SBI Investment Plan - SBI Magnum Taxgain Scheme

SBI Magnum Tax Gain Scheme was launched in 1993 to offer an choice of investment as well as to get income tax rebates as per Section 80 C of Income tax Act, 1961. It also declares dividends frequently based on the performance of the state bank mutual fund. SBI mutual fund systematic investment plan is also available for this scheme with a minimum investment amount of Rs 500 per month.

The fund managers have invested 80 to 100% of the amount in equities which has medium to high risk profile. The rest 0 to 20% of the amount has been invested in money market instruments which has a very low risk profile.

Features:

* This scheme has a lock in period of three years i.e. for 3 years from the date of investment, the investor cannot withdraw his money from the scheme. This condition is as per Income tax act of 1961. This condition strictly applies to the investor even if the investor does not claims his income tax rebate as per section 80c.

* This scheme has two options for investing i.e. dividend and growth. If the investor chooses dividend option he can either ask for dividend reinvest option or dividend payout option. If the investor chooses dividend payout option, then the dividends declared will be paid to the investor immediately. If the investor chooses dividend reinvest option, then the dividends accumulated for the particular investor will be reinvested to buy more units of that particular scheme and an updated statement will be sent to the investor.