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

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:

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.

3 comments:

Seenath Kumar said...

Thanks for this information. Hoping you will be there with more information on mutual funds.

savita said...

Hi,
I am a sbi magnum taxgain growth fundholder since feb 2008. In my understanding for mutual fund holders under the growth scheme the dividend amount should be added as units instead of dividend payoff. I dont see any units credited to my account nor have i received any divided. Can someone clarify if I should have received any extra units in lieu of dividend for the above scheme.

ONLINEMF said...

@Savita,

In growth scheme there are no dividends i.e dividends are not declared in such schemes. Dividend is a sepearate scheme.

So you have

1)SBI Magnum Taxgain (Growth)
AND
2)SBI Magnum Taxgain (Dividend).

which are sepearate schemes. You would have received Dividends if you had invested in 2)SBI Magnum Taxgain (Dividend)

There are 3 options
1)Growth: E.g Purchae Price NAV INR 10(YEAR 2008)current PRICE NAV INR 30. So INR 20 is your profit and value of investment is INR 10.

2)Dividend Payout: E.g Purchae Price NAV INR 10(YEAR 2008)current PRICE NAV INR 10. Dividend 2009 - INR 10.Dividend 2010 - INR 10.So INR 20 is your Dividend and value of investment is INR 10.

3)Dividend Reinvest: E.g Purchae Price NAV INR 10(YEAR 2008)current PRICE NAV INR 10. Dividend 2009 - INR 10.Dividend 2010 - INR 10.So INR 20 is your Dividend Reinvested and value of investment is little over INR 10.

In Dividend Reinvest your units are added to your account in lieu of your dividend not in Growth or Dividend Payout.

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