SBI Magnum Taxgain Scheme 1993 dividend for 2009 has been announced by SBI MF

SBI Magnum Taxgain Scheme 1993 dividend for 2009 has been announced by SBI MF. With over 17 lakh investors and a stable track-record of over 15-years SBI Magnum TaxGain ELSS Scheme 1993 has proved to be one of the most consistent performer amongst the tax saving schemes category in the Indian Mutual Fund Industry. See previous dividends declared

Dividend for 2009

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Magnum TaxGain ELSS Scheme : 28%

Magnum Tax Gain ELSS has generated excellent returns over past 15 years and continues to provide retail investors a profitable avenue with constant stream of fat dividends. The SBI TaxGain Equity Linked Savings Scheme is also one of the largest equity scheme in India with corpus of over 3,262 Crores (Download Magnum TaxGain April 2009 Fact Sheet).  SBI Mutual Fund is India’s largest bank sponsored mutual fund and has an enviable track record in judicious investments and consistent wealth creation.

After an long delay(and nil dividend in the previous financial year) it had become almost imperative for the fund manager/investment managers at SBI MF to declared a dividend no matter how small the dividend amount be.  The scheme’s rivals like HDFC TaxSaver and HDFC Long Term Advantage Fund had already declared decent and timely dividend income in the past. Irony of dividends in falling markets is that, it lowers already low NAV.

Dividend Income Bigger than Annual Bonus/Increment:

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In fact, for many Salaried Investors of this scheme, due to economic downturn the Dividend Income received from SBI Magnum Taxgain has ironically outstripped their annual bonus/incentive and annual increment incomes in their current profession.

The record date for dividend is 29-May-2009. Post declaration of the dividend the NAV of the scheme will fall to the extent of the dividend payout. Check NAV of the scheme.

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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


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.

Latest Nav

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


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.

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Principal MF


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.

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