SBI Magnum Tax Gain Review
SBI Mutual Fund has one of the most successful tax saving mutual fund or (ELSS fund) namely SBI Magnum Taxgain scheme – 1993. It is also credited to be the India’s largest ELSS scheme with over 17 lakh investors in its kitty. It is also said to be the No. 1 tax saving or best tax saving scheme or mutual fund in the 5-year period when it comes to the ELSS (Equity Linked Tax Saving) scheme. It was supposed to have been given a return of 28.59% for 5 years although had given far less than expected when it comes to 3 year period which in fact is the regular lock-in period for a tax saving mutual fund in India. It has also been rated with 4 stars by Value Research, the top mutual funds research company in India.
Just like any other tax saver mutual fund (ELSS Fund) this SBI Magnum Tax Gain too has a lock-in period of 3 years. You would be able to withdraw funds only after 3 years and not be able to at all before that. You can thus be able to save tax under section 80CC. You can get tax benefits of up to Rs. 1 lakh on such tax saver mutual fund. One can even choose the option of SIP (Systematic Investment Plan) option to invest in this Magnum Taxgain as well. This fund was launched on March 31, 1993 and is said to be one of the oldest fund in this category in India.
Asset Allocation: The allocation of assets is 80% on equities, bonds, PCD, and FCDs while 20% is for the money market instruments.
Options Available: One can invest in growth option as well as dividend payout or dividend reinvestment option while investing in SBI Mutual Fund Tax Gain scheme 1993.
Lock-in Period: 3 years.
Entry and Exit Load: Nil.
Investment Details: The minimum investment for SBI Magnum Tax Gain is Rs. 500 and in the multiples of 500 afterwards. Similarly under SIP the minimum monthly investment is Rs. 500 and so on. You can even give advance instructions to the registrar the option of withdrawing a certain amount every month (a minimum is Rs. 500) and that too after the 3 years lock-in period.
Current NAV: Magnum Tax Gain Scheme Growth is Rs. 54.92. Magnum Tax Gain Scheme Dividend is Rs. 41.3.
SBI Mutual Fund has recently announced 40% dividend for this fund effective March 5, 2010. That the dividend would be Rs. 4 per unit on the total face value of Rs. 10.
Overall this tax saver mutual fund from SBI can indeed be a worthy investment option in case you are planning to do away with your taxes and don’t mind taking risks for bigger returns later. Although it is said that the past performance is as always a no guarantee for the future results as is the case of any mutual fund that you invest in. Also as always investing in SIP is one of the safest and better approach when it comes to investing in mutual funds.
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Comments
Hello
Can you please tell me when exactly SBI will pay out the dividend as they have anounced the pay on 5th March.
Thanks
Shailesh
It must reach you within a week to 10 days, this is the reply I got from CAMS when I inquired about the same.
Hi, This is Amol. I have one query regarding withdrawal. I invested in SBI Magnum Tax Gain – D fund 3 yrs back. I opted for monthly premium. Now, as 3 yrs locking period is over, I want to withdraw money. How much amount I’ll get back? I heard that the complete amount will be paid only after the 3 yrs of last premium paid (i.e 9 yrs from the date of investment). Is this true?
Thanks
Amol
@Amol, you can withdraw as much money that have been locked in for 3 years so far. i.e., if your first SIP (monthly premium according to you) has reached 3 years, then you can withdraw that amount, while if your last or in between premiums have not reached 3 years, you cannot withdraw the same until they reach 3 years in total. hope this is clear.
Thanks Shiva.It’s very clear.
But for ICICI pru life, the same case was there. My last premium for the policy debited on June 2010, still I got the 98% of total amount I invested in this fund in June 2010 itself. So now my question is, is there any such way in SBI to withdraw the amount?
@Mahesh, just visit SBI MF website at http://www.sbimf.com/ and check the latest NAV under SBI Magnum Tax (Growth).
Dear Sir,
I am investing amt in sbi magnum tax.1993 last 6 yrs.kindly tell me how much i expect to get amt and can i invest long period.
Do we have a facility to get the transaction history (Payments, Dividents, No : of Units etc) from the web?
I want to invest Rs 60000 to 65000 in Magnum Tax Gain and keep my wife as dependent.
I have two questions:
1. will there be any documents to submit for dependents for the investment amount > 50000, if so what are they ?
2. which scheme is more fruitful in future either Magnum Tax Gain Scheme Growth or Magnum Tax Gain Scheme Dividend
Hi
I hva einvested in SBI tax magnum fund . My locking period is over . and I want to withdrawn money . What is procedure for that
Just contact your nearest CAMS centre and ask for the redemption form or just download it at sbimf.com and send it across to the nearest cams or sbi mutual funds center in your locality.
hi i want to invest 30000 on any mutual funds, can u please sugest the best one where i can get maximun return…
Hi,
I could not find any information regarding the charges levied by SBI on the investor for the Magnum Taxgain scheme.
Fund Management Charges, Premium Allocation Charges etc..
Can anyone please provide the information.
The website is not very clear on this.
Thanks & Regards,
Janardhan Reddy
Hi shiva
I had invested in SBI Magnum tax gain dividend three years back, & till date i m in loss of 46%(ex dividend).
Shall i continue with this mf or i shall withdraw money?
Hi, Jaydeep, 46% is way too high loss to redeem!, and the current market scenario could be making it even worse, i would suggest you to wait till the new DTC comes into force to see whether at least it is limping back or not? else after than you can go ahead and redeem them if still making loses…
I want to switchover fm.Magnum Tax Gain Scheme (Dividend)to MTGS-Growth after competing 3 yrs. What formalities I have to complete?.Invested Rs.40000/- on on 15.5.2008 in MTGS-(D). How much I should expect after 3 Yrs.?
@Narendra Kumar, you cannot switch over from dividend to growth option in any mutual fund but can only switch from dividend payout to dividend reinvestment and vice versa. The returns will depend on the existing NAV.
I hade invested Rs.40000/- in SBI Magnum Income Tax Gain Growth dated on January 2010. But I didn’t get any physical document from the SBIMF except email document details after requiesting. How can withdraw after completion of 3 years?. What is the procedure?
If you have given your email id while filling the form, then you will not receive any physical statement. To withdraw after 3 years, just submit the withdrawal or redemption form to sbi mutual fund directly or your nearest CAMS service center in your city. You can download the redemption form from sbimf website.
Hi, This is Deepak. I want to know regarding withdrawal. I invested in SBI Magnum Tax Gain – D fund 3 yrs back. as 3 yrs locking period will over on 26/03/11, I want to withdraw money.what is procedure to withdrawal.
Just fill in the redemption form downloaded from sbi mutual funds website and submit the same at your nearest sbi mutual funds office or cams online service centre in your city.
My Magnum Tax Gain Scheme – Dividend is matured now. If I want to withdraw money, I have to send the document filled by me to the address mentioned in the document, right ? But my question is, which NAV they will put ? It will take 3 working days to reach the mentioned address. If I am sending it on 3rd of May, they will get it on 6th of May. How they will calculate the fund value ? Which day’s NAV they will consider ? 3rd May or 6th May ?
Hi Shiva,
I coul not find the redemption form on sbimf.com. Please let me know where I can find the same.
Thanks,
Pramod
hi Pramod, you will find all forms here http://www.sbimf.com/Downloads/Forms.aspx but if u still not find it, then contact your nearest CAMS online center and ask for the same…
I have Rs.10000/- to invest can u please suggest me best investment plan to earn higher returns as well limited risk involved in it.what u will suggest me on this?
hello,
I want to invest 2000 per month in SIP.
how about SBI magnum? is it gud decision to invest in SBI?
I heard it became old story. its not performing well in last 5 yrs.. Is it true?
I would suggest you to go for any other AMC than SBI, as they have not been performing as good as they used to be some years ago. Try HDFC or DSP
Hi Shiva,
Thanks for the good work you are doing..keep it up?
I have invested 20000 in some SBI mutual fund 3 yrs back and is now matured.Value of the units as on SEP-06-2011 is 21,630,I have monitoring this SBI from past one and half year and it is not promising good returns.However suggest me shall I continue with this fund or shall I withdraw the amount .what is the procedure to withdraw the amount?
Will bank deduces any amount from 21,630 if I withdraw the amount?
Thanks Moin. Since you have not mentioned which fund, it would be tough for me to make the exact call, anyway, just with your comment, i am suggesting that you just wait for some more months if you can as it may not be too bad. if you can wait for 1 year to 2 years you can surely get a much better returns. Getting around Rs. 1000 for a 3 year investment of Rs. 20,000 is almost like a loss for you. Anyway since the market is fluctuating so much, dont withdraw now, i would suggest to wait for some time, if it goes too low, then postpone your withdrawal and if does well then withdraw at least with some more profit.
There will be some % that MF company deducts in the form of STT, otherwise there will not be any deductions from the bank, etc. Hope this is helpful.
I have been investing rs.1000/-p.m towards sbi magnum taxgain,dividend.could u send me my transaction statement?
I am sorry Shiva.
I do not agree with your view on this Fund. SBI Magnum’s huge Asset Size could be spoiler and I do not see this Fund given even Benchmark returns.