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 ₹78.521 ↑ 1.67 (2.17 %) ₹3,254 on 31 Aug 22 27 Feb 06 ☆☆☆☆ Equity ELSS 7 Moderately High 1.97 -0.13 -1.08 -6.08 Not Available NIL SBI Magnum Tax Gain Fund
Growth
Fund Details ₹226.107 ↑ 4.75 (2.15 %) ₹11,204 on 31 Aug 22 7 May 07 ☆☆ Equity ELSS 31 Moderately High 2.22 0.27 -0.19 0.39 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 -0.2% 13.7% -2.7% -1.8% 15.5% 8.1% 13.2% SBI Magnum Tax Gain Fund
Growth
Fund Details -1.4% 10.2% 1.2% 2.1% 19.3% 10.7% 11%
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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 2021 2020 2019 2018 2017 L&T Tax Advantage Fund
Growth
Fund Details 30.3% 13.5% 4.6% -8.1% 42.3% SBI Magnum Tax Gain Fund
Growth
Fund Details 31% 18.9% 4% -8.3% 33%
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 - 2.71 Yr. SBI Magnum Tax Gain Fund
Growth
Fund Details ₹500 ₹500 Dinesh Balachandran - 5.98 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 Sep 17 ₹10,000 30 Sep 18 ₹10,102 30 Sep 19 ₹9,997 30 Sep 20 ₹10,053 30 Sep 21 ₹15,096 30 Sep 22 ₹14,870 SBI Magnum Tax Gain Fund
Growth
Fund Details Growth of 10,000 investment over the years.
Date Value 30 Sep 17 ₹10,000 30 Sep 18 ₹10,047 30 Sep 19 ₹10,228 30 Sep 20 ₹10,513 30 Sep 21 ₹16,387 30 Sep 22 ₹16,654
Detailed portfolio Comparison
L&T Tax Advantage Fund
Growth
Fund Details Asset Allocation
Asset Class Value Cash 0.99% Equity 99.01% Equity Sector Allocation
Sector Value Financial Services 30.06% Consumer Cyclical 22.62% Technology 11.98% Industrials 10.26% Basic Materials 7.35% Consumer Defensive 6.71% Energy 3.85% Health Care 2.86% Utility 1.71% Real Estate 1.61% Top Securities Holdings / Portfolio
Name Holding Value Quantity ICICI Bank Ltd (Financial Services)
Equity, Since 30 Jun 09 | ICICIBANK10% ₹317 Cr 3,572,500 Infosys Ltd (Technology)
Equity, Since 31 Mar 06 | INFY6% ₹194 Cr 1,297,500
↓ -50,700 HDFC Bank Ltd (Financial Services)
Equity, Since 31 Mar 06 | HDFCBANK6% ₹186 Cr 1,249,400 State Bank of India (Financial Services)
Equity, Since 31 Jan 19 | SBIN5% ₹160 Cr 3,005,300 Reliance Industries Ltd (Energy)
Equity, Since 30 Nov 21 | RELIANCE4% ₹125 Cr 475,100
↓ -43,200 Indian Hotels Co Ltd (Consumer Cyclical)
Equity, Since 31 Oct 21 | 5008504% ₹121 Cr 4,240,500
↓ -300,077 Hindustan Unilever Ltd (Consumer Defensive)
Equity, Since 31 Jul 22 | 5006963% ₹112 Cr 419,300 Maruti Suzuki India Ltd (Consumer Cyclical)
Equity, Since 30 Jun 22 | MARUTI3% ₹108 Cr 118,900 Persistent Systems Ltd (Technology)
Equity, Since 31 Jul 21 | PERSISTENT3% ₹97 Cr 276,400 Bajaj Finance Ltd (Financial Services)
Equity, Since 31 Jul 21 | 5000343% ₹97 Cr 132,900 SBI Magnum Tax Gain Fund
Growth
Fund Details Asset Allocation
Asset Class Value Cash 9.32% Equity 90.68% Equity Sector Allocation
Sector Value Financial Services 27.3% Industrials 15.27% Technology 8.91% Consumer Cyclical 8.79% Energy 6.54% Health Care 6.49% Basic Materials 6.04% Utility 3.36% Communication Services 2.8% Real Estate 2.65% Consumer Defensive 2.53% Top Securities Holdings / Portfolio
Name Holding Value Quantity ICICI Bank Ltd (Financial Services)
Equity, Since 31 Jan 17 | ICICIBANK6% ₹658 Cr 7,416,237 Reliance Industries Ltd (Energy)
Equity, Since 30 Apr 06 | RELIANCE4% ₹485 Cr 1,837,574 Larsen & Toubro Ltd (Industrials)
Equity, Since 28 Feb 07 | LT4% ₹475 Cr 2,468,968 Mahindra & Mahindra Ltd (Consumer Cyclical)
Equity, Since 31 Dec 16 | M&M4% ₹447 Cr 3,415,083 ICICI Prudential Life Insurance Company Limited (Financial Services)
Equity, Since 30 Sep 16 | 5401334% ₹411 Cr 6,904,842 State Bank of India (Financial Services)
Equity, Since 31 May 06 | SBIN4% ₹408 Cr 7,685,639 Infosys Ltd (Technology)
Equity, Since 31 Mar 18 | INFY3% ₹378 Cr 2,531,001 Cummins India Ltd (Industrials)
Equity, Since 28 Feb 19 | 5004803% ₹368 Cr 3,088,066 Cipla Ltd (Healthcare)
Equity, Since 31 Jul 18 | 5000873% ₹353 Cr 3,403,528 HDFC Bank Ltd (Financial Services)
Equity, Since 30 Jun 07 | HDFCBANK3% ₹323 Cr 2,172,644
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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