Table of Contents
L&T Tax Advantage Fund Vs SBI Magnum Tax Gain Fund
L&T Tax Advantage Fund and SBI Magnum Tax Gain Fund both the schemes differ on a number of parameters. These differences exist, even though both the schemes are a part of the same category, that is, Equity ELSS. Equity Linked Savings Scheme (ELSS) are also known as tax saving Mutual Fund. These schemes offer individuals dual benefits of investing and tax deductions. Individuals Investing in ELSS schemes can claim a tax Deduction of up to INR 1,50,000 under Section 80C of income tax Act, 1961. However, these schemes have a lock-in period of three years which again is the shortest as compared to the other tax saving avenues. Though there are a number of schemes offered under one category, nevertheless; there are differences between them. So, let’s understand the differences between L&T Tax Advantage Fund and SBI Magnum Tax Gain Fund.
L&T Tax Advantage Fund
L&T Tax Advantage Fund’s investment objective is to attain long-term Capital appreciation from a portfolio predominantly consisting of equity and equity-related securities. This open-ended tax savings Mutual Fund scheme was incepted on February 27, 2006. L&T Tax Advantage Fund uses S&P BSE 200 TRI Index as its benchmark index and is managed solely by Mr. S. N. Lahiri. In normal situations, L&T Tax Advantage Fund invests around 95% of its accumulated pooled money in equity and equity-related instruments and the remaining in money market instruments. As on March 31, 2018, HDFC Bank Limited, IndusInd Bank Limited, Larsen & Toubro Limited, and Godrej Properties Limited were some of the holdings of L&T Tax Advantage Fund’s portfolio. Greater diversification for risk control and 360-degree research are some of the benefits of L&T Tax Advantage Fund.
SBI Magnum Tax Gain Fund
SBI Magnum Tax Gain Fund is an apt choice for investors seeking dual advantage of tax savings along with exposure in the equity markets. This scheme of SBI Mutual Fund aims to deliver investment benefits to its investors along with offering tax deductions. The scheme uses S&P BSE 100 Index as its benchmark to construct its basket of assets. Mr. Dinesh Balachandran is the fund manager managing SBI Magnum Tax Gain Fund. Based on the Asset Allocation objective, SBI Magnum Tax Gain Fund invests around 80-100% of its fund money in equity and equity-related instruments while the remaining portion in money market instruments. ICICI Bank Limited, Reliance Industries Limited, and Rural Electrification Corporation Limited are some of the holdings of SBI Magnum Tax Gain Fund’s portfolio as on March 31, 2018.
L&T Tax Advantage Fund Vs SBI Magnum Tax Gain Fund
L&T Tax Advantage Fund and SBI Magnum Tax Gain Fund both the schemes differ on a number of parameters. So, let us understand the differences between both the schemes by comparing these parameters that are classified into four sections, namely, basics section, performance section, yearly performance section, and other details section.
Basics Section
It is the first section in the comparison of the schemes. The parameters of the basics section include scheme category, Fincash Rating, and Current NAV. With respect to scheme category, it can be said that both the schemes are a part of Equity ELSS category. The comparison of Fincash Rating states that L&T Tax Advantage Fund is a 4-Star rated scheme and SBI Magnum Tax Gain Fund is a 2-Star rated scheme. The comparison of NAV also states that both the schemes differ significantly. As on May 02, 2018, the NAV of L&T Tax Advantage Fund was approximately INR 57 and of SBI Magnum Tax Gain Fund was around 142. The summary of this 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 L&T Tax Advantage Fund
Growth
Fund Details ₹79.195 ↓ -0.37 (-0.47 %) ₹3,529 on 31 Oct 21 27 Feb 06 ☆☆☆☆ Equity ELSS 7 Moderately High 2.03 2.83 -1.36 1.16 Not Available NIL SBI Magnum Tax Gain Fund
Growth
Fund Details ₹221.315 ↓ -1.39 (-0.63 %) ₹11,094 on 31 Oct 21 7 May 07 ☆☆ Equity ELSS 31 Moderately High 2.22 3.95 -0.44 10.76 Not Available NIL
Performance Section
Being the second section in the comparison, the parameter forming part of this section is CAGR or Compounded Annual Growth Rate returns. The comparison of performance section states that in most of the instances, L&T Tax Advantage Fund has performed better as compared to L&T Tax Advantage Fund. The table given below summarizes the comparison of the performance section.
Parameters Performance 1 Month 3 Month 6 Month 1 Year 3 Year 5 Year Since launch L&T Tax Advantage Fund
Growth
Fund Details -1.3% -0.4% 9.9% 32% 14.1% 14.4% 14% SBI Magnum Tax Gain Fund
Growth
Fund Details -3.6% 1.6% 11.4% 37.5% 17.5% 14.5% 11.5%
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Yearly Performance Section
The comparison of absolute returns generated by both the schemes for a particular year is done in this section. Analysis of absolute returns reveals that in certain years, L&T Tax Advantage Fund leads the race. On the other hand, in certain years, SBI Magnum Tax Gain Fund leads the race. The summary comparison of the yearly performance section is tabulated as follows.
Parameters Yearly Performance 2020 2019 2018 2017 2016 L&T Tax Advantage Fund
Growth
Fund Details 13.5% 4.6% -8.1% 42.3% 8.1% SBI Magnum Tax Gain Fund
Growth
Fund Details 18.9% 4% -8.3% 33% 2.1%
Other Details Section
It is the last section in the comparison of the schemes. It includes parameters such as AUM, minimum SIP and lumpsum investment, and exit load. The minimum SIP and lumpsum investment for both the schemes are same, that is, INR 500. However, both the schemes differ considerably on account of AUM. The AUM of SBI Magnum Tax Gain Fund was around INR 6,067 Crores while of L&T Tax Advantage Fund was approximately INR 3,016 Crores as of March 31, 2018. In addition, both the schemes do not have any exit load as they belong to the category of equity ELSS. The comparison summary of this section is as shown in the table given below.
Parameters Other Details Min SIP Investment Min Investment Fund Manager L&T Tax Advantage Fund
Growth
Fund Details ₹500 ₹500 Vihang Naik - 1.88 Yr. SBI Magnum Tax Gain Fund
Growth
Fund Details ₹500 ₹500 Dinesh Balachandran - 5.14 Yr.
Growth of 10k Investments over the years
L&T Tax Advantage Fund
Growth
Fund Details Growth of 10,000 investment over the years.
Date Value 30 Nov 16 ₹10,000 30 Nov 17 ₹13,433 30 Nov 18 ₹12,968 30 Nov 19 ₹13,380 30 Nov 20 ₹14,414 30 Nov 21 ₹19,021 SBI Magnum Tax Gain Fund
Growth
Fund Details Growth of 10,000 investment over the years.
Date Value 30 Nov 16 ₹10,000 30 Nov 17 ₹12,581 30 Nov 18 ₹11,864 30 Nov 19 ₹12,522 30 Nov 20 ₹13,714 30 Nov 21 ₹19,090
Detailed portfolio Comparison
L&T Tax Advantage Fund
Growth
Fund Details Asset Allocation
Asset Class Value Cash 0.72% Equity 99.27% Other 0.01% Equity Sector Allocation
Sector Value Financial Services 24.09% Technology 18.98% Basic Materials 17.95% Consumer Cyclical 17.23% Health Care 7.84% Consumer Defensive 4.4% Industrials 3.96% Communication Services 1.88% Real Estate 1.67% Energy 1.28% Top Securities Holdings / Portfolio
Name Holding Value Quantity ICICI Bank Ltd (Financial Services)
Equity, Since 30 Jun 09 | ICICIBANK6% ₹222 Cr 2,766,300 Infosys Ltd (Technology)
Equity, Since 31 Mar 06 | INFY6% ₹210 Cr 1,260,300 UltraTech Cement Ltd (Basic Materials)
Equity, Since 31 Oct 19 | ULTRACEMCO4% ₹128 Cr 167,600
↑ 17,200 Bajaj Finance Ltd (Financial Services)
Equity, Since 31 Jul 21 | 5000343% ₹119 Cr 160,229 Tata Steel Ltd (Basic Materials)
Equity, Since 29 Feb 20 | TATASTEEL3% ₹112 Cr 850,200 HDFC Bank Ltd (Financial Services)
Equity, Since 31 Mar 06 | HDFCBANK3% ₹109 Cr 685,900
↓ -55,600 State Bank of India (Financial Services)
Equity, Since 31 Jan 19 | SBIN3% ₹96 Cr 1,921,000
↓ -986,500 Wipro Ltd (Technology)
Equity, Since 30 Sep 21 | 5076852% ₹80 Cr 1,241,800
↑ 276,600 Persistent Systems Ltd (Technology)
Equity, Since 31 Jul 21 | PERSISTENT2% ₹77 Cr 195,500 K.P.R. Mill Ltd (Consumer Cyclical)
Equity, Since 31 Jan 15 | 5328892% ₹76 Cr 1,687,238
↓ -700,000 SBI Magnum Tax Gain Fund
Growth
Fund Details Asset Allocation
Asset Class Value Cash 5.07% Equity 94.93% Equity Sector Allocation
Sector Value Financial Services 27.21% Industrials 12.49% Consumer Cyclical 11.62% Technology 10.28% Health Care 8.63% Basic Materials 8.26% Energy 6.76% Consumer Defensive 2.5% Real Estate 2.19% Utility 2.19% Communication Services 2.18% Top Securities Holdings / Portfolio
Name Holding Value Quantity ICICI Bank Ltd (Financial Services)
Equity, Since 31 Jan 17 | ICICIBANK5% ₹595 Cr 7,416,237 Tech Mahindra Ltd (Technology)
Equity, Since 31 Jan 17 | 5327554% ₹483 Cr 3,265,953
↓ -614,788 Larsen & Toubro Ltd (Industrials)
Equity, Since 28 Feb 07 | LT4% ₹436 Cr 2,468,968 ICICI Prudential Life Insurance Company Limited (Financial Services)
Equity, Since 30 Sep 16 | 5401334% ₹427 Cr 6,904,842 Infosys Ltd (Technology)
Equity, Since 31 Mar 18 | INFY4% ₹422 Cr 2,531,001
↑ 500,000 State Bank of India (Financial Services)
Equity, Since 31 May 06 | SBIN3% ₹386 Cr 7,685,639 Reliance Industries Ltd (Energy)
Equity, Since 30 Apr 06 | RELIANCE3% ₹382 Cr 1,507,009 HDFC Bank Ltd (Financial Services)
Equity, Since 30 Jun 07 | HDFCBANK3% ₹344 Cr 2,172,644 Cipla Ltd (Healthcare)
Equity, Since 31 Jul 18 | 5000873% ₹308 Cr 3,403,528 Mahindra & Mahindra Ltd (Consumer Cyclical)
Equity, Since 31 Dec 16 | M&M3% ₹302 Cr 3,415,083
Therefore, based on the above pointers, it can be concluded that both the schemes differ on a number of parameters. As a consequence, individuals should be careful while choosing any of the schemes for investment. They should verify whether the scheme matches their investment objective or not. Also, individuals must understand the functioning of the scheme completely. This will help them to attain their objectives on time along with ensuring the safety of their investment.
All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.
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