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Fincash » SBI Magnum Tax Gain Vs Nippon India Tax Saver Fund

SBI Magnum Tax Gain Fund Vs Nippon India Tax Saver Fund (ELSS)

Updated on January 17, 2020 , 515 views

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

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.

Nippon India Tax Saver Fund (Formerly known as Reliance Tax Saver Fund (ELSS))

Important Information

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.

SBI Magnum Tax Gain Vs Nippon India Tax Saver Fund: A Comparative Study

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.

Basics 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
BasicsNAV
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
₹57.0138 ↓ -0.11   (-0.19 %)
₹10,667 on 30 Nov 19
21 Sep 05
Equity
ELSS
16
Moderately High
2.17
0.02
-1.15
-11.98
Not Available
NIL
SBI Magnum Tax Gain Fund
Growth
Fund Details
₹148.36 ↑ 0.53   (0.36 %)
₹7,376 on 30 Nov 19
7 May 07
Equity
ELSS
31
Moderately High
2.22
0.22
-1.7
-3.27
Not Available
NIL

Performance Section

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
Performance1 Month
3 Month
6 Month
1 Year
3 Year
5 Year
Since launch
Nippon India Tax Saver Fund (ELSS)
Growth
Fund Details
4.1%
12%
4.5%
4.9%
4.7%
3.4%
12.9%
SBI Magnum Tax Gain Fund
Growth
Fund Details
3.9%
7.3%
4.2%
6.3%
8.4%
6%
9.8%

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Yearly Performance Section

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 Performance2019
2018
2017
2016
2015
Nippon India Tax Saver Fund (ELSS)
Growth
Fund Details
1.5%
-20.7%
46%
4.2%
-2.9%
SBI Magnum Tax Gain Fund
Growth
Fund Details
4%
-8.3%
33%
2.1%
3.2%

Other Details Section

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 DetailsMin SIP Investment
Min Investment
Fund Manager
Nippon India Tax Saver Fund (ELSS)
Growth
Fund Details
₹500
₹500
Ashwani Kumar - 14.28 Yr.
SBI Magnum Tax Gain Fund
Growth
Fund Details
₹500
₹500
Dinesh Balachandran - 3.22 Yr.

Growth of 10k Investments over the years

Growth of 10,000 investment over the years.
Nippon India Tax Saver Fund (ELSS)
Growth
Fund Details
DateValue
31 Dec 14₹10,000
31 Dec 15₹9,708
31 Dec 16₹10,120
31 Dec 17₹14,778
31 Dec 18₹11,722
31 Dec 19₹11,897
Growth of 10,000 investment over the years.
SBI Magnum Tax Gain Fund
Growth
Fund Details
DateValue
31 Dec 14₹10,000
31 Dec 15₹10,320
31 Dec 16₹10,537
31 Dec 17₹14,016
31 Dec 18₹12,847
31 Dec 19₹13,361

Detailed Assets & Holdings Comparison

Asset Allocation
Nippon India Tax Saver Fund (ELSS)
Growth
Fund Details
Asset ClassValue
Cash3.49%
Equity96.51%
Other0%
Equity Sector Allocation
SectorValue
Industrials25.88%
Financial Services24.05%
Consumer Cyclical21.09%
Basic Materials13.07%
Energy9.15%
Utility3.04%
Consumer Defensive0.06%
Communication Services0.04%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
State Bank of India (Financial Services)
Equity, Since 31 Dec 13 | SBIN
10%₹1,068 Cr31,230,000
↓ -3,330,000
Tata Steel Ltd (Basic Materials)
Equity, Since 31 Jul 14 | TATASTEEL
6%₹693 Cr16,200,000
↓ -2,070,000
Tata Motors Ltd (Consumer Cyclical)
Equity, Since 31 Aug 17 | TATAMOTORS
6%₹654 Cr40,500,000
Larsen & Toubro Ltd (Industrials)
Equity, Since 31 May 18 | LT
6%₹635 Cr4,770,000
TVS Motor Co Ltd (Consumer Cyclical)
Equity, Since 31 Jul 12 | 532343
5%₹489 Cr10,249,200
↑ 565,903
ICICI Bank Ltd (Financial Services)
Equity, Since 28 Feb 15 | ICICIBANK
4%₹461 Cr9,000,000
↓ -6,300,000
ABB India Ltd (Industrials)
Equity, Since 31 Mar 12 | 500002
4%₹450 Cr3,107,000
↑ 966
Honeywell Automation India Ltd (Industrials)
Equity, Since 31 Dec 12 | 517174
4%₹429 Cr154,499
↓ -4,330
Reverse Repo
CBLO/Reverse Repo | -
4%₹400 Cr
Ashok Leyland Ltd (Consumer Cyclical)
Equity, Since 30 Nov 18 | 500477
4%₹399 Cr50,400,000
↑ 1,800,000
Asset Allocation
SBI Magnum Tax Gain Fund
Growth
Fund Details
Asset ClassValue
Cash5.06%
Equity94.94%
Equity Sector Allocation
SectorValue
Financial Services36.79%
Industrials12.08%
Basic Materials8.3%
Technology7.02%
Consumer Defensive6.67%
Utility5.91%
Health Care5.44%
Energy5.29%
Consumer Cyclical3.99%
Communication Services3.46%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
HDFC Bank Ltd (Financial Services)
Equity, Since 30 Jun 07 | HDFCBANK
6%₹442 Cr3,466,730
↓ -565,000
Axis Bank Ltd (Financial Services)
Equity, Since 30 Sep 11 | 532215
5%₹403 Cr5,454,199
↑ 1,500,000
Treps
CBLO/Reverse Repo | -
5%₹374 Cr
ICICI Prudential Life Insurance Co Ltd (Financial Services)
Equity, Since 30 Sep 16 | ICICIPRULI
5%₹334 Cr6,654,842
↓ -1,048,683
Larsen & Toubro Ltd (Industrials)
Equity, Since 28 Feb 07 | LT
4%₹317 Cr2,383,981
ICICI Bank Ltd (Financial Services)
Equity, Since 31 Jan 17 | ICICIBANK
4%₹298 Cr5,812,042
↓ -4,470,801
State Bank of India (Financial Services)
Equity, Since 31 May 06 | SBIN
4%₹289 Cr8,462,366
↓ -947,867
Infosys Ltd (Technology)
Equity, Since 31 Mar 18 | INFY
4%₹276 Cr3,970,000
↑ 945,178
Reliance Industries Ltd (Energy)
Equity, Since 30 Apr 06 | RELIANCE
4%₹275 Cr1,770,000
↓ -695,000
Housing Development Finance Corp Ltd (Financial Services)
Equity, Since 30 Jun 07 | HDFC
3%₹235 Cr1,022,436
↓ -635,000

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.

Disclaimer:
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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