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 ₹52.005 ↓ -0.36 (-0.69 %) ₹3,221 on 30 Nov 18 27 Feb 06 ☆☆☆☆ Equity ELSS 7 Moderately High 2.61 -0.38 -0.05 -7 Not Available NIL SBI Magnum Tax Gain Fund
Growth
Fund Details ₹138.716 ↓ -0.84 (-0.60 %) ₹6,377 on 30 Nov 18 7 May 07 ☆☆ Equity ELSS 31 Moderately High 3.02 -0.49 -1.82 -6.76 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 -2.1% -0.6% -5.3% -11.6% 15.3% 16.1% 13.6% SBI Magnum Tax Gain Fund
Growth
Fund Details 1.3% 5.8% 4% -8.8% 11.4% 14.1% 10.1%
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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 2017 2016 2015 2014 2013 L&T Tax Advantage Fund
Growth
Fund Details -8.1% 42.3% 8.1% 2.9% 44.8% SBI Magnum Tax Gain Fund
Growth
Fund Details -8.3% 33% 2.1% 3.2% 49.1%
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 S.N. Lahiri - 5.94 Yr. SBI Magnum Tax Gain Fund
Growth
Fund Details ₹500 ₹500 Dinesh Balachandran - 2.14 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 31 Dec 13 ₹10,000 31 Dec 14 ₹14,475 31 Dec 15 ₹14,896 31 Dec 16 ₹16,106 31 Dec 17 ₹22,915 31 Dec 18 ₹21,063 SBI Magnum Tax Gain Fund
Growth
Fund Details Growth of 10,000 investment over the years.
Date Value 31 Dec 13 ₹10,000 31 Dec 14 ₹14,914 31 Dec 15 ₹15,392 31 Dec 16 ₹15,715 31 Dec 17 ₹20,904 31 Dec 18 ₹19,161
Detailed portfolio Comparison
L&T Tax Advantage Fund
Growth
Fund Details Asset Allocation
Asset Class Value Cash 2.79% Equity 95.86% Other 1.35% Equity Sector Allocation
Sector Value Financial Services 26.08% Industrials 15.16% Consumer Cyclical 13.93% Basic Materials 13% Technology 12.15% Health Care 5.95% Energy 3.36% Consumer Defensive 2.6% Communication Services 1.93% Utility 1.07% Top Securities Holdings / Portfolio
Name Holding Value Quantity HDFC Bank Ltd (Financial Services)
Equity, Since 31 Mar 06 | HDFCBANK5% ₹165 Cr 777,700 ICICI Bank Ltd (Financial Services)
Equity, Since 30 Jun 09 | ICICIBANK5% ₹151 Cr 4,180,200 Housing Development Finance Corp Ltd (Financial Services)
Equity, Since 31 May 17 | HDFC4% ₹128 Cr 649,000 Graphite India Ltd (Industrials)
Equity, Since 31 Jan 17 | 5094884% ₹123 Cr 1,632,935
↓ -42,035 Larsen & Toubro Ltd (Industrials)
Equity, Since 31 Mar 06 | LT3% ₹108 Cr 753,000 Tata Consultancy Services Ltd (Technology)
Equity, Since 30 Jun 09 | TCS3% ₹107 Cr 565,700
↑ 23,500 Future Retail Ltd (Consumer Cyclical)
Equity, Since 31 Aug 16 | FRETAIL3% ₹92 Cr 1,836,000 (A) Tri Party Repo Dealing System (Treps)
CBLO/Reverse Repo | -3% ₹90 Cr Infosys Ltd (Technology)
Equity, Since 31 Mar 06 | INFY3% ₹89 Cr 1,355,000 ITC Ltd (Consumer Defensive)
Equity, Since 31 Jul 07 | ITC3% ₹83 Cr 2,960,500 SBI Magnum Tax Gain Fund
Growth
Fund Details Asset Allocation
Asset Class Value Cash 7.55% Equity 92.45% Equity Sector Allocation
Sector Value Financial Services 27.53% Consumer Defensive 11.11% Basic Materials 9.4% Industrials 9.32% Technology 9.3% Health Care 9.3% Consumer Cyclical 6.36% Energy 5.05% Communication Services 3.07% Utility 1.8% Top Securities Holdings / Portfolio
Name Holding Value Quantity Treps
CBLO/Reverse Repo | -8% ₹491 Cr ICICI Bank Ltd (Financial Services)
Equity, Since 31 Jan 17 | ICICIBANK6% ₹365 Cr 10,282,843 Infosys Ltd (Technology)
Equity, Since 31 Mar 18 | INFY5% ₹314 Cr 4,700,000
↑ 1,000,000 ITC Ltd (Consumer Defensive)
Equity, Since 29 Feb 12 | ITC5% ₹297 Cr 10,405,864 HDFC Bank Ltd (Financial Services)
Equity, Since 30 Jun 07 | HDFCBANK4% ₹263 Cr 1,235,865 Reliance Industries Ltd (Energy)
Equity, Since 30 Apr 06 | RELIANCE4% ₹256 Cr 2,195,000 Larsen & Toubro Ltd (Industrials)
Equity, Since 28 Feb 07 | LT4% ₹228 Cr 1,591,500 Axis Bank Ltd (Financial Services)
Equity, Since 30 Sep 11 | 5322153% ₹209 Cr 3,337,056 State Bank of India (Financial Services)
Equity, Since 31 May 06 | SBIN3% ₹208 Cr 7,310,233
↓ -2,000,000 Ambuja Cements Ltd (Basic Materials)
Equity, Since 30 Nov 16 | 5004253% ₹205 Cr 9,428,932
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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