Fincash » SBI Magnum Tax Gain Vs Nippon India Tax Saver Fund
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SBI Magnum Tax Gain Fund and Nippon India tax saver Fund (Formerly known as Reliance Tax Saver Fund (ELSS)) both are part of ELSS category. ELSS or Equity Linked Savings Schemes are the Mutual Fund schemes that give individuals the benefits of both investing as well as tax Deduction. People Investing in ELSS can claim tax benefits of up to INR 1,50,000 under Section 80C of income tax Act, 1961. However, being a tax saver scheme, it has a lock-in period of three years. Though both SBI Magnum Tax Gain Fund and Nippon India Tax Saver Fund (ELSS) belong to the same category yet; there are a lot of differences between them with respect to AUM, performance, current NAV, and so on. So, let us look at the differences between both these schemes through this article.
SBI Magnum Tax Gain Fund is a part of SBI Mutual Fund and was launched on March 31, 1993. SBI Magnum Tax Gain uses S&P BSE 100 Index to construct its Portfolio. The investment objective of this scheme is to attain the benefits of investment in a portfolio of equity shares along with tax deduction. Investors looking for saving Taxes along with exposure to equity markets can choose to invest in Equity Funds.
Some of the constituents that form part of SBI Magnum Tax Gain Fund as Top 10 holdings as on January 31, 2018, include ICICI Bank Limited, Reliance Industries Limited, State Bank of India, Mahindra & Mahindra, and Larsen & Toubro Limited.
From October 2019, Reliance Mutual Fund has been renamed as Nippon India Mutual Fund. Nippon Life has acquired majority (75%) stakes in Reliance Nippon Asset Management (RNAM). The company will continue to run its operations without any change in structure and management.
Nippon India Tax Saver Fund is managed by Nippon India Mutual Fund whose inception date is September 21, 2005. The company aims to invest its corpus fund in equity and equity-related instruments thereby achieving Capital growth over long-term. In addition to capital growth, the scheme offers tax deductions under Section 80C of Income Tax Act, 1961. The scheme aims to strike a balance between large-cap and mid cap funds by investing in both the schemes prudently.
As on January 31, 2018, some of the top holdings of Reliance/Nippon India Tax Saver Fund (ELSS) include TVS Motor Company Limited, Tata Motors Limited, Tata Steel Limited, ICICI Bank Limited, and Infosys Limited.
Both SBI Magnum Tax Gain and Nippon India Tax Saver Fund are different with respect to performance, their AUM, NAV, and other related factors. So, let us have a comparative study between both the schemes based on various parameters that are divided into four section, namely, Basics Section, Performance Section, Yearly Performance Section, and Other Details Section.
The parameters covered in the Basics Section include Scheme Category, Current NAV, Fincash Rating, AUM, expense ratio and many more. Let us have a look at each of these parameters. To begin with the Scheme Category, it can be said that both the schemes both the schemes belong to the same category, that is, Equity ELSS.
As per Fincash Ratings, it can be said that Nippon India Tax Saver Fund is rated as 3-Star while SBI Magnum Tax Gain Fund is rated as 2-Star.
The section is summarized using the table given below.
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 Nippon India Tax Saver Fund (ELSS)
Growth
Fund Details ₹90.333 ↑ 0.39 (0.43 %) ₹12,634 on 31 Jul 23 21 Sep 05 ☆☆☆ Equity ELSS 16 Moderately High 1.8 0.98 0.76 1.56 Not Available NIL SBI Magnum Tax Gain Fund
Growth
Fund Details ₹282.504 ↑ 1.48 (0.53 %) ₹15,374 on 31 Jul 23 7 May 07 ☆☆ Equity ELSS 31 Moderately High 1.79 1.65 0.48 9.77 Not Available NIL
The Performance Section compares the CAGR or Compounded Annual Growth Rate of both the schemes. In this section, the returns generated by both the schemes are compared at various time periods. Some of the timeframes for which the data is compared are 1 Month Return, 6 Month Return, 1 Year Return, 5 Year Return and Return Since Inception. While considering most of the time frames, it can be said that Reliance Tax Saver Fund (ELSS) leads the race with respect to the performance. The summary of this section is shown with the help of table given below.
Parameters Performance 1 Month 3 Month 6 Month 1 Year 3 Year 5 Year Since launch Nippon India Tax Saver Fund (ELSS)
Growth
Fund Details 1.4% 11.5% 16% 16.1% 25.2% 9.1% 13.1% SBI Magnum Tax Gain Fund
Growth
Fund Details 1.5% 13.4% 20.7% 25.3% 25.1% 14.2% 11.9%
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This section compares the absolute returns generated by each of the schemes in a particular year. With respect to Yearly Performance, it can be said that here too the performance of Nippon India Tax Saver Fund is higher in comparison to SBI Magnum Tax Gain Fund. The summary of this section is given below as follows.
Parameters Yearly Performance 2022 2021 2020 2019 2018 Nippon India Tax Saver Fund (ELSS)
Growth
Fund Details 6.9% 37.6% -0.4% 1.5% -20.7% SBI Magnum Tax Gain Fund
Growth
Fund Details 6.9% 31% 18.9% 4% -8.3%
This is the last section in the comparison of two funds. The parameters forming part of this section include Minimum SIP investment and Minimum Lumpsum Investment. So, let us look at each of these parameters. To begin with the Minimum SIP and Lumpsum Investment; it can be said that for both the schemes, the minimum amount through SIP and lumpsum mode is the same, that is, INR 500.
The fund manager managing SBI Magnum Tax Gain Fund is Mr. Dinesh Balachandran
Mr. Ashwani Kumar solely is the fund manager of Reliance Tax Saver Fund (ELSS).
The table given below tabulates the data of other details section.
Parameters Other Details Min SIP Investment Min Investment Fund Manager Nippon India Tax Saver Fund (ELSS)
Growth
Fund Details ₹500 ₹500 Rupesh Patel - 2.17 Yr. SBI Magnum Tax Gain Fund
Growth
Fund Details ₹500 ₹500 Dinesh Balachandran - 6.98 Yr.
Nippon India Tax Saver Fund (ELSS)
Growth
Fund Details Growth of 10,000 investment over the years.
Date Value 30 Sep 18 ₹10,000 30 Sep 19 ₹9,383 30 Sep 20 ₹8,266 30 Sep 21 ₹14,270 30 Sep 22 ₹14,378 30 Sep 23 ₹17,301 SBI Magnum Tax Gain Fund
Growth
Fund Details Growth of 10,000 investment over the years.
Date Value 30 Sep 18 ₹10,000 30 Sep 19 ₹10,180 30 Sep 20 ₹10,464 30 Sep 21 ₹16,311 30 Sep 22 ₹16,576 30 Sep 23 ₹21,835
Nippon India Tax Saver Fund (ELSS)
Growth
Fund Details Asset Allocation
Asset Class Value Cash 0.39% Equity 99.33% Equity Sector Allocation
Sector Value Financial Services 35.44% Consumer Cyclical 12.4% Industrials 9.84% Consumer Defensive 9.12% Basic Materials 8.92% Utility 5.22% Technology 5.04% Energy 4.38% Health Care 3.94% Communication Services 3.33% Real Estate 1.51% Top Securities Holdings / Portfolio
Name Holding Value Quantity HDFC Bank Ltd (Financial Services)
Equity, Since 29 Feb 20 | HDFCBANK9% ₹1,109 Cr 7,056,000 ICICI Bank Ltd (Financial Services)
Equity, Since 28 Feb 15 | ICICIBANK8% ₹997 Cr 10,400,000
↓ -300,000 Infosys Ltd (Technology)
Equity, Since 31 Mar 20 | INFY5% ₹632 Cr 4,400,000 Axis Bank Ltd (Financial Services)
Equity, Since 30 Apr 20 | 5322154% ₹560 Cr 5,750,000
↓ -650,000 State Bank of India (Financial Services)
Equity, Since 31 Dec 13 | SBIN4% ₹483 Cr 8,600,000
↓ -400,000 Reliance Industries Ltd (Energy)
Equity, Since 31 Mar 20 | RELIANCE4% ₹457 Cr 1,900,000 NTPC Ltd Shs Dematerialised (Utilities)
Equity, Since 28 Feb 19 | 5325553% ₹357 Cr 16,200,000 Larsen & Toubro Ltd (Industrials)
Equity, Since 31 May 18 | LT3% ₹351 Cr 1,300,000 Samvardhana Motherson International Ltd (Consumer Cyclical)
Equity, Since 30 Nov 21 | MOTHERSON2% ₹304 Cr 31,700,000
↓ -1,000,000 Linde India Ltd (Basic Materials)
Equity, Since 31 Oct 13 | 5234572% ₹257 Cr 410,000
↓ -71,532 SBI Magnum Tax Gain Fund
Growth
Fund Details Asset Allocation
Asset Class Value Cash 4.32% Equity 95.68% Equity Sector Allocation
Sector Value Financial Services 25.93% Industrials 14.7% Health Care 9.35% Consumer Cyclical 8.64% Energy 8.31% Basic Materials 8.1% Technology 8.03% Utility 5.01% Consumer Defensive 3.14% Communication Services 3.06% Real Estate 1.42% Top Securities Holdings / Portfolio
Name Holding Value Quantity ICICI Bank Ltd (Financial Services)
Equity, Since 31 Jan 17 | ICICIBANK5% ₹711 Cr 7,416,237 Larsen & Toubro Ltd (Industrials)
Equity, Since 28 Feb 07 | LT4% ₹667 Cr 2,468,968 HDFC Bank Ltd (Financial Services)
Equity, Since 30 Jun 07 | HDFCBANK4% ₹667 Cr 4,243,253 Mahindra & Mahindra Ltd (Consumer Cyclical)
Equity, Since 31 Dec 16 | M&M3% ₹538 Cr 3,415,083 Bharti Airtel Ltd (Communication Services)
Equity, Since 31 Mar 17 | BHARTIARTL3% ₹476 Cr 5,563,576 Cummins India Ltd (Industrials)
Equity, Since 28 Feb 19 | 5004803% ₹472 Cr 2,763,190
↓ -94,007 Reliance Industries Ltd (Energy)
Equity, Since 30 Apr 06 | RELIANCE3% ₹466 Cr 1,937,574 Axis Bank Ltd (Financial Services)
Equity, Since 30 Sep 11 | 5322153% ₹437 Cr 4,492,332 State Bank of India (Financial Services)
Equity, Since 31 May 06 | SBIN3% ₹431 Cr 7,685,639 Cipla Ltd Shs Dematerialised (Healthcare)
Equity, Since 31 Jul 18 | 5000873% ₹428 Cr 3,403,528
Thus to conclude, it can be said that both the funds have their own attributes, characteristics, and even performance though both the funds belong to the same category. However, people before selecting any fund should understand the modalities of the scheme. They should check whether the scheme matches with their investment objective or not. People can also take help from a financial advisor if required. This will help them to ensure that their money is safe and helps investors to attain their objectives hassle-free on time.
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