Should In invest in SBI Magnum Balanced Fund

While selecting a mutual fund, the common trend is to look at the trailing returns of the fund https://www.advisorkhoj.com/mutual-funds... However this is not the right method while selecting a fund.

At Advisorkhoj, we suggest our readers to look at rolling return of the fund to check how the fund performed vis-a-vis the benchmark returns over a period of time.

why look at the rolling return - "Rolling returns are the annualized returns of the scheme taken for a specified period (rolling returns period) on every day/week/month and taken till the last day of the duration. In this chart we are showing the annualized returns over the rolling returns period on every day from the start date and comparing it with the benchmark. Rolling returns is the best measure of a fund's performance. Trailing returns have a recency bias and point to point returns are specific to the period in consideration. Rolling returns, on the other hand, measures the fund's absolute and relative performance across all timescales, without bias"

The rolling returns of SBI Magnum Balanced Fund has been very impressive as you can see in the chart here https://www.advisorkhoj.com/mutual-funds... As you can see, in the last 5 years the rolling return of this fund was much higher than that of the balanced fund category returns, during the entire period.

The other aspect that you can look at is the expense ratio of the fund - the expense ratio of SBI Magnum Balanced Fund is only 1.98% which is probably the lowest / or one of the lowest in the entire balance fund category.

Even if you consider the trailing returns of 5 years, SBI Mangum Balanced is amongst the top 3 funds with 18.23% annualised returns.

The above factors - impressive rolling returns, low expense ratio and high trailing returns - makes a compelling reason for the investors to invest in this fund.

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