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Fincash » SBI Magnum Tax Gain Vs Reliance Tax Saver Fund

SBI Magnum Tax Gain Fund Vs Reliance Tax Saver Fund (ELSS)

Updated on September 15, 2019 , 356 views

SBI Magnum Tax Gain Fund and 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 Reliance 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.

About 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.

Overview of Reliance Tax Saver Fund (ELSS)

Reliance Tax Saver Fund (ELSS) is managed by Reliance 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 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 Reliance Tax Saver Fund (ELSS): A Comparative Study

Both SBI Magnum Tax Gain and Reliance Tax Saver Fund (ELSS) 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 Reliance 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
Reliance Tax Saver Fund (ELSS)
Growth
Fund Details
₹47.6173 ↓ -1.21   (-2.49 %)
₹9,659 on 31 Jul 19
21 Sep 05
Equity
ELSS
16
Moderately High
2.41
-0.74
-1.04
-8.5
Not Available
NIL
SBI Magnum Tax Gain Fund
Growth
Fund Details
₹131.002 ↓ -2.33   (-1.75 %)
₹6,741 on 31 Jul 19
7 May 07
Equity
ELSS
31
Moderately High
3.02
-0.47
-1.41
0.19
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
Reliance Tax Saver Fund (ELSS)
Growth
Fund Details
-0.9%
-13%
-13.6%
-16.3%
-1.7%
2.1%
11.8%
SBI Magnum Tax Gain Fund
Growth
Fund Details
-1.5%
-7%
-7.9%
-7.6%
2.4%
4.9%
9%

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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 Reliance Tax Saver Fund (ELSS) is higher in comparison to SBI Magnum Tax Gain Fund. The summary of this section is given below as follows.

Parameters
Yearly Performance2018
2017
2016
2015
2014
Reliance Tax Saver Fund (ELSS)
Growth
Fund Details
-20.7%
46%
4.2%
-2.9%
83%
SBI Magnum Tax Gain Fund
Growth
Fund Details
-8.3%
33%
2.1%
3.2%
49.1%

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
Reliance Tax Saver Fund (ELSS)
Growth
Fund Details
₹500
₹500
Ashwani Kumar - 13.37 Yr.
SBI Magnum Tax Gain Fund
Growth
Fund Details
₹500
₹500
Dinesh Balachandran - 2.64 Yr.

Growth of 10k Investments over the years

Growth of 10,000 investment over the years.
Reliance Tax Saver Fund (ELSS)
Growth
Fund Details
DateValue
31 Aug 14₹10,000
31 Aug 15₹11,054
31 Aug 16₹12,616
31 Aug 17₹15,212
31 Aug 18₹14,889
31 Aug 19₹11,916
Growth of 10,000 investment over the years.
SBI Magnum Tax Gain Fund
Growth
Fund Details
DateValue
31 Aug 14₹10,000
31 Aug 15₹11,138
31 Aug 16₹12,186
31 Aug 17₹13,797
31 Aug 18₹14,825
31 Aug 19₹13,240

Detailed Assets & Holdings Comparison

Asset Allocation
Reliance Tax Saver Fund (ELSS)
Growth
Fund Details
Asset ClassValue
Cash1.34%
Equity98.66%
Other0%
Equity Sector Allocation
SectorValue
Industrials27%
Financial Services20.76%
Consumer Cyclical20.56%
Basic Materials12.06%
Energy6.13%
Consumer Defensive3.37%
Technology3.19%
Utility2.98%
Health Care2.49%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
ICICI Bank Ltd (Financial Services)
Equity, Since 28 Feb 15 | ICICIBANK
6%₹590 Cr14,400,000
↑ 4,860,000
State Bank of India (Financial Services)
Equity, Since 31 Dec 13 | SBIN
6%₹518 Cr18,900,000
Larsen & Toubro Ltd (Industrials)
Equity, Since 31 May 18 | LT
5%₹494 Cr3,717,000
Tata Steel Ltd (Basic Materials)
Equity, Since 31 Jul 14 | TATASTEEL
5%₹490 Cr14,220,000
ABB India Ltd (Industrials)
Equity, Since 31 Mar 12 | 500002
5%₹446 Cr3,330,000
Honeywell Automation India Ltd (Industrials)
Equity, Since 31 Dec 12 | 517174
4%₹404 Cr162,631
↓ -40,000
TVS Motor Co Ltd (Consumer Cyclical)
Equity, Since 31 Jul 12 | 532343
4%₹361 Cr10,224,000
↑ 396,000
Tata Motors Ltd (Consumer Cyclical)
Equity, Since 31 Aug 17 | TATAMOTORS
4%₹347 Cr29,700,000
ITC Ltd (Consumer Defensive)
Equity, Since 31 May 18 | ITC
3%₹310 Cr12,600,000
Siemens Ltd (Industrials)
Equity, Since 31 Dec 09 | 500550
3%₹303 Cr2,520,000
↓ -194,400
Asset Allocation
SBI Magnum Tax Gain Fund
Growth
Fund Details
Asset ClassValue
Cash7.01%
Equity92.99%
Equity Sector Allocation
SectorValue
Financial Services34.93%
Industrials12.73%
Consumer Defensive8.44%
Basic Materials8.35%
Technology7.27%
Health Care5.56%
Energy5.48%
Utility4.09%
Consumer Cyclical3.45%
Communication Services2.68%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Treps
CBLO/Reverse Repo | -
7%₹495 Cr
HDFC Bank Ltd (Financial Services)
Equity, Since 30 Jun 07 | HDFCBANK
7%₹449 Cr2,015,865
↑ 590,000
ICICI Bank Ltd (Financial Services)
Equity, Since 31 Jan 17 | ICICIBANK
6%₹421 Cr10,282,843
ICICI Prudential Life Insurance Co Ltd (Financial Services)
Equity, Since 30 Sep 16 | ICICIPRULI
6%₹384 Cr9,053,525
Reliance Industries Ltd (Energy)
Equity, Since 30 Apr 06 | RELIANCE
5%₹308 Cr2,465,000
↑ 120,000
Larsen & Toubro Ltd (Industrials)
Equity, Since 28 Feb 07 | LT
4%₹278 Cr2,091,500
Axis Bank Ltd (Financial Services)
Equity, Since 30 Sep 11 | 532215
4%₹257 Cr3,864,199
Infosys Ltd (Technology)
Equity, Since 31 Mar 18 | INFY
3%₹228 Cr2,800,000
ITC Ltd (Consumer Defensive)
Equity, Since 29 Feb 12 | ITC
3%₹227 Cr9,255,864
State Bank of India (Financial Services)
Equity, Since 31 May 06 | SBIN
3%₹221 Cr8,060,233

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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