SBI Magnum Tax Gain Scheme

Updated on Jul 10, 2020

Overview

Believe it or not, many of SBI Mutual Fund schemes are giving better returns than SBI FDs. A scheme of mutual funds has given an annual return of up to 27 percent return every year. Apart from this, there are many good schemes, whose returns have been better than FD. When an average return is called in a mutual fund, it means that the scheme has given such a return every year. This is called the Compound Annual Growth Rate (CAGR) Compound Annual Growth Rate (CAGR). In the mutual fund industry, returns of more than one year are usually reported in this way. 

SBI Magnum Tax Gain Fund is a part of the ELSS category. ELSS or Equity Linked Savings Schemes are mutual funds schemes that give individuals the benefit of both investing and tax deductions. People can claim tax benefits up to INR 1,50,000 in investment ELSS Section 80C of Income Tax Act, 1961. However, being a tax saving scheme, it has a lock-in period of three years. SBI Magnum is a part of the Tax Gain Fund, SBI Mutual Fund was launched on March 31, 1993. SBI Magnum Tax Gain uses the S&P BSE 100 Index to build its portfolio. The scheme's investment objective is to get the tax deduction and the benefits of investing in a portfolio of equity shares. With exposure to the equity market, investors who invest to save tax may choose to invest in equity funds.

The growth rate of the SBI Magnum Tax Gain Scheme is one of the equity plan funds which possess high risks. The scheme was introduced on March 31, 1993. Currently, the value of Net Asset is INR 132.35. The least investment needed for this plan is INR 500, along with SIP's investment, which starts from INR 500. 

The scheme by SBI is a savings scheme linked with equity. The leading portfolio constitutes equity funds under this scheme. The main objective of the funds is to allow the investors to benefit from the withdrawal as per the rules of Section 80C, and this also circulates surplus profits regularly.

Performance

However, the scheme does not perform well when the market goes downwards. This situation arises from the periodic changes in the investment strategies, but it can be stable at times as well. However, the change in funds back in 2016 brought a drastic shift as the performance, strategy, reward, and risk changes as well. Plus, as of now, the fund is working pretty well for it'sits investors.

Statics of the SBI Magnum Tax Gain Funds

The funds were introduced on March 31, 1993, through the SBI Funds Management Pvt Ltd. 

Risk level

The risk level for this scheme is under average as the funds perform well in the market even after facing an ample amount of fluctuation. It is safe to invest money in as after 2016, we have witnessed drastic change in performance, reward, and risk. The fund stays at the neutral level of the risk.

Redemption

As this is under the ELSS savings tax fund, the funds are allowed to release after the least period of lock-in of three years. However, this is only allowed in normal conditions. The house dealing with the funds is supposed to release the funds for redemption within ten business days from the date of the bill of the demanded date. They must transfer the profits to the individual's bank account properly.

Fund Manager

The Fund Manager for the SBI Magnum Tax Gain Funds is Dinesh Balachandran, and he has been regulating the funds from September 2016. It is said that after that, the funds are doing quite right in the market, and it has been neutral ever since. The fund manager's investment style is unique from the fund managers that were handling the funds earlier. The new manager gives more attention to the assessment and values. He mostly focuses on the margin while choosing stocks.

Entry or Exit Load

The SBI Magnum Tax Gain Scheme is a tax-savings fund that leans more towards the large scale companies. The exit load for the funds stands at 0%. However, the funds' expense ratio is at 2.11%, which will be applied at the end of every year.

Benefits

Any individual can benefit from INR 1.5 lakhs after investing as per the rules of Section 80C in the SBI Magnum Tax Gain Scheme. However, if the returns are more than INR 1 lakh during the on-going sale, which will be from the allotment date at the rate of 10% tax is payable and without indexation.

The SBI Magnum Tax Gain Scheme is a tax-savings fund that leans more towards the large scale companies. The main focus of the scheme is prominent development. The assortment of funds has amplified in the past couple of years. Plus, people are investing more in stocks than earlier. It is safe to say that the funds' track record has been unstable for a long time. However, with the new regulations, the conditions for the funds are still the same. 

Frequently Asked Questions

Q. What is SBI Magnum Tax Gain Scheme?

SBI Magnum Tax Gain Fund is a part of the ELSS or Equity Linked Savings Schemes are mutual funds schemes that give individuals the benefit for both investing as well as tax deductions.

Q. When was the scheme launched?

The scheme was introduced on March 31, 1993.

Q. Who launched this scheme?

The SBI Funds Management Pvt Ltd introduced the funds. 

Q. What is the objective of this scheme?

The primary objective of the scheme is to get the tax deduction as well as the benefits of devoting in an assortment of equity shares. With exposure to the equity market, investors who invest to save tax may choose to invest in equity funds.

Q. What is the least investment rate?

The least investment needed for this plan is INR 500. 

Q. What is the risk level of this scheme?

The risk level for this scheme is under average as the funds perform well in the market even after facing an ample amount of fluctuation. It is safe to invest money in as after 2016's2016's drastic change in performance, reward, and risk. The fund stays at the neutral level of the risk.

Q. What are the benefits of this scheme?

Any individual can benefit from INR 1.5 lakhs after investing as per the rules of Section 80C in the SBI Magnum Tax Gain Scheme. However, if the returns are more than INR 1 lakh during the on-going sale, which will be from the allotment date at the rate of 10% tax is payable and without indexation.

Q. Who is the manager of the funds?

The Fund Manager for the SBI Magnum Tax Gain Funds is Dinesh Balachandran, and he has been regulating the funds from September 2016.

Q. What is the entry and exit load for the funds?

The exit load for the funds stands at 0%. However, the expense ratio of the funds are at 2.11%, which will be applied at the end of every year.


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WRITTEN BYVarsha Verma

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