SBI Magnum Tax Gain MF

johnjethi 1
Viewed 1881

Hi Pankaj,

I have an monthly SIP of Rs. 2000 going on with SBI Magnum Tax Gain fund since June 2006. The appreciation of the fund NAV was quite good in the initial years and even after the recession phase of 2008 and early 2009. Hence I continued investing in the fund. However, off late the I see more or less flat returns on my investments. Should I hold onto the fund or start withdrawing my money.

I have one more query on the future of ELSS funds post DTC implementation in 2012. I have an monthly SIP of Rs. 2000 going on with HDFC Tax Saver fund since Oct 2007. The performance of this fund has been good throughout the period of my investment. Can I expect similar performance post DTC implementation as well?

John

elss sip mutual-fund tax-saving
1 Answers

SBI Magnum tax gain was one of the top funds for many years, but in last 2-3 years, some of the funds have outperformed it.

Some of the better funds at this time are:
Canara Robeco Equity Tax Saver
HDFC Taxsaver
Franklin India Taxshield
DSPBR Tax Saver
Fidelity Tax Advantage

If three years have been completed on this fund, you may withdraw and invest the amount into better equity funds.

After DTC implementation, most probably tax saving funds will be converted into normal open ended equity funds. After lock-in finishes, you may switch the investment to diversified equity mutual funds.

Pankaj Batra5212
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