Table of Contents
DSP BlackRock tax saver Fund and SBI Magnum Tax Gain Fund are ELSS schemes offered by different fund houses. These schemes are Tax Saving Mutual Fund through which individuals can claim dual benefits of both Investing as well as tax savings. These schemes invest a predominant stake of their corpus in equity and equity-related instruments. In addition, people can claim tax deductions under Section 80C of income tax Act, 1961. Though both the schemes belong to the same category, yet; there are differences between based on various parameters such as AUM, performance, and so on. So, let us understand the differences between DSP BlackRock Tax Saver Fund and SBI Magnum Tax Gain Fund through this article.
DSP BlackRock Tax Saver Fund is an open-ended tax savings scheme and is present since 2007. This scheme is managed by DSP BlackRock Mutual Fund whose investment objective is to earn long-term Capital growth along with tax deductions. The scheme tries to attain this long-term growth by investing in a diversified portfolio whose substantial proportion consists of equity and equity-related instruments. DSP BlackRock Tax Saver Fund uses Nifty 500 Index as its benchmark to construct its portfolio. Mr. Rahul Singhania is the fund manager managing DSP BlackRock Mutual Fund. As on January 31, 2018, the Top 5 stocks as per holdings that form part of the scheme’s portfolio include HDFC Bank Limited, ICICI Bank Limited, Tata Steel Limited, and Larsen & Toubro Limited.
SBI Magnum Tax Gain Fund is a part of SBI Mutual Fund and was incepted on March 31, 1993. This scheme is an open-ended Tax Saving Scheme whose investment objective is to deliver the investment benefits to in a portfolio of equity shares along with Offering benefits of a tax Deduction. The Fund Manager Managing SBI Magnum Tax Gain is Mr. Dinesh Balachandran. The scheme uses S&P BSE 100 Index as its benchmark to construct its portfolio. SBI Magnum Tax Gain is suitable for investors who are looking for the dual advantage of saving Taxes along with long-term capital growth by gaining exposure in equity markets. As on January 31, 2018, some of the shares that were part of SBI Magnum Tax Gain’s portfolio are Reliance Industries Limited, Mahindra & Mahindra Limited, State Bank of India, ITC Limited, and Bharti Airtel Limited.
Though both the schemes belong to the same category of ELSS yet; there is are differences between both of the schemes. So, let’s have a brief look at the various comparable parameters between both the schemes that are divided into four sections, namely, Basics Section, Performance Section, Yearly Performance Section, and Other Details Section.
Some of the elements that form part of Basics Section include Scheme Category, Fincash Ratings, and Current NAV. With respect to the Scheme Category, it can be said that both the schemes belong to the same category, that is, Equity ELSS. The next category to be compared is Fincash Rating. As per the ratings, it can be said that DSP BlackRock Tax Saver Fund is a 4-Star Fund and SBI Magnum Tax Gain Fund is a 2-Star Fund.. While comparing the Current NAV, it can be said that, SBI Magnum Tax Gain Fund leads the race. As on February 22, 2018, the NAV of SBI Magnum Tax Gain was approximately INR 141 while of DSP BlackRock Tax Saver Fund was approximately INR 45. The comparison summary of various elements of the basics section is tabulated as follows.
Parameters Basics NAV Net Assets (Cr) Launch Date Rating Category Sub Cat. Category Rank Risk Expense Ratio Sharpe Ratio Information Ratio Alpha Ratio Benchmark Exit Load DSP BlackRock Tax Saver Fund
Growth
Fund Details ₹75.217 ↑ 1.60 (2.17 %) ₹9,872 on 31 Mar 22 18 Jan 07 ☆☆☆☆ Equity ELSS 12 Moderately High 1.87 1.46 0.37 1.56 Not Available NIL SBI Magnum Tax Gain Fund
Growth
Fund Details ₹206.463 ↑ 4.00 (1.97 %) ₹10,602 on 31 Mar 22 7 May 07 ☆☆ Equity ELSS 31 Moderately High 2.22 1.29 -0.58 -0.98 Not Available NIL
The Performance section compares the Compounded Annual Growth Rate or CAGR returns between both the schemes. These returns are compared at different time intervals such as 3 Month Return, 6 Month Return, 3 Year Return, and 5 Year Return. The overall performance of both the schemes shows that there is not much difference between the returns generated by both the schemes. At certain time periods the returns generated by DSP BlackRock Tax Saver Fund are higher than SBI Magnum Tax Gain Fund and vice versa. The summary of performance section is tabulated as follows.
Parameters Performance 1 Month 3 Month 6 Month 1 Year 3 Year 5 Year Since launch DSP BlackRock Tax Saver Fund
Growth
Fund Details -8% -5.7% -9.7% 9.5% 17.3% 11.8% 14.1% SBI Magnum Tax Gain Fund
Growth
Fund Details -7.6% -5.4% -11.4% 10% 14.5% 9.3% 10.6%
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The Yearly Performance Section compares the absolute returns generated by both the schemes generated by both the schemes in a particular year. In yearly performance section, the returns of DSP BlackRock Tax Saver Fund are higher than that of SBI Magnum Tax Gain Fund. The summary of yearly performance section is tabulated as follows.
Parameters Yearly Performance 2021 2020 2019 2018 2017 DSP BlackRock Tax Saver Fund
Growth
Fund Details 35.1% 15% 14.8% -7.6% 36.3% SBI Magnum Tax Gain Fund
Growth
Fund Details 31% 18.9% 4% -8.3% 33%
This is the last section in the comparison of both the funds. In this section, the various parameters compared are Minimum SIP and Lumpsum Investment, AUM, and Exit Load. Comparison of Minimum SIP and Lumpsum Investment shows that the amount in case of both SIP and Lumpsum investment are the same which is INR 500. Similarly, in case of Exit Load, both the schemes do not have any Capital Gain attached to it as they are ELSS schemes and have a lock-in period of three years. In case of AUM, SBI Magnum Tax Gain leads the race. As on January 31, 2018, the AUM of DSP BlackRock Tax Saver Fund is approximately INR 3,983 crores and of SBI Magnum Tax Gain Fund is approximately INR 6,663 crores*. The table given below summarizes the various comparable parameters forming part of other details section.
Parameters Other Details Min SIP Investment Min Investment Fund Manager DSP BlackRock Tax Saver Fund
Growth
Fund Details ₹500 ₹500 Rohit Singhania - 6.79 Yr. SBI Magnum Tax Gain Fund
Growth
Fund Details ₹500 ₹500 Dinesh Balachandran - 5.64 Yr.
DSP BlackRock Tax Saver Fund
Growth
Fund Details Growth of 10,000 investment over the years.
Date Value 30 Apr 17 ₹10,000 30 Apr 18 ₹11,129 30 Apr 19 ₹11,431 30 Apr 20 ₹9,964 30 Apr 21 ₹15,689 30 Apr 22 ₹18,697 SBI Magnum Tax Gain Fund
Growth
Fund Details Growth of 10,000 investment over the years.
Date Value 30 Apr 17 ₹10,000 30 Apr 18 ₹11,164 30 Apr 19 ₹11,154 30 Apr 20 ₹9,300 30 Apr 21 ₹14,164 30 Apr 22 ₹16,872
DSP BlackRock Tax Saver Fund
Growth
Fund Details Asset Allocation
Asset Class Value Cash 1.16% Equity 98.84% Equity Sector Allocation
Sector Value Financial Services 36.83% Consumer Cyclical 10.69% Basic Materials 10.41% Technology 10.32% Industrials 8.58% Health Care 7.72% Utility 5.83% Communication Services 3.11% Energy 2.68% Consumer Defensive 2.67% Top Securities Holdings / Portfolio
Name Holding Value Quantity ICICI Bank Ltd (Financial Services)
Equity, Since 31 Oct 16 | ICICIBANK9% ₹915 Cr 12,314,497
↑ 136,012 HDFC Bank Ltd (Financial Services)
Equity, Since 31 Jul 08 | HDFCBANK8% ₹756 Cr 5,456,452
↑ 564,039 Infosys Ltd (Technology)
Equity, Since 31 Mar 12 | INFY7% ₹709 Cr 4,522,740
↑ 126,850 Axis Bank Ltd (Financial Services)
Equity, Since 30 Nov 18 | AXISBANK7% ₹640 Cr 8,783,608
↑ 127,811 State Bank of India (Financial Services)
Equity, Since 30 Jun 20 | SBIN5% ₹504 Cr 10,158,698
↑ 687,305 SBI Life Insurance Company Limited (Financial Services)
Equity, Since 30 Jun 20 | SBILIFE3% ₹273 Cr 2,468,846 NTPC Ltd (Utilities)
Equity, Since 31 Jan 19 | NTPC3% ₹272 Cr 17,387,006
↑ 1,705,727 Bharti Airtel Ltd (Communication Services)
Equity, Since 31 Jul 19 | BHARTIARTL3% ₹260 Cr 3,522,557 Sun Pharmaceuticals Industries Ltd (Healthcare)
Equity, Since 30 Apr 20 | SUNPHARMA3% ₹259 Cr 2,786,716
↑ 164,235 HCL Technologies Ltd (Technology)
Equity, Since 31 Mar 21 | HCLTECH2% ₹238 Cr 2,204,994 SBI Magnum Tax Gain Fund
Growth
Fund Details Asset Allocation
Asset Class Value Cash 5.66% Equity 94.34% Equity Sector Allocation
Sector Value Top Securities Holdings / Portfolio
Name Holding Value Quantity ICICI Bank Ltd (Financial Services)
Equity, Since 31 Jan 17 | ICICIBANK5% ₹551 Cr 7,416,237 Reliance Industries Ltd (Energy)
Equity, Since 30 Apr 06 | RELIANCE5% ₹513 Cr 1,837,574 Larsen & Toubro Ltd (Industrials)
Equity, Since 28 Feb 07 | LT4% ₹418 Cr 2,468,968 Infosys Ltd (Technology)
Equity, Since 31 Mar 18 | INFY4% ₹397 Cr 2,531,001 State Bank of India (Financial Services)
Equity, Since 31 May 06 | SBIN4% ₹381 Cr 7,685,639 ICICI Prudential Life Insurance Company Limited (Financial Services)
Equity, Since 30 Sep 16 | ICICIPRULI3% ₹363 Cr 6,904,842 Tech Mahindra Ltd (Technology)
Equity, Since 31 Jan 17 | TECHM3% ₹335 Cr 2,660,741 Cipla Ltd (Healthcare)
Equity, Since 31 Jul 18 | CIPLA3% ₹334 Cr 3,403,528 Cummins India Ltd (Industrials)
Equity, Since 28 Feb 19 | CUMMINSIND3% ₹318 Cr 3,088,066 Mahindra & Mahindra Ltd (Consumer Cyclical)
Equity, Since 31 Dec 16 | M&M3% ₹315 Cr 3,415,083
Thus, from the above-mentioned pointers, it can be said that though both the schemes are a part of the same category yet; there are differences between them with respect to various parameters. Therefore, individuals should be careful before choosing any scheme to invest by understanding its parameters completely. They should also analyze and check whether the schemes suit their investment preferences or not. If required, individuals can even consult a financial advisor. This will help them to ensure that their objectives are met in time along with their investment being safe.