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 ₹64.756 ↑ 0.85 (1.33 %) ₹3,439 on 31 Dec 20 27 Feb 06 ☆☆☆☆ Equity ELSS 7 Moderately High 2.04 0.42 -1.5 -3.61 Not Available NIL SBI Magnum Tax Gain Fund
Growth
Fund Details ₹178.525 ↑ 2.78 (1.58 %) ₹8,767 on 31 Dec 20 7 May 07 ☆☆ Equity ELSS 31 Moderately High 2.22 0.55 -1.12 0.67 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 4.2% 20% 31.6% 12.7% 3% 13.4% 13.4% SBI Magnum Tax Gain Fund
Growth
Fund Details 6.3% 23.6% 33.6% 20.3% 5.3% 11.9% 10.6%
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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 Venugopal Manghat - 1.04 Yr. SBI Magnum Tax Gain Fund
Growth
Fund Details ₹500 ₹500 Dinesh Balachandran - 4.31 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 15 ₹10,000 31 Dec 16 ₹10,813 31 Dec 17 ₹15,384 31 Dec 18 ₹14,140 31 Dec 19 ₹14,798 31 Dec 20 ₹16,789 SBI Magnum Tax Gain Fund
Growth
Fund Details Growth of 10,000 investment over the years.
Date Value 31 Dec 15 ₹10,000 31 Dec 16 ₹10,210 31 Dec 17 ₹13,581 31 Dec 18 ₹12,449 31 Dec 19 ₹12,946 31 Dec 20 ₹15,389
Detailed portfolio Comparison
L&T Tax Advantage Fund
Growth
Fund Details Asset Allocation
Asset Class Value Cash 2.98% Equity 97% Other 0.02% Equity Sector Allocation
Sector Value Financial Services 23.73% Basic Materials 15.07% Consumer Cyclical 13.77% Technology 13.51% Health Care 10.23% Industrials 7.26% Consumer Defensive 6.77% Energy 4.63% Communication Services 2.03% Top Securities Holdings / Portfolio
Name Holding Value Quantity HDFC Bank Ltd (Financial Services)
Equity, Since 31 Mar 06 | HDFCBANK5% ₹158 Cr 1,097,700
↑ 244,300 ICICI Bank Ltd (Financial Services)
Equity, Since 30 Jun 09 | ICICIBANK5% ₹157 Cr 2,933,600
↓ -672,200 Infosys Ltd (Technology)
Equity, Since 31 Mar 06 | INFY5% ₹155 Cr 1,232,500
↓ -137,700 HCL Technologies Ltd (Technology)
Equity, Since 30 Sep 17 | HCLTECH4% ₹148 Cr 1,560,900
↓ -197,500 Reliance Industries Ltd (Energy)
Equity, Since 31 Aug 18 | RELIANCE4% ₹129 Cr 648,400
↓ -169,600 Tata Consultancy Services Ltd (Technology)
Equity, Since 30 Jun 09 | TCS4% ₹123 Cr 430,700
↓ -61,200 Larsen & Toubro Ltd (Industrials)
Equity, Since 31 Mar 06 | LT3% ₹100 Cr 778,000 Emami Ltd (Consumer Defensive)
Equity, Since 30 Jun 19 | 5311623% ₹99 Cr 2,333,743 ICICI Lombard General Insurance Co Ltd (Financial Services)
Equity, Since 30 Sep 19 | 5407163% ₹93 Cr 609,000 Berger Paints India Ltd (Basic Materials)
Equity, Since 29 Feb 16 | 5094803% ₹89 Cr 1,169,800 SBI Magnum Tax Gain Fund
Growth
Fund Details Asset Allocation
Asset Class Value Cash 4.17% Equity 95.83% Equity Sector Allocation
Sector Value Financial Services 24.68% Health Care 14.46% Technology 11.46% Consumer Cyclical 10.68% Industrials 10.31% Energy 5.75% Basic Materials 5.45% Consumer Defensive 4.84% Communication Services 4.14% Utility 3.02% Real Estate 0.62% Top Securities Holdings / Portfolio
Name Holding Value Quantity Reliance Industries Ltd (Energy)
Equity, Since 30 Apr 06 | RELIANCE5% ₹398 Cr 2,007,009 Cipla Ltd (Healthcare)
Equity, Since 31 Jul 18 | 5000874% ₹394 Cr 4,803,528 Bharti Airtel Ltd (Communication Services)
Equity, Since 31 Mar 17 | BHARTIARTL4% ₹363 Cr 7,128,671
↑ 1,600,000 ICICI Prudential Life Insurance Co Ltd (Financial Services)
Equity, Since 30 Sep 16 | 5401334% ₹344 Cr 6,904,842 ICICI Bank Ltd (Financial Services)
Equity, Since 31 Jan 17 | ICICIBANK4% ₹333 Cr 6,216,237 Tech Mahindra Ltd (Technology)
Equity, Since 31 Jan 17 | 5327554% ₹326 Cr 3,349,921 Larsen & Toubro Ltd (Industrials)
Equity, Since 28 Feb 07 | LT4% ₹318 Cr 2,468,968
↑ 720,000 Crompton Greaves Consumer Electricals Ltd (Consumer Cyclical)
Equity, Since 31 Dec 19 | CROMPTON3% ₹294 Cr 7,720,000 HDFC Bank Ltd (Financial Services)
Equity, Since 30 Jun 07 | HDFCBANK3% ₹284 Cr 1,976,345 Ambuja Cements Ltd (Basic Materials)
Equity, Since 30 Nov 16 | 5004253% ₹275 Cr 11,063,638
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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