SBI Magnum Tax Gain, an ELSS tax-saver mutual fund scheme introduced by SBI Mutual Funds on 31st March 1993, is specially customised for investors looking for effective medium to long-term investments. It uses the S&P BSE 500 index as its benchmark. The SBI Magnum Tax Gain scheme is estimated to be accompanied by a high risk as it is an equity-based investment plan and is, therefore, the best suited for investors with a high risk appetite. However, high risk also implies gainful returns.
Belonging to SBI Mutual Funds, that is one of the leading fund houses in India, SBI Magnum Tax Gain’s portfolio primarily comprises of shares and equity-related schemes that aim to achieve long-term capital appreciation for investor. Other than shares and equity-related schemes, a small portion of the SBI Magnum Tax Gain portfolio also invests in debt investments like money market instruments to introduce balance in the portfolio. This not only ensures liquidity, but also improves returns even during volatile capital market conditions.
The key objective of SBI Magnum Tax Gain Scheme is to offer investors the opportunity to invest in a wide range of investments like equity mutual funds that offer tax-saving benefits. Investors can avail tax benefits of up to Rs 1.5 lakh under Section 80C of the Income Tax Act, 1961. Not just that, this scheme also enables investors to receive income on the basis of distributable surplus, which is available with the SBI Magnum Tax Gain Scheme. Here’s an overview of the SBI Magnum Tax Gain:
Nature of fund: Open-ended equity linked savings scheme (ELSS).
Investment objective: The prime objective of scheme is to deliver the benefit of investment in a portfolio of equity shares, while offering deduction on such investments made in the scheme under Section 80C of the Income-tax Act, 1961. It also seeks to distribute income periodically depending on distributable surplus.
This investment scheme invests in a wide range of equities, bonds, fully convertible debentures and cumulative convertible preference shares for ensuring balance in the portfolio, ensure liquidity and generate high returns even during capital market volatility.
Fund Information The SBI Magnum Tax Gain Scheme boasts of a host of plans and schemes. While the plans are direct and regular in nature, it specialises in four types of schemes.
Fund Manager
SBI Magnum Tax Gain is currently managed by Mr. Dinesh Balachandran since September 2016. Armed with an experience of 17 years, he has an extensive experience in the field, having held the position of Senior Credit Analyst at SBI FM since the year 2012. Presently, he is the Head of Research. He began his career with Fidelity in Boston, USA, in 2001 where he was an analyst specialising in Structured Finance and local US fixed income market for over 10 years. Mr. Dinesh Balachandran holds a B.Tech. degree from IIT, Mumbai, and a M.S. degree from the Massachusetts Institute of Technology (MIT). He also holds a degree from the CFA Institute, USA. Presently, he oversees SBI Dynamic Asset Allocation Fund and SBI Contra Fund, along with the SBI Magnum Tax Gain Scheme.
There are two types of plans offered by the SBI Magnum Tax Gain scheme – Regular and Direct, while the types of schemes are Growth and Dividend.
Let’s take a closer view of the plans and schemes offered by SBI Magnum Tax Gain:
A direct plan of SBI Magnum Tax Gain Scheme enables investors to make the most of the benefit of the fund house not having to pay brokerage fees or portfolio management charges. The SBI Magnum Tax Gain Scheme offers investors the convenience of investing either online or offline. However, this benefit has not been extended to third party brokers or Asset Management Companies (AMCs). The Direct Plan is classified under two categories – Growth and Dividend.
Also referred to as the Retail Plan, this plan is available to all investors, irrespective of whether they prefer investing directly (online and offline) or through third party brokers and AMCs. As a result, additional charges in the form of brokerage fees and portfolio management charges are involved in Regular Plans, thus, raising the expense ratio. Further, the NAV of these plans are also comparatively lower than that of Direct Plans. In contrast, the Regular Plans offered by SBI Magnum Tax Gain Scheme does not involve additional charges. Regular Plans from SBI Magnum Tax Gain is also classified under two categories – Growth and Dividend.
If an investor goes for the growth, he does not receive any money during the time he remains invested in the SBI Magnum Tax Gain Scheme. The return on investments for growth schemes from SBI Magnum Tax Gain is invested again into the scheme to optimise the NAV of the scheme. The return is offered as a lump sum only after the completion of the lock-in tenure.
The profits of this option can be availed through the Dividend Payout option or the Dividend Reinvestment option, as per the preference of the investor. In contrast to the Growth option where the returns are offered only as lump sum after the lock-in period, the Dividend option is eligible for regular payouts, after a dividend has been declared by the scheme. However, this happens only when the scheme has recorded a profit. After a dividend has been declared, the NAV of the units of the scheme reduces proportionately. When the dividend is reinvested, it gets converted automatically into additional units of the SBI Magnum Tax Gain scheme and is affixed to the existing number of units available in the portfolio. When an investor opts for the Dividend Payout option, the declared dividend gets directly credited to the account that he/she has registered with SBI Mutual Fund AMC.
Here are some top investments across equities that are offered by SBI Magnum Tax Gain Fund
| Company | Sector | PE | 3Y High | 3Y Low | % Assets |
|---|---|---|---|---|---|
| ICICI Bank | Financial | 42.82 | 7.57 | 0 | 6.23 |
| ITC | Financial | 31.27 | 6.23 | 0.61 | 6.03 |
| Reliance Industries | Energy | 21.8 | 6.15 | 1.58 | 3.95 |
| Infosys | Technology | 19.58 | 7.21 | 0 | 3.95 |
| HDFC Bank | Financial | 29.54 | 8.24 | 3.27 | 3.94 |
| State Bank of India | Financial | 0 | 6.66 | 2.48 | 3.24 |
| Larsen & Toubro | Construction | 23.85 | 4.54 | 2.08 | 3.23 |
| Axis Bank | Financial | 0 | 6.03 | 1.01 | 2.7 |
| Ambuja Cements | Construction | 28.47 | 2.5 | 0 | 2.3 |
| HDFC | Financial | 22.88 | 4.3 | 1.12 | 2.15 |
*The above list is subject to changes as decided by SBI Mutual Fund AMC and SEBI guidelines.
The growth rate performance of SBI Magnum Tax Gain scheme, as recorded since its inception on 31st March, 1993:
| Last 1-Y Return % | Last 1-Y Return % | Last 1-Y Return % | Since launch on 13/03/1993 | |
|---|---|---|---|---|
| SBI Magnum Tax Gain Scheme - Reg Plan - Dividend | 7.46 | 9.99 | 19.97 | 16.23 |
| Scheme Benchmark: - S & P BSE 500 | 7.46 | 16.02 | 20.42 | 0 |
| Additional Benchmark: - S & P BSE Sensex | 23.2 | 16.02 | 20.42 | 20.42 |
The expected returns on investments of SBI Magnum Tax Gain are:
| 1-Y Return % | 3-Y Return % | 5-Y Return % | |
|---|---|---|---|
| Fund | 2.19 | 7.7 | 16.63 |
| NIFTY 500 TRI | 8.8 | 13.63 | 17.05 |
| Category | 3.94 | 11.25 | 17.05 |
| Rank within category | 22 | 27 | 22 |
| Number of funds in category | 34 | 30 | 29 |
SBI Magnum Tax Gain scheme offers investors the flexibility to choose from two investment options, as per their convenience and varied investment objectives. You may either invest in the form of a lump sum or opt for SIP (Systematic Investment Plan). The applicable lock-in period for such investments is 3 years.
If you prefer making a lump sum investment, you will have to invest a minimum amount of Rs. 500, and in case you want to make higher investments, it has to be in multiples of Rs. 1. For SBI Magnum Tax Gain ELSS fund, you may opt for a single SIP and start with a small amount of at least Rs. 500 for a minimum period of 6 weeks. Or else, you can select a monthly SIP plan and start investing with a minimum amount of Rs. 500 and continue till 12 months or more. If you decide to invest a higher amount which is more than Rs. 500, it has to be in the multiples of Re. 1. For quarterly SIP too, the minimum investment is Rs. 500 for a year, with additional investments available in multiples of Re. 1.
SBI Magnum Tax Gain scheme invests in a combination of equity and equity-related instruments, as well as debt and money market instruments. As per the guidelines issued by CBDT, the scheme has to invest 80% of the net assets in equity and equity-related instruments.
You can apply for SBI Magnum Tax Gain Scheme through these options:
Visit the SBI Mutual Fund official website and invest in the SBI Magnum Tax Gain scheme of your choice
Visit any SBI branch and submit the KYC form to be assisted through the investment process.
You can call on the Toll Free Numbers of SBI Mutual Funds for the expert customer service executives to guide you through the application procedure. The Toll Free numbers are 1800 209 3333 and 1800 425 5425. You may also get in touch with any of the SBI Investor Service Centres.
Type ‘SBIMF’ on your mobile and send it to 7065611100 for customer care executives to get back to you and help you through the investment process.
You may download the SBI Mutual Funds mobile application, called ‘m-Easy,’ from the Google Play Store and opt for online investments.
How to redeem SBI Magnum Tax Gain?
Investors can redeem their preferred number of units from their investments in SBI Magnum Tax Gain Scheme by placing a redemption request. The requested number of units or amount will be redeemed instantly. All you need to do is:
Visit the official website of SBI Mutual Fund or simple click here to access the same page and login with the necessary details
Select the fund from which you want to redeem and choose the number of units or amount
Confirm your request
Is ELSS taxable after 3 years?
After an ELSS completes its lock-in period of 3 years and reaches maturity, the return on investment is tax-free up to a prescribed limit. Presently, equity mutual funds are not exempted from long-term capital gains on staying invested for at least a year or more.
What is SBI Magnum Tax Gain Scheme?
SBI Magnum Tax Gain is an ELSS tax-saver mutual fund scheme that has been launched by SBI Mutual Funds on 31st March 1993. It is a medium to long-term investment that is accompanied by moderately high risks and is therefore, best suited for investors with a high risk appetite. It uses the S&P BSE 500 index as its benchmark. Since it involves high risk, it also ensures healthy returns. SBI Magnum Tax Gain invests 80% of the funds in equity and equity-related investments, and the rest in debt and money market instruments. There are two types of plans available – Regular and Direct, while the types of schemes are Growth and Dividend.
Can I redeem mutual fund online?
Yes, Investors can redeem their preferred number of units/amount from their investments in SBI Magnum Tax Gain Scheme by placing a redemption request online. The requested number of units/amount will be redeemed instantly. All you need to do is:
Visit the official website of SBI Mutual Fund or simple to access the same page and login with the necessary details
Select the fund from which you want to redeem and choose the number of units
Confirm your request
Which is the best SBI mutual fund scheme?
Here’s a list of the best mutual fund schemes from SBI:
SBI Banking & Financial Services Fund Direct-Growth
SBI Banking & Financial Services Fund Direct-Dividend
SBI Banking & Financial Services Fund Regular-Growth
SBI Banking & Financial Services Fund Regular-Dividend
SBI Magnum Children's Benefit Fund Direct
SBI Magnum Children's Benefit Fund
SBI ETF Nifty Next 50 Fund-Dividend
SBI Bluechip Direct Plan-Growth
SBI Bluechip Direct Plan-Dividend
What is SIP account in SBI?
Which mutual fund is best for SIP?
The following are the best mutual fund schemes for SIP investments in 2018:
ICICI Prudential Bluechip Fund
DSP Tax Saver
Franklin India Equity Fund
ICICI Prudential Value Discovery Fund
Axis Long Term Equity Fund
Reliance Tax Saver (ELSS) Fund
DSP Equity Opportunities Fund
Motilal Oswal Long Term Equity Fund
Aditya Birla Sun Life Pure Value Fund
HDFC Equity Fund
How do I start a SIP?
You can start an SIP by following these simple steps:
Complete your KYC (Know Your Customer): Become KYC complaint by filling up the necessary details in the KYC form and submit it along with Proof of Identity, Proof of Address, PAN and passport size photograph.
Select the fund: Analyse your investment objectives to decide on the fund that will be the best choice for you. Check the details about the fund like expected returns in the next few years, recorded returns in the recent past, number of years you want to stay invested for, etc. get the form of your chosen fund and fill it up with accurate personal details. Decide on your monthly investment amount: Consider your financial goals and the amount that you will be able to invest in the fund every month.
Decide on your payment date: Determine whether you would prefer making monthly or quarterly or annual instalments. You may opt for paying them manually or through post-dated cheques or auto-debit your bank. Submit your form: You have to fill up and submit the form unless you have an AMC to complete the entire SIP registration process on your behalf.
Which are the best mutual funds to invest in India?
The top 5 mutual fund investments in India in the year 2018 are:
ICICI Prudential Focused Bluechip Equity Fund
Franklin India Prima Plus Fund
ICICI Prudential Value Discovery Fund
DSP BlackRock Opportunities Fund
Axis Long Term Equity
DSP BlackRock Tax Saver
ICICI Prudential Corporate Bond Fund
Which is the best mutual fund in India?
Some of the best mutual fund investment options of 2018 are:
ICICI Prudential Focused Bluechip Equity Fund
Franklin India Prima Plus Fund
ICICI Prudential Value Discovery Fund
DSP BlackRock Opportunities Fund
Axis Long Term Equity
DSP BlackRock Tax Saver
ICICI Prudential Corporate Bond Fund
How is NAV calculated?
NAV is calculated through this formula:
Net Asset value (NAV) = (Assets – Debits) / (Number of remaining units in the portfolio)
Assets refer to the summation of the market value of mutual fund investments, accrued income and receivables. Debts can be defined as the summation of accrued expenses and liabilities.
What is SIP NAV?
NAV or Net Asset Value is the market value of each share of a fund. It is the bidding price i.e. the price that investors pay for every share bought from a fund company, or the bidding price i.e. the price at which each share is sold to a fund company. The same concept is applicable to a SIP (Systematic Investment Plan).
How do I buy SBI Magnum Tax Gain Fund plan online?
You can buy a SBI Magnum Tax Gain Fund plan online through either of these options:
Online application - Visit the official portal of SBI Mutual Fund official website and invest in the SBI Magnum Tax Gain scheme as per your preference.
Mobile application - Download the SBI Mutual Funds mobile application, named m-Easy, from the Google Play Store and avail the facilities.
How do I contact SBI Magnum Tax Gain Fund Company?
Toll Free Numbers - 1800 209 3333 and 1800 425 5425
SMS - Type ‘SBIMF’ on your mobile and send it to 7065611100
Email – customer.delight@sbimf.com
Address - 9th Floor, Crescenzo, C-38 & 39, G Block, Bandra Kurla Complex, Bandra East, Mumbai, Maharashtra - 400051
How do I login SBI Magnum Tax Gain Fund Company website?
You can access the schemes and benefits offered by SBI Magnum Tax Gain Scheme through these simple steps:
Login through any of these options:
Invest Without Login: Enter your PAN, click on the ‘I have read all the Terms & Conditions’ and then select the ‘Invest’ option
Login process for registered users: Mention your User ID and Password and then click on the ‘Login’ button
Login process for new users: Enter personal details like PAN, Email ID, contact number, password of your choice and mention the password again to verify the same.
Login through social media: Select the Facebook or Twitter or Google+ logo to allow SBI Mutual Funds to acquire your personal details that you have mentioned in your chosen social media platform and enable you to login
What is SBI Magnum Tax Gain Fund Company's Contact Number?
You can contact SBI Magnum Tax Gain Fund by calling on these toll free numbers - 1800 209 3333 and 1800 425 5425
What type of investor should invest in a small cap scheme?
Small-cap schemes typically invest in start-ups or small companies that generate small revenues currently, but show great potential for future growth. Evidently, such investments involve high risks, and therefore are best suited for investors with a high risk appetite.
Which SBI Magnum Tax Gain Fund scheme should I invest?
You can invest in any of these SBI Magnum Tax Gain Fund schemes as per your investment objectives:
SBI Magnum TaxGain Scheme 1993 Regular Growth Fund
SBI Magnum TaxGain Scheme 1993 Regular Dividend Fund
SBI Magnum TaxGain Scheme 1993 Direct Growth Fund
SBI Magnum TaxGain Scheme 1993 Direct Dividend Fund
Why should I invest in SBI Magnum Tax Gain Fund scheme?
Here are the reasons why you should invest in a SBI Magnum Tax Gain Fund scheme:
Healthy combination of investments that primarily comprise of equity and equity-related mutual funds, comprising of 80% of the folio. The rest is invested in debt and money market instruments to introduce a balance in the folio. This ensures liquidity and assures returns even during unstable economic conditions.
Makes investors eligible for tax deductions of up to Rs. 1.5 lakh under Section 80C of the Income Tax Act, 1961.
Enables investors to distribute income determined by the distributable surplus that is available with the SBI Magnum Tax Gain Scheme.
