Rajiv Gandhi Equity Savings Scheme(RGESS): Tax Saving Scheme now with Mutual Funds

Rajiv Gandhi Equity Savings Scheme(RGESS): Tax Saving Scheme now with Mutual Funds.

The Rajiv Gandhi Equity Savings Scheme (RGESS) which is a Tax Saving Scheme comes now loaded with Mutual Funds for your investments. After considering the various views of the marketmen and general sentiment in the Mutual Fund Industry, the Finance Ministry is now proposing to add Mutual Funds as one of the products to avail the tax rebates under the amended rules for Salaried employees. Managing to do a delicate act of pleasing both the investors as well as marketmen.

Mutual Fund Market Sentiments.

This is in response to the general market sentiments of the Indian Mutual Fund Industry. The Industry was losing direction and focus. The growth had already tappered off and the clearly it was headed for years of down trending. The AAUM were falling, so were the number of new registration of Folio Numbers. The Regulator re-defined couple of rules which made many Asset management Companies reconsider their business models. The regulator set up firewalls between Industry bodies and Self Regulatory Organisations. It also questioned the logic of various fees structures which were being charged to investors. Finally, a change of guard at the Finance Ministry made few changes evident, one of them being the push for adding  ELSS scheme to the RGESS albeit in reincarnated form.

AUM OF TOP 5 CITITES

AUM OF TOP 5 CITIES

Reincarnation of Equity Linked Savings Scheme ELSS

The popular ELSS survives the government wrath to be reborn in a new avatar as RGESS. ELSS which was eligible for Tax rebates under the Section 80 C was proposed to be removed. The new Direct Tax Code which was intended to be rolled out, excluded the rebates provided for the ELSS. Thus effectively putting an end to a succesful product which was gaining popularity among the retail investors. It takes huge and consistent  efforts to educate the investors of benefits of any products. It is certainly a product which was gaining lot of momentum and acceptance since its launch more than 5 years ago.

ELSS SALES

ELSS SALES

(RGESS)Rajiv Gandhi Equity Savings Scheme

The proposed Rajiv Gandhi Equity Savings Scheme scheme would allow income tax deduction of 50 per cent to new retail investors, who invest up to Rs 50,000 directly in equities, and whose annual income is below Rs 10 lakh. To make the scheme more attractive for retail investors, the Finance Ministry is considering reduction in the lock-in period under the scheme to one year from the proposed three years. Now this will make this a truly retail market product for tax saving instrument. Though as an investor benefits of Mutual Fund investments are better realised over a period of at least 3-4 years. If this product gets launched in the market in the proposed form, it would be the only tax saving instrument with least number of years in terms of the lock-in period. However, this is something no one in currently seems to be worried about.

For first time retail investors investing directly in the equity markets, this would be an option which is definitely worth considering.

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Do not go chasing ads, listen to the your needs (Part-1)

Often we come across well drafted advertisements and commercials at the most innocuous of all places. Many of us end up falling prey to some smart ad-men’s near perfect product or advertisement placement.I came across one such advertisement as well. The Ad read ” Save Tax of Rs 42,990 on investments of Rs 1 lacs** “.  The Mutual fund advertisement further explained the benefits of investing in that fund which read as below:

Tax savings: Tax benefits up to Rs 33,990/-* on investment of Rs 1 lac u/s 80c of the Income tax Act, 1961.

Free Life Insurance Cover: 5 times your investment, subject to a minimum cover of Rs 10,000 and a maximum of Rs 5,00,000. Premium on Rs 1 lac cover for 3 yrs would be approximately Rs 9,000 which investors might save.

Capital Growth: ELSS as a medium to long term investment vehicle provides scope for capital growth.

Potential savings on Rs 1 lac investment in ELSS scheme is Rs 42,990.

**Tax saving of Rs 33,990 + Rs 9,000 Life Insurance Premium

*Assuming the investor falls into highest tax bracket and surcharge is applicable.

The advertisement is right in its claims and makes no false promises, mis-selling or overt statements.

Investors would definitely benefit from investments made in such ELSS Tax Saving schemes, however, an investor needs to understand that one of the major highlights of this scheme which is displayed in bold letters above is the charm of saving Rs 42,990.

Do all investors end up saving Rs 42,990?

Simple answer is NO.

Not all investors fall in the highest tax bracket, so savings, for investors in different tax brackets would differ. So it becomes imperative for investors not to chase smart ads and inquire about tax or savings benefits to which accrue to him.

Investors who invest in ELSS schemes are traditionally retail investors who park their money in such scheme as they offer reasonable returns with the shortest possible lock-in period.The government has made a host of individual savings ‘tax-deductible’ under one umbrella called Section 80C and a simple new rule has emerged – if you invest up to Rs. 1 lac in a tax saving instrument or even a combination of them, you effectively reduce your taxable income by up to Rs. 1 lac to save up to Rs. 33,990 in taxes (including applicable surcharge and education cess).

But, you don’t have to invest an entire lac. For example, if your taxable income is Rs. 1,70,000, you would need to invest just Rs. 20,000 in a tax saver to reduce your taxable income to Rs. 1,50,000 and drop your tax to zero!

Below is an indicative table provided for better understanding of tax brackets and applicable effective saving on ELSS schemes for individuals within respective income slabs.

Your annual taxable income (Rs) Your applicable tax before investment (Rs) Optimal amount to invest (Rs) Your ‘new’ taxable income (Rs) Your applicable tax after investment (Rs) Your savings (Rs)
1,70,000 2,000 20,000 1,50,000 0 2,000
1,90,000 4,000 40,000 1,50,000 0 4,000
2,50,000 10,000 1,00,000 1,50,000 0 10,000
3,00,000 15,000 1,00,000 2,00,000 5,000 10,000
4,00,000 35,000 1,00,000 3,00,000 15,000 20,000
5,00,000 55,000 1,00,000 4,00,000 35,000 20,000
7,00,000 1,15,000 1,00,000 6,00,000 85,000 30,000
9,00,000 1,75,000 1,00,000 8,00,000 1,45,000 30,000

NAV SBI MAGNUM TAXGAIN SCHEME

HISTORICAL NAV SBI MAGNUM TAXGAIN SCHEME

PERIOD 1-JAN-2008 TO 10-SEP-2008.

SBI MAGNUM TAXGAIN SCHEME NAV Jan – Sep 2008

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Principal MF

ELSS SCHEMES COMPARISION-16 MAY 2008

ELSS Schemes Performance Comparision-May 2008.

Investments in Equity Linked Savings Schemes, popular mode of investment for tax planning purposes has increased over the period of years. Below is the comparision of some of the schemes. All investments in this category of mutual funds are eligible for tax rebates and have a lock in period of 3 years from the date of investment.

NAV of All SBI Mutual Fund schemes as on 02-May-2008

NAV as on 02-May-2008
SBI Mutual Fund
Open Ended Schemes (Income)
Scheme NAV Name Net Asset Value Repurchase Price Sale Price Date
SBI Magnum Income Fund-Bonus 12.5628 12.5 12.5628 02-May-08
SBI Magnum Income Fund-Dividend 10.2081 10.1571 10.2081 02-May-08
SBI Magnum Income Fund-Growth 20.74 20.6363 20.74 02-May-08
SBI Magnum Income Plus Fund – Investment Plan (D) 10.8534 10.7449 10.8534 02-May-08
SBI Magnum Income Plus Fund – Investment Plan (G) 14.3925 14.2486 14.3925 02-May-08
SBI Magnum Income Plus Fund – Savings Plan (D) 10.2589 10.1563 10.2589 02-May-08
SBI Magnum Income Plus Fund – Savings Plan (G) 10.6041 10.4981 10.6041 02-May-08
SBI Magnum Monthly Income Plan-Dividend-Annually 11.0306 10.9754 11.0306 02-May-08
SBI Magnum Monthly Income Plan-Dividend-Monthly 10.9579 10.9031 10.9579 02-May-08
SBI Magnum Monthly Income Plan-Dividend-Quaterly 10.5984 10.5454 10.5984 02-May-08
SBI Magnum Monthly Income Plan – Growth 18.2354 18.1442 18.2354 02-May-08
SBI Magnum Monthly Income Plan-Floater-Dividend-(Annual) 10.8671 10.8671 10.8671 02-May-08
SBI Magnum Monthly Income Plan-Floater-Dividend-(Monthly) 10.4149 10.4149 10.4149 02-May-08
SBI Magnum Monthly Income Plan-Floater-Dividend-(Quarterly) 10.3492 10.3492 10.3492 02-May-08
SBI Magnum Monthly Income Plan-Floater-Growth 11.7047 11.7047 11.7047 02-May-08
SBI MAGNUM NRI – SHORT TERM BOND PLAN-DIVIDEND 10.5038 10.5038 10.5038 02-May-08
SBI MAGNUM NRI – SHORT TERM BOND PLAN-GROWTH 10.7975 10.7975 10.7975 02-May-08
SBI MAGNUM NRI LONG TERM BOND PLAN-DIVIDEND 10.3 10.2485 10.3 02-May-08
SBI MAGNUM NRI LONG TERM BOND PLAN-GROWTH 10.9047 10.8502 10.9047 02-May-08
SBI Short Horizon Fund – Liquid Plus fund – Institutional Plan – Daily Dividend 10.005 10.005 10.005 02-May-08
SBI Short Horizon Fund – Liquid Plus fund – Institutional Plan – Fortnightly Dividend 0 0 0 02-May-08
SBI Short Horizon Fund – Liquid Plus fund – Institutional Plan – Growth 10.6228 10.6228 10.6228 02-May-08
SBI Short Horizon Fund – Liquid Plus fund – Institutional Plan – Monthly Dividend 10.0889 10.0889 10.0889 02-May-08
SBI Short Horizon Fund – Liquid Plus fund – Institutional Plan – Weekly Dividend 10.0549 10.0549 10.0549 02-May-08
SBI Short Horizon Fund – Liquid Plus fund – Retail Plan – Daily Dividend 10.0048 10.0048 10.0048 02-May-08
SBI Short Horizon Fund – Liquid Plus fund – Retail Plan – fortnightly Dividend 0 0 0 02-May-08
SBI Short Horizon Fund – Liquid Plus fund – Retail Plan – Growth 10.5772 10.5772 10.5772 02-May-08
SBI Short Horizon Fund – Liquid Plus fund – Retail Plan – Monthly Dividend 10.0663 10.0663 10.0663 02-May-08
SBI Short Horizon Fund – Liquid Plus fund – Retail Plan – Weekly Dividend 10.0496 10.0496 10.0496 02-May-08
SBI SHORT HORIZON FUND-SHORT TERM FUND INSTITUTIONAL DIVIDEND FORTNIGHTLY 0 0 0 02-May-08
SBI SHORT HORIZON FUND-SHORT TERM FUND INSTITUTIONAL DIVIDEND MONTHLY 10.1095 10.1095 10.1095 02-May-08
SBI SHORT HORIZON FUND-SHORT TERM FUND INSTITUTIONAL DIVIDEND WEEKLY 0 0 0 02-May-08
SBI SHORT HORIZON FUND-SHORT TERM FUND INSTTUTIONAL GROWTH 0 0 0 02-May-08
SBI SHORT HORIZON FUND-SHORT TERM FUND RETAIL DIVIDEND FORTNIGHTLY 0 0 0 02-May-08
SBI SHORT HORIZON FUND-SHORT TERM FUND RETAIL DIVIDEND MONTHLY 10.1046 10.0541 10.1046 02-May-08
SBI SHORT HORIZON FUND-SHORT TERM FUND RETAIL DIVIDEND WEEKLY 10.0538 10.0035 10.0538 02-May-08
SBI SHORT HORIZON FUND-SHORT TERM FUND RETAIL GROWTH 10.5742 10.5213 10.5742 02-May-08
Open Ended Schemes (Growth)
Magnum Equity Fund -Dividend 32.11 31.79 32.83 02-May-08
Magnum Equity Fund- Growth 36.53 36.16 37.35 02-May-08
SBI Arbitrage Opportunities Fund – Div 10.8108 10.7838 10.8108 02-May-08
SBI Arbitrage Opportunities Fund – Gr 11.4143 11.3858 11.4143 02-May-08
SBI BLUE CHIP FUND-DIVIDEND 11.58 11.46 11.84 02-May-08
SBI BLUE CHIP FUND-GROWTH 13.29 13.16 13.59 02-May-08
SBI Magnum Children Benefit Plan- Holding Held for <= 1 Year 18.6485 18.089 18.9282 02-May-08
SBI Magnum COMMA Fund – Dividend 20.63 20.42 21.09 02-May-08
SBI Magnum COMMA Fund – Growth 22.72 22.49 23.23 02-May-08
SBI MAGNUM GLOBAL FUND 94 – DIVIDEND 32.45 32.13 33.18 02-May-08
SBI MAGNUM GLOBAL FUND 94 – GROWTH 49.13 48.64 50.24 02-May-08
SBI Magnum Index Fund – Dividend 22.6538 22.6538 22.7671 02-May-08
SBI Magnum Index Fund – Growth 45.6704 45.6704 45.8988 02-May-08
SBI Magnum MIDCAP FUND – DIVIDEND 19.58 19.38 20.02 02-May-08
SBI Magnum MIDCAP FUND – GROWTH 25.53 25.27 26.1 02-May-08
SBI Magnum Multicap Fund – Dividend Option 13.47 13.34 13.77 02-May-08
SBI Magnum Multicap Fund – Growth Option 17.73 17.55 18.13 02-May-08
SBI Magnum Multiplier Plus Scheme – 93 -Dividend 54.13 53.59 55.35 02-May-08
SBI Magnum Multiplier Plus Scheme – 93 -Growth 66.76 66.09 68.26 02-May-08
SBI MAGNUM NRI FLEXIASSET PLAN-DIVIDEND 27.095 26.8241 27.7046 02-May-08
SBI MAGNUM NRI FLEXIASSET PLAN-GROWTH 26.9802 26.7104 27.5873 02-May-08
SBI MSFU CONTRA-DIVIDEND 32.64 32.31 33.37 02-May-08
SBI MSFU CONTRA-GROWTH 50.2 49.7 51.33 02-May-08
SBI MSFU EMERGING BUSINESSES FUND – DIVIDEND 19.59 19.39 20.03 02-May-08
SBI MSFU EMERGING BUSINESSES FUND – GROWTH 36.26 35.9 37.08 02-May-08
SBI MSFU FMCG 16.5 16.34 16.87 02-May-08
SBI MSFU IT 20.71 20.5 21.18 02-May-08
SBI MSFU PHARMA – DIVIDEND 26.76 26.49 27.36 02-May-08
SBI MSFU PHARMA – GROWTH 32.5 32.18 33.23 02-May-08
Open Ended Schemes (Balanced)
SBI Magnum Balanced Fund – Dividend 27.96 27.68 28.59 02-May-08
SBI Magnum Balanced Fund – Growth 43.23 42.8 44.2 02-May-08
Open Ended Schemes (Liquid)
MAGNUM INSTA CASH FUND – DAILY DIVIDEND 16.7503 16.7503 16.7503 04-May-08
SBI Magnum Insta Cash Fund – Liquid Floater Plan – Dividend 10.2786 10.2786 10.2786 04-May-08
SBI Magnum Insta Cash Fund – Liquid Floater Plan – Growth 14.0991 14.0991 14.0991 04-May-08
SBI MICF CASH PLAN 18.2504 18.2504 18.2504 04-May-08
SBI MICF DIVIDEND PLAN 10.7068 10.7068 10.7068 04-May-08
SBI Premier Liquid Fund – Institutional – Fortnightly Dividend 10.1189 10.1189 10.1189 04-May-08
SBI Premier Liquid Fund – Institutional – Weekly Dividend 10.5933 10.5933 10.5933 04-May-08
SBI Premier Liquid Fund – Institutional – Daily Dividend 10.0325 10.0325 10.0325 04-May-08
SBI Premier Liquid Fund – Institutional – Growth 13.0831 13.0831 13.0831 04-May-08
SBI Premier Liquid Fund – Super Institutional – Fortnightly Dividend 0 0 0 04-May-08
SBI Premier Liquid Fund – Super Institutional – Weekly Dividend 10.5775 10.5775 10.5775 04-May-08
SBI Premier Liquid Fund – Super Institutional – Daily Dividend 10.0325 10.0325 10.0325 04-May-08
SBI Premier Liquid Fund – Super Institutional – Growth 12.9323 12.9323 12.9323 04-May-08
Open Ended Schemes (Gilt)
SBI MGLT- DIVIDEND – PF (Fixed Period – 1 Yr) Option 10.0578 10.0075 10.0578 02-May-08
SBI MGLT- DIVIDEND – PF (Fixed Period – 2 Yrs) Option 10.0161 9.946 10.0161 02-May-08
SBI MGLT- DIVIDEND – PF (Fixed Period – 3 Yrs) Option 10.1146 10.0236 10.1146 02-May-08
SBI MGLT- DIVIDEND – PF (Regular) Option 10.1819 10.1819 10.1819 02-May-08
SBI MGLT- GROWTH – PF (Fixed Period – 1 Yr) Option 11.573 11.5151 11.573 02-May-08
SBI MGLT- GROWTH – PF (Fixed Period – 2 Yrs) Option 11.4835 11.4031 11.4835 02-May-08
SBI MGLT- GROWTH – PF (Fixed Period – 3 Yrs) Option 11.3415 11.2394 11.3415 02-May-08
SBI MGLT- GROWTH – PF (Regular) Option 11.6879 11.6879 11.6879 02-May-08
SBI MGLT-DIVIDEND 10.1263 10.1263 10.1263 02-May-08
SBI MGLT-GROWTH 18.2628 18.2628 18.2628 02-May-08
SBI MGST-DIVIDEND 10.2663 10.2663 10.2663 02-May-08
SBI MGST-GROWTH 16.3303 16.3303 16.3303 02-May-08
Open Ended Schemes (ELSS)
SBI MAGNUM TAXGAIN SCHEME 1993 – DIVIDEND 44.87 44.87 45.88 02-May-08
SBI MAGNUM TAXGAIN SCHEME 1993 – GROWTH 55.21 55.21 56.45 02-May-08
Open Ended Schemes (Floating Rate)
SBI Magnum Income Fund – F R P – Long Term – Inst. (D) 0 0 0 02-May-08
SBI Magnum Income Fund – F R P – Long Term – Inst. (G) 0 0 0 02-May-08
SBI Magnum Income Fund – F R P – Long Term – Regular (D) 10.5028 10.4503 10.5028 02-May-08
SBI Magnum Income Fund – F R P – Long Term – Regular (G) 12.4778 12.4154 12.4778 02-May-08
SBI Magnum Income Fund – F R P – Short Term (D) 10.1258 10.1055 10.1258 02-May-08
SBI Magnum Income Fund – F R P – Short Term – (G) 12.4689 12.444 12.4689 02-May-08
SBI Magnum Income Fund – F R P – Short Term – Weekly (D) 10.2441 10.2236 10.2441 02-May-08
Close Ended Schemes (Income)
SBI CAPITAL PROTECTION ORIENTED FUND – I (15/10/07) Growth 9.8027 0 0 30-Apr-08
SBI DEBT FUND SERIES – 13 MONTHS – 3- DIVIDEND 10 10 N.A. 11-Apr-08
SBI DEBT FUND SERIES – 13 MONTHS – 3- GROWTH 11.2072 11.2072 N.A. 11-Apr-08
SBI DEBT FUND SERIES – 13 MONTHS – 4 – DIVIDEND 10 10 0 28-Apr-08
SBI DEBT FUND SERIES – 13 MONTHS – 4 – GROWTH 11.1958 11.1958 0 28-Apr-08
SBI DEBT FUND SERIES – 13 MONTHS – 6 (14/12/07) INSTITUITIONAL DIVIDEND 10.3512 10.1442 0 30-Apr-08
SBI DEBT FUND SERIES – 13 MONTHS – 6 (14/12/07) INSTITUTIONAL GROWTH 10.3521 10.1451 0 30-Apr-08
SBI DEBT FUND SERIES – 13 MONTHS – 6 (14/12/07) RETAIL DIVIDEND 10.3481 10.1411 0 30-Apr-08
SBI DEBT FUND SERIES – 13 MONTHS – 6 (14/12/07) RETAIL GROWTH 10.3476 10.1406 0 30-Apr-08
SBI DEBT FUND SERIES – 18 MONTHS – 2 INSTITUTIONAL DIVIDEND (30/10/07) 10.2005 10.0985 0 30-Apr-08
SBI DEBT FUND SERIES – 18 MONTHS – 2 INSTITUTIONAL GROWTH (30/10/07) 10.3968 10.2928 0 30-Apr-08
SBI DEBT FUND SERIES – 18 MONTHS – 2 RETAIL DIVIDEND (30/10/07) 10.1966 10.0946 0 30-Apr-08
SBI DEBT FUND SERIES – 18 MONTHS – 2 RETAIL GROWTH (30/10/07) 10.3917 10.2878 0 30-Apr-08
SBI Debt Fund Series – 18 Months -1- Dividend 10.391 10.3131 0 30-Apr-08
SBI Debt Fund Series – 18 Months -1-Growth 11.1986 11.1146 0 30-Apr-08
SBI Debt Fund Series – 24 Months -1- Dividend (10/05/07) 10.4692 10.2598 0 30-Apr-08
SBI Debt Fund Series – 24 Months -1-Growth (10/05/07) 10.9954 10.7755 0 30-Apr-08
SBI DEBT FUND SERIES – 30 DAYS-2-DIVIDEND 10.0962 10.071 N.A. 23-Apr-08
SBI DEBT FUND SERIES – 30 DAYS-2 (27/03/08)-GROWTH 10.0964 10.0712 N.A. 23-Apr-08
SBI DEBT FUND SERIES – 90 DAYS – 17 – DIVIDEND 10 10 0 04-Feb-08
SBI DEBT FUND SERIES – 90 DAYS – 17 – GROWTH 10.205 10.205 0 04-Feb-08
SBI DEBT FUND SERIES – 90 DAYS – 22 (26/03/08)-GROWTH 10.1116 10.0105 0 30-Apr-08
SBI DEBT FUND SERIES – 90 DAYS -22 (26/03/08)-DIVIDEND 10.112 10.0109 0 30-Apr-08
SBI DEBT FUND SERIES – 13 MONTHS – 5 – INSTITUTIONAL DIVIDEND 10.2041 10 0 30-Apr-08
SBI DEBT FUND SERIES – 13 MONTHS – 5 – INSTITUTIONAL GROWTH 10.6494 10.4364 0 30-Apr-08
SBI DEBT FUND SERIES – 13 MONTHS – 5 – RETAIL DIVIDEND 10.1967 9.9928 0 30-Apr-08
SBI DEBT FUND SERIES – 13 MONTHS – 5 – RETAIL GROWTH 10.6411 10.4283 0 30-Apr-08
SBI DEBT FUND SERIES 15 MONTHS – 2 – DIVIDEND 10 10 0 22-Apr-08
SBI DEBT FUND SERIES 15 MONTHS – 2 – GROWTH 11.166 11.166 0 22-Apr-08
SBI DEBT FUND SERIES 15 MONTHS – 3 – GROWTH 11.2012 11.1172 0 30-Apr-08
SBI DEBT FUND SERIES 15 MONTHS – 3 – DIVIDEND 10.3892 10.3113 0 30-Apr-08
SBI DEBT FUND SERIES 90D-19 (4/12/07) – DIVIDEND 10 10 N.A. 03-Mar-08
SBI DEBT FUND SERIES 90D-19 (4/12/07) – GROWTH 10.2227 10.2227 N.A. 03-Mar-08
SBI DEBT FUND SERIES-13M-7 (18/03/08) INSTITUTIONAL DIVIDEND 10.1538 9.9507 0 30-Apr-08
SBI DEBT FUND SERIES-13M-7 (18/03/08) INSTITUTIONAL GROWTH 10.1548 9.9517 0 30-Apr-08
SBI DEBT FUND SERIES-13M-7 (18/03/08) RETAIL DIVIDEND 10.1519 9.9489 0 30-Apr-08
SBI DEBT FUND SERIES-13M-7 (18/03/08) RETAIL GROWTH 10.1549 9.9518 0 30-Apr-08
SBI DEBT FUND SERIES-30D-1-(11/3/08)-DIVIDEND 10 10 N.A. 15-Apr-08
SBI DEBT FUND SERIES-30D-1-(11/3/08)-GROWTH 10.1014 10.1014 N.A. 15-Apr-08
SBI DEBT FUND SERIES-90D-16(16/10/07)-DIVIDEND 10 10 0 14-Jan-08
SBI DEBT FUND SERIES-90D-16(16/10/07)-GROWTH 10.2004 10.2004 0 14-Jan-08
SBI DEBT FUND SERIES-90D-20-(26/02/08)-DIVIDEND 10.1631 10.0615 0 30-Apr-08
SBI DEBT FUND SERIES-90D-20-(26/02/08)-GROWTH 10.1961 10.0941 0 30-Apr-08
SBI DEBT FUND SERIES-90D-21-(04-MAR-2008)-DIVIDEND 10.147 10.0455 0 30-Apr-08
SBI DEBT FUND SERIES-90D-21-(04-MAR-2008)-GROWTH 10.1721 10.0704 0 30-Apr-08
SBI DEBT FUND SERS-90D-18-(27/11/07)-D 10 10 0 25-Feb-08
SBI DEBT FUND SERS-90D-18-(27/11/07)-G 10.2223 10.2223 0 25-Feb-08
Close Ended Schemes (Growth)
SBI INFRASTRUCTURE FUND – SERIES I DIVIDEND (6/7/2007) 11.67 11.27 0 02-May-08
SBI INFRASTRUCTURE FUND – SERIES I GROWTH (6/7/2007) 11.67 11.27 0 02-May-08
SBI INFRASTRUCTURE FUND – SERIES I REPURCHASE DIVIDEND (6/7/2007) 11.27 11.27 0 02-May-08
SBI INFRASTRUCTURE FUND – SERIES I REPURCHASE GROWTH (6/7/2007) 11.27 11.27 0 02-May-08
SBI ONE INDIA FUND – DIVIDEND 10.61 10.31 N.A. 02-May-08
SBI ONE INDIA FUND – GROWTH 10.61 10.31 N.A. 02-May-08
SBI ONE INDIA FUND – REPURCHASE NAV- DIVIDEND 10.31 10.31 N.A. 02-May-08
SBI ONE INDIA FUND – REPURCHASE NAV- GROWTH 10.31 10.31 N.A. 02-May-08
Close Ended Schemes (ELSS)
SBI TAX ADVANTAGE FUND – SERIES I – DIVIDEND 10.6 0 0 30-Apr-08
SBI TAX ADVANTAGE FUND – SERIES I – GROWTH 10.6 0 0 30-Apr-08

SBI MAGNUM TAXGAIN 1993 SCHEME-Part 1

Investment Objective
The prime objective of scheme is to deliver the benefit of investment in a portfolio of equity shares, while offering tax rebate on such investments made in the scheme under section 80 C of the Income-tax Act, 1961. It also seeks to distribute income periodically depending on distributable surplus.
Asset Allocation
Instrument % of Portfolio of Plan A & B Risk Profile
Equity,PCD’s and FCD’s and bonds 80-100% Medium to High
Money market instruments 0 – 20% Low
Scheme Highlights
1. There is a statutory lock-in period of three years for investments in a Tax Saving Scheme (irrespective of the fact whether the investors claim the rebate u/s 80C or any other section or not).

2. Dividends may be declared depending on distributable profits of the scheme. Facility to reinvest dividend proceeds into the scheme at NAV.

3. Switchover facility to any other open-ended schemes of SBI Mutual Fund at NAV related prices available after the statutory lock-in period.

Launch Date

Minimum Application

March 31, 1993 Rs. 500 and Multiples of Rs 500

Entry Load

Exit Load

Investments below Rs. 5 crores – 2.25% Investments of Rs.5 crores and above – NIL
Nil

SIP

SWP
Rs.500/month – 12 months Rs.1000/month – 6months Rs.1500/quarter – 12 months
A minimum of Rs. 500 can be withdrawn every month or quarter by issuing advance instructions to the Registrars at any time. This facility is available only after the lock-in period of three years.
Nav’s
Plan

Latest Nav

Date
Magnum Tax Gain Scheme – 1993 – Dividend 41.4 11/04/2008
Magnum Tax Gain Scheme – 1993 – Growth 50.95 11/04/2008

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Principal MF

Reliance Equity Linked Saving Fund – Series I


Investment Objective
The primary objective of the scheme is to generate long-term capital appreciation from a portfolio that is invested predominantly in equities along with income tax benefit.

Asset Allocation
Under normal circumstances, the asset allocation under the Scheme will be as follows:

Type of Security % of Corpus (indicative) Risk Profile
Equities 80 – 100 % High
Debt and Money Market Instruments Up to 20 % Low to Medium
The scheme may invest in equity shares in foreign companies, ADRs / GDRs and instruments convertible into equity shares of domestic or foreign companies and in derivatives as may be permissible under the guidelines issued by SEBI and RBI. As the scheme is governed by ELSS guidelines, such investment will be made, if the ELSS guidelines permit.

The fund managers will follow an active investment strategy taking defensive / aggressive postures depending on opportunities available at various points of time. Subject to Regulations, the asset allocation pattern indicated above may change from time to time, keeping in view market conditions, opportunities and political & economic factors.
It must be clearly understood that the percentages stated above are only indicative and not absolute and that they can vary substantially depending upon the perception of the AMC, the intention being at all times to seek to protect the interests of the Unitholders. Such changes in the investment pattern will be for short term and defensive considerations. However, such changes at all times will comply with ELSS notifications. The asset allocation pattern will be in line with the rules and guidelines of ELSS notifications also.

Investment Pattern
Consistent with the objective of the Scheme and subject to Regulations, the corpus of the Scheme will be invested in any of the following securities.

  • The funds collected under a plan shall be invested in equities, cumulative convertible preference shares and fully convertible debentures and bonds of companies. Investment may also be made in partly convertible issues of debentures and bonds including those issued on rights basis subject to the condition that, as far as possible, the non-convertible portion of the debentures so acquired or subscribed, shall be disinvested within a period of twelve months.
  • It shall be ensured that funds of a plan shall remain invested to the extent of at least eighty per cent in securities specified in clause (a). The scheme shall strive to invest its funds in the manner stated above within a period of six months from the date of closure of the plan in every year. In exceptional circumstances, this requirement may be dispensed with by the Fund, in order that the interests of the assessee are protected.
  • Pending investment of funds of a plan in the required manner, the Fund may invest the funds in short-term money market instruments or other liquid instruments or both. After three years of the date of allotment of the units, the Fund may hold upto twenty per cent of net assets of the plan in short-term money market instruments and other liquid instruments to enable them to redeem investment of those unit holders who would seek to tender the units for repurchase.
The securities mentioned above could be listed, unlisted, privately placed, secured, unsecured, rated or unrated and of any maturity. The securities may be acquired through Initial Public Offerings (IPOs), secondary market operations, private placement or rights offers

Options Available:

  • Growth Plan – Growth option
  • Dividend Plan – Dividend payout Option
Benchmark Index: BSE 100

Minimum Investment Amount:
Minimum initial investment for all categories is Rs.500/- and in multiples of Rs.500/- thereafter. However, as per section 80 C of the Income Tax Act, 1961, the tax benefit will be available only upto a maximum amount of Rs.1,00,000/-.

Specified Redemption Period/Liquidity
The scheme will offer purchase only during the new fund offer period and the redemption/switch-out will be available only during the Specified Redemption Period i.e. first five Business Days on a monthly basis at NAV based prices after an initial lock-in-period of three years from the date of allotment.

Load Structure:
During the New Fund Offer period:
Entry Load: Not Applicable
Exit Load: Nil*
*In accordance with the SEBI (MFs) Regulations, NFO expenses not exceeding 6% of the amount mobilised, will be charged to the scheme and will be amortised over a period of 10 years. If the investor opts for the redemption before the completion of 10 years, proportionate unamortized portion of the NFO expenses outstanding as on the date of the redemption shall be recovered from such investor.

Initial Issue Expenses: Under the SEBI Regulations, the Mutual Fund is entitled to charge New Fund Offer Expenses up to a maximum of 6% of initial resources raised under the Scheme. The New Fund Offer expenses for the Scheme would be amortised over a period of 10 years i.e. tenure of the scheme and would be included in the NAV. Any expenditure in excess of this shall be borne by the AMC. If the investor opts for the redemption before the completion of 10 years, proportionate unamortized portion of the NFO expenses outstanding as on the date of the redemption shall be recovered from such investor.

Example: Unitholder’s Investment Rs. 100

Unit face value Rs. 10, Initial Issue Expenses Rs. 6
No of years amortisation of Initial Issue Expense – 10
3650 Nos of days Amortisation of Initial Issue Expenses
NAV Day one Rs. (94+5.9984)/10 = 9.9998

* Recovery of proportionate Initial Issue Expenses
Redemption before expiry of 10 yrs but after 3 yrs of lock in period from the date of allotment will be subject to an early exit charge. An early exit charge equivalent to the unamortized Initial Issue expenses will be recovered from the investor in case of redemption before expiry of 10 yrs but after 3 yrs of lock in period from the date of allotment. This is illustrated below.
Suppose The scheme has mobilised Rs. 100 crore during the NFO period and Rs.6 cores been incurred towards Initial Issue expenses.
Rs. 6 cores will be amortised equally on a daily basis over a period of 10 yrs. If any investor opts for redemption of 10000 units after expiry of 4 yrs (i.e 48 months), unamoritsed balance of Initial Issue expenses will be recovered from the investor by way of an early exit charge. This will be calculated as follows :

NFO Mobilisation Rs. 100 crores
NFO Units Creation 10 crore (100/10)
NFO Expenses Rs. 6 crore
Amortisation Period 120 months
Amortisation Per Day (6,00,00,000/(120*30) = Rs.16,666.67
Amortisation Per Unit Per Day (16,666.67/100000000) =Rs. 0.000167
Units redeemed after 48 months 10000
Unamortised NFO Expenses
At the end of 48 months = 6,00,00,000- (16,666.67*1460)
i.e Rs.3,56,66,661/-
Unamortised Initial Issue Expenses
Per Unit At the end of 48 months = (3,56,66,661 /10,00,00,000)
i.e. 0.3566

Per Unit Early Exit Charge Applicable at the end of 48 months Rs. 0.3566

Assumed NAV at the end of 48 months Rs.13.5000

Amount payable to the investors Rs.13.5 (-) 0.3566 = Rs.13.1434/-

Recurring Expenses:

Type Upto (%)
Investment Management Fees 1.25%
Marketing Expenses 1.00%
Operational Expenses 0.25%
Total 2.50%

Nomination facility: Available

Inter scheme Switch:
Switch – in from other schemes in Reliance Equity Linked Saving Fund – Series I, will be available only during NFO and at the applicable load structure from these schemes, if any.
Switch – out: Available only during the Specified Redemption Period after expiry of lock-in-period of 3 years, at the applicable load structure in the respective schemes.

Inter plan switch: Not available

SIP: Not Available

SWP: Available only during the Specified Redemption Period

STP: Available as a transferor scheme only after expiry of lock-in-period of 3 years

Sponsor: Reliance Capital Limited.
Trustee: Reliance Capital Trustee Co. Limited.
Investment Manager: Reliance Capital Asset Management Limited.
Statutory Details: The Sponsor, the Trustee and the Investment Manager are incorporated under the Companies Act 1956.

Scheme Specific Risk Factors:
Liquidity aspect of investment in the scheme: The amount invested in the scheme shall be subject to a lock-in of 3 years from the date of allotment and thereafter redemption will be available only during the Specified Redemption Period i.e. first five Business Days on a monthly basis at NAV based prices. Eligible investors in Reliance Equity Linked Saving Fund – Series I are entitled to deductions of the amount invested in units of the scheme, subject to a maximum of Rs. 100,000/- under and in terms of Section 80C (2) (xiii) of the Income Tax Act, 1961. The Scheme does not asssure or guarantee any returns. download application forms here Reliance ELSS SERIES 1

SBI MAGNUM TAXGAIN EQUITY LINKED SAVINGS SCHEME (ELSS)

SBI Magnum Taxgain Scheme 1993 – PART 2. (DIVIDEND)

SBI Mutual Fund Trustee Company Private Limited, Trustees to SBI Mutual Fund have approved dividend in Magnum Taxgain Scheme 1993, an open-ended equity linked savings scheme.

The quantum of dividend per unit is Rs 11 on the face value per unit of Rs 10 and the record date of dividend is February 15, 2008.

Pursuant to payment of dividend, the NAV of the scheme/option would fall to the extent of the payout and statutory levy, if applicable.

SBI Mutual Fund has announced a dividend of 110% (i.e. Rs 11 per unit on the face value of Rs 10) in its open-ended equity linked savings scheme – SBI Magnum Tax Gain Scheme. The objective of the scheme is to deliver the benefits of investment in a portfolio of equity shares, while offering tax rebate on such investments made in the scheme under section 80 C of the Income tax Act, 1961. (Check out Recent SBI MF Dividends).

The record date for the same has been fixed as February 15, 2008. All investors registered under the dividend option of the scheme as on February 15, 2008, will receive this dividend. Please note that dividend as decided shall be paid, subject to availability of distributable surplus. The NAV under the dividend plan of the scheme as on February 11, 2008 was Rs 55.13.

The last dividend declare by the scheme was 110% in March 2007. Over the last one year SBI Magnum Tax Gain Scheme has yielded 22.3% as against 23.9% given by its benchmark BSE 100, as on February 11 2008.

Related Posts Only (manually created not automatically generated)

Principal MF

SBI MAGNUM TAXGAIN ELSS EQUITY LINKED SAVINGS SCHEME(ELSS)

SBI Magnum TaxGain 1993

What is SBI Magnum TaxGain Scheme about?

Magnum TaxGain Scheme is an Equity Linked Savings Scheme (ELSS) from SBI Mutual Fund which offers investors tax benefits on an investment upto Rs 1 Lakh under Section 80C of Indian Income Tax Act 1961. The fund was launched in the year 1993 and is one of the top performers in the ELSS category.

Scheme Highlights:

Entry Load – Investments below Rs. 5 crores – 2.25%,Investments of Rs.5 crores and above – NIL”

SIP/STP Entry Load – 2.25%

Exit Load : NIL

SIP : Minimum amount Rs.500/month – 12 months Rs.1000/month – 6months, Rs.1500/quarter – 12 months.

STP : Minimum amount Rs.1000/- month – 6 months, Rs.3000/ Quarter – 6 months.

Asset Allocation – 80-100% in Equity, partly convertible debentures and fully convertible debentures and bonds & 0 – 20% in Money market instruments.

Minimum Application Amount – Rs 500 for purchase & Multiples of Rs 500 for additional purchase.
Plans & Options – Dividend option with payout and reinvestment facility.

In respect of STP transactions, an investor would now be permitted to transfer any amount from the switch-out scheme, subject to a minimum transfer of Rs.1000 pm or Rs.3000 per quarter, without any restriction on maintaining the minimum balance requirement as stipulated for the switch out scheme. The minimum period for STP will be atleast 6 months.

Enter Section 8OC.

Section 88 was scrapped in Finance Bill 2005. Instead, Section 80C has been introduced. All avenues that were eligible for tax benefits under Section 88 were brought under the Section 80C fold. However, instead of offering tax rebates, investments (up to Rs 100,000) under Section 80C qualify for deduction from gross total income. Hence a new system of claiming tax benefits is now in place.

How have Equities performed as compared to other asset classes?

Track record of the last 15 years shows that equity investments give better returns over the long term. Other asset classes such as Fixed Deposits & Gold have given returns of 5.7% & 10.3% respectively as compared to 15.6% provided by equities (BSE Sensex). (Cumulative annualized returns from 1984 to 2004). We believe that a 3 year horizon is ideal for getting a reasonable return from equity.

Why should I invest in Magnum TaxGain Scheme?

Magnum TaxGain Scheme offers you tax savings upto Rs 33,360 (Calculation based on applicable income slab, tax amount, surcharge & education cess) on an investment of upto Rs 1 Lakh. It also gives you equity market linked returns.

Returns of Magnum Taxgain Scheme

As on 31 January, 2006 FUND CATEGORY BENCHMARK
(BSE 100)

1-Years 105.57% 59.77% 48.36%

3-Years 99.60% 63.65% 48.28%

5-Years 32.13% 29.82% 18.77%

Return Since Launch 19.62% 13.55%

Please note that past performance may or may not be sustained in future.

What is the investment strategy of Magnum TaxGain Scheme?

Magnum TaxGain Scheme follows the bottom up investment strategy. The portfolio size limited to about 35 stocks in all. The strength lies in the ability to identify promising stocks and take them in the portfolio. This strategy has worked in favour of the fund in the last couple of years.

Awards & Achievements:

Magnum TaxGain Scheme has been ranked CPR 1 by CRISIL which indicates ‘very good performance’ It has recently bagged 2 gold awards in the 1 year & 3 year category for performance in the ICRA Online Awards. Magnum TaxGain Scheme has consistently given dividends and the last dividend given was 102% in June 2005.

Does a high NAV reduce the value of my investment?

It may be added by way of clarification that an NAV of Rs.50 in an existing scheme, and an NAV of Rs.10 in an New Fund Offer (NFO) are exactly the same for a new Investor, unlike in a share during an IPO. Two funds with exactly the same portfolio generate the same percentage of return in a given period irrespective of the magnitude of the NAV. Any time is hence the right time to invest!

Please read the Offer Document before investing.

Related Posts Only (manually created not automatically generated)

Principal MF

SBI TAX Advantage Fund – Series I.

Scheme Details:

SBI TAX Advantage Fund – Series I.

Scheme opens on 03-DEC-07.

Scheme closes on 03-MAR-08.

Fund Type: Close Ended.

Fund Class: Equity Tax Saving.

Fund Manager: Rishabh Sheth

Entry Load: Nil.

Exit Load: Nil, however, the investor will have to bear the proportionate unamortized initial issue expenses for any redemption /switch out made before the date of maturity.

Objective: To generate capital appreciation over a period of ten years by investing predominantly in equities of companies across large, mid and small market capitalization, along with income tax benefit.

Issue Price: (Rs.) 10.

Minimum Subscription: Rs. 500/- and in multiples of Re. 500/- thereafter

Plans Available: Growth and Dividend Payout.

Download Form:

SBI Tax Advantage Fund Series 1.

ELSS PERFORMANCE REPORT NOV 2007

Below is the link to the ELSS Performance Report Ending Nov 30, detailing various perspectives for comparing equity linked savings schemes.

SNAPSHOT VIEW :

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PERFORMANCE VIEW :

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NAV DETAILS :

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INVESTMENT DETAILS VIEW :

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RISK VIEW :

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Principal Tax Saving Fund

Principal Tax Savings Fund

Investment Information

Fund Type Open-Ended

Investment Plan Dividend

Asset Size (Rs cr) 218.67 (Jul-31-2007)

Min. Investment Rs 500

Last Dividend Rs 5.00 (Jan-15-2007)

Bonus N.A.





Rank #
35
23
8
2
1
4
6

Absolute Returns (in %)

Year Qtr 1 Qtr 2 Qtr 3 Qtr 4 Annual

2007 -4.6 27.2

2006 28.3 -19.1 14.5 18.0 43.0

2005 0.1 1.9 22.6 11.3 44.3

2004 -3.2 -9.0 17.9 24.5 34.6

2003 -4.8 18.1 31.2 31.8 94.8

2002 25.5 -5.9 -4.1 11.7 31.4

52-week High 94.28 (Jul 16, 07)

52-week Low 60.45 (Sep 11, 06)

Scheme Name : Principal Tax Savings Fund

Record Date

Dividend
(Rs/unit)

15-Jan-2007

5.00

05-Apr-2000

5.00

Portfolio Analysis – Principal Tax Savings Fund (as on Jul 31, 07)





Equity

Sector

Value

Asset

(Rs cr)

%

Easun Reyrl

Engineering

11.17

5.11

Phoenix Mills

Manufacturing

11

5.03

Grasim

Conglomerates

10.96

5.01

UB Holdings

Cement

10.74

4.91

Balaji Telefilm

Media

10.37

4.74

HDFC Bank

Banking/Finance

9.27

4.24

AIA Engineering

Engineering

8.51

3.89

Adhunik Metalik

Metals & Mining

7.41

3.39

Infosys

Technology

7.33

3.35

Jindal Steel

Metals & Mining

7.24

3.31

Asset Allocation

(%)

Equity

93.88

Debt

0

Mutual Funds

N.A

Money Market

0

Cash / Call

6.12

Slew of Tax Saving Funds ELSS NFO’s in recent months.

As all of us know huge number of AMC’s (Asset Mgmt Companies) are out with Tax Saving Funds (ELSS) NFO’s.
The obvious reasons are that Nov-Dec are the months people think about taxes.
As well that the recent run up in the markets have given them even more reasons to cheer and make money out of gullible retail investors.
DSP Merill Lynch
HSBC
Lotus India MF etc.

These are some of the AMC who are under the disguise of offering a complete product range have brought these new funds.

As SEBI has now made it mandatory for fund houses to give a clear reason and purpose of the fund before going for a new fund.
Now the fund managers cannot make a fool of gullible investor by launching a similar fund which it already, has under a fancy new name(much like old wine in new bottle).

DSP Merill Lynch recently have shown a better performamce compared to its past for equity schemes.
HSBC has however very few products to offer and is relatively a new fund house. Not all of its schemes are doing a decent job as far as equity schemes are concerned.
Lotus India has struggled the most of above. Its perhaphs does not even know who are its own fund manager and how long will they stay with the fund house. After a high profile launch and a good team to start the operations. Its has lost its way. I wont be surprised if the current manager quits before the fund completes the mop-up from the market.

Moral of the story is stay away from these NFO and put your precious and hard earned money in safe and time tested schemes like HDFC, SBI, PRINCIPAL etc. who have a longer history or a longer base to start of with.

Also a new investor need not pay high NFO fees which will get ammortised over coming years for these NFO.