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

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.

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.

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.

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.

Growth of 10k Investments over the years