SBI Magnum Taxgain Scheme 1993: Efficiently managing market crashes

Magnum Taxgain has emerged as the prodigious son of the ELSS category — one that every investor would be extremely proud of owning. It has been ranked number one for three consecutive years from 2004 to 2006.

And along the way the fund has matured. Of late it has shown an ability to efficiently manage market crashes. In the June 2006 quarter, the fund lost just 11 per cent compared with the category’s loss of 15.35 per cent and again in the March 2007 quarter, it lost 4.06 per cent compared to the 6.45 drop in the category.

Since January this year the fund has been consciously reducing its exposure to technology and construction stocks. The exposure to construction has come down to 7.68 per cent in June 2007 from an earlier high of 16 per cent in December 2006.

Similarly, the allocation to tech is also down to 14.17 per cent in June from 18.5 per cent