``With the open-end funds from SBI Mutual Fund delivering decent returns, investors should opt to shift their investments to these funds rather than keeping their money idle in bank deposits or using it for unproductive purposes,'' said an analyst.

For the one year period ended March 31, 1999, the two equity funds from SBI Mutual Fund - Magnum Multiplier and Magnum Multiplier Plus - have generated returns of 50 per cent and 38.27 per cent, respectively. The open-end balanced fund, SBI Magnum Open-end, has given a return of 38.6 per cent during the same period.

Magnum Triple has a investor base of 1.65 lakh with a unit capital of Rs 185 crore. Based on the current NAV, the gap works out to Rs 70 per unit or Rs 130crore. Any reinvestment of redemption proceeds in the open-end funds of SBI Mutual Fund will help the AMC retain a portion of the total outflow.

``If the AMC attracts even a quarter of the total redemption proceeds of Rs 555 crore, it will translate into an inflow of around Rs 140 crore to other funds,'' said an analyst. Launched in September, 1991, Magnum Triple Plus had assured a return of three times or more on initial investment at the end of the 90th month. The Magnum Triple units have a face value of Rs 100.

Magnum Triple Plus has aggressively churned its portfolio and the net asset value has moved up by 18.5 per cent from Rs 195 on January 1, 1999 to Rs 231 on April 16. The NAV had touched an time-high of Rs 239 on April 2 but has dropped to current levels after the market was hit by political turbulence at the Centre.

Analysts expect the NAV to hold on to the current levels and even appreciate as the market receives more FII inflows and faint signs of an economic recovery appear on thehorizon. ``The market has discounted mid-term polls and we may see a minor downturn in prices, if any, if the elections are held towards September. Market participants are now expected to look at fundamentals and pick up stocks aggressively since the valuations are attractive. The sentiment is likely to be aided further by higher FII allocations. In fact, we may see the NAV of the fund moving up and consequently the gap narrowing,'' said an analyst.