fund's returns over 1, 3, and 5 years are 35%, 20%, and 18%, respectively.

Asset Allocation of SBI Multicap Fund

SBI Multicap Fund follows a Multicap strategy, which means that it invests in companies across different market capitalizations, it is depending on the state of the market, and the fund can choose to invest in large-, mid-, and small-cap firms,  As of February 2023, the asset allocation of the fund is as follows:

1. Large Cap - 55.8%
2. Mid Cap - 22.5%
3. Small Cap - 8.2%
4. Cash and Other Assets - 13.5%

Portfolio Holdings of SBI Multicap Fund

The portfolio holdings of SBI Multicap Fund are well-diversified across different sectors. The top 5 industries in which the SBI Multicap Fund is heavily invested as of March 2023 are financials, consumer discretionary, industrials, healthcare, and energy and the stocks in which the fund is invested are they are HDFC Bank, ICICI Bank, Infosys, Reliance Industries, and Kotak Mahindra Bank.

Pros and Cons of Investing in SBI Multicap Fund

Like any mutual fund, SBI Multicap Fund has its pros and cons. Let's take a look at them

Pros

1. Diversification: SBI Multicap Fund invests in companies across different market capitalizations and sectors, providing investors with diversification benefits.

2. Flexibility: Depending on the state of the market, the fund has greater freedom to invest in large and mid-Cap, and small-cap stocks.

3. Professional Management: The fund is managed by experienced professionals who have a track record of delivering consistent returns to investors.

Cons

1. Market Risk: SBI Multicap Fund is an equity mutual fund, and hence it is subject to market risks. The NAV of the fund can fluctuate based on the performance of the underlying assets.

2. Fees and Expenses: The fund charges a management fee and other expenses, which can affect the returns.

Should You Invest in SBI Multicap Fund?

SBI Multicap Fund, Investing in Multicap Fund will be a good option for you because the fund has a long history of providing consistent returns to investors and it is managed by experienced professionals.

However, you should also consider the market risks associated with the equity and the mutual fund's fees which are expenses charged by the fund. It is important to do your own research and consult with the best financial advisor before making any investment decisions in the SBI Multicap Fund.

Conclusion

SBI Multicap Fund is a well-diversified equity mutual fund that provides investors with flexibility and professional management. Its NAV plays a crucial role in mutual fund investing, reflecting the fund's performance, and helping investors in making informed investment decisions. However, you should also consider the market risks and the fees associated with the fund before making any investment decisions in Multicap Fund.