SBI Magnum Taxgain Scheme 1993 ranks No. 1 offering 29.98% 5-year returns as on December 31, 2009
Chennai, January 21, 2010: Magnum Taxgain, one of the oldest funds in the ELSS category, has been ranked No 1 Tax-saving mutual fund scheme offering 5-year annualized returns of 29.98% as on December 31, 2009. Magnum Taxgain is No 1 in terms of AUMs at Rs. 5,386 crore, and in terms of investors - at over 17 lakh investors (as on 31/12/2009).
The objective of the scheme is "to deliver the benefit of investment in a portfolio of equity shares, while offering deduction 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." The fund invests 80-100% in equity & equity related securities and remaining 0-20% in money market instrument.
"The sole focus of the fund for the last 15 years has been on generating consistent returns. The investment philosophy of the fund is aligned to the fact that most of the investor's are retail investors and that there is lock in for investment. Thus the strategy is to take long term calls in stocks and sectors which will minimize the volatility and risk in the fund. At this point in time, the focus is on bottom up stock picking irrespective of the stock being a large cap or a mid cap name which have a proven track record and better visibility going ahead.", says Jayesh Shroff, fund manager, Magnum Taxgain Scheme.
Magnum Taxgain Scheme: Date of Inception - 31/03/1993. Returns are as on 31/12/2009. NAV for growth option as on 31/12/2009 is Rs. 57.77. Returns are CAGR calculated for dividend option and assumed that the dividend declared under the scheme have been reinvested at the prevailing NAV. Growth option introduced on 7th May 2007.
As the fund has a lock-in period of 3 years, the investment strategy is aligned with a return profile ranging between 1 to 3 years. The mandatory lock-in period also protects the fund from pre-mature redemptions. Also, since the investor profile of the fund is largely retail, the volatility in the fund is kept as low as possible.
The primary criterion for stock selection is fundamentals of the company which would include strong financials, quality of management, industry standing. In the current environment, the stock selection process focuses on two kinds of stocks / sectors: where there is good amount of visibility of sales and profit and where operations are cash flow positive.
Awards & recognition for Magnum Taxgain Scheme
Value Research has rated it as a 4 Star fund in the Tax Planning category (As on 31/12/2008). The fund was also rated as a 5 star fund in the 3 years performance category ending December 2008 (open-ended ELSS) at the ICRA Mutual Fund Awards 2009.
Fund House pedigree
SBI Mutual Fund which manages Magnum Taxgain Scheme has fund management expertise of over 20 years managing assets worth Rs. 37,900 crore. (As on 31/12/2009. Source: www.amfiindia.com). SBI Mutual Fund was launched with a simple objective: To reach out to the smallest investors and provide them with alternate investment options to help achieve their financial goals. SBI Mutual Fund devotes considerable resources to gain, maintain and sustain profitable insights into market movements. It consistently pushes the envelope to ensure their investors get value for their investments. Schemes of the fund house have performed well and have emerged as the preferred investment for millions of investors. The trust reposed on SBI MF by more than 58 lakh investors is a genuine tribute to their expertise in Fund Management and dedication to our singular focus. This has also resulted in various awards and accolades for us from the industry, which fuels our efficiency further.
For further information please contact:
Krishna Moorthy-9442191717 / David Francis-9884052528 / Murugan-9841278904
Sampark PR, Chennai.
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