So its time for financial year end and all you individuals are wondering about how and where to save taxes.
The salaried must have received the notices from their accounts and payroll department to submit tax saving investment proofs and others will be making their own calculations to work out how much taxes can be saved by investing in any tax saving scheme. SBI Magnum Taxgain Scheme: Review Analysis Details & Opinion
To take advantage of this situation, there are lots of advertisements of various tax saving schemes in the newpaper as well as television media. One such is about the SBI Magnum Taxgain Scheme, through which you can save tax by investing for 3 long years. Let's start with the basic details of the SBI Magnum Taxgain Scheme:What is the lock in period for investment in SBI Magnum Taxgain scheme?
being a tax saving investment product, the investment in SBI Magnum Taxgain Scheme will be locked for 3 long years. What this means is that you cannot withdraw any amount of money you invested from this SBI Magnum Taxgain Scheme till 3 years, from the date of your investment.
One other question arises - what if I invest in this mutual fund and do not claim tax benefit. Will I be able to withdraw my investment prior to 3 years?
The answer is no. Being a tax saving product, the lock in period applies to all - irrespective of whether you claim tax benefit or not.
What is the investment space for SBI Magnum Taxgain?
The SBI Magnum Taxgain will invest your money primarily in equities - that too usually of large cap stocks of the Indian Stock Market. This will be around 80% of the capital investment. Rest 20% is in debt and liquid money market instruments.
What is the minimum amount required for investing in SBI Magnum Taxgain?
You can invest in this scheme with as little as Rs. 500 and then in multiples of Rs. 500 only.
There is a SIP plan also available in SBI Magnum Taxgain.
What has been the historical performance of SBI Magnum Taxgain
SBI Magnum Taxgain is considered to be a good performer among the tax saving schemes. It's returns are claimed to be better than that of the Nifty.
Any benefit in investing in SBI Magnum Taxgain NOW?
Yes - SBI Magnum Taxgain has announced a dividend of Rs. 4 per unit with the record date of 18th March 2011. That means if you are in the list of investors of SBI Magnum Taxgain on 18th March, you will get back a cash dividend of Rs. 4 per unit.
This is like getting a portion of your locked in money earlier than 5 years. That's why you will see some ads in newspaper about SBI Magnum Taxgain now.
What are the other competitor products to SBI Magnum Taxgain
There is the SBI Tax Advantage Fund from SBI itself which can be considered.
Then there are several infrastructure bonds issues currently open which will provide you tax savings like PFC Infrastructure Bonds for Tax Saving and others. However, please note that lock in period for infra bonds is 5 years, not 3 years as is the case with several ELSS schemes like SBI Magnum Taxgain
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