SIP Power in SBI Long Term Equity Fund: If you invest in equity, the high returns you get in it are your first priority. But you should also know that the returns on equity are also taxed. Therefore, the right strategy for investing is that you should keep in mind both returns as well as tax savings while investing your money. Tax benefits are available on investing in Equity Linked Savings Scheme i.e. ELSS category of mutual funds. There are many ELSS schemes in the market, which have given excellent returns to investors in the long term. One of these is SBI Long Term Equity Fund – Regular Plan (SBI Long Term Equity Fund -R) of SBI Mutual Fund. This scheme has given more than 140 times returns to investors since its launch.
Talking about SBI Long Term Equity Fund, being an ELSS category scheme, it has a lock-in period of 3 years. However, you can hold this scheme for as long as you want. This fund has given bumper returns to investors in the long term. SBI Long Term Equity Fund was launched on 31 March 1993. Since its launch, it has given returns at the rate of 17.01 percent per annum.
Highest Return: 5 mutual funds which increased money 7 to 8 times in 10 years, got absolute return up to 757%, also became topper in SIP
Investment of Rs 1 lakh turned into Rs 1.41 crore
According to SBI Mutual Fund Fact Sheet, since its launch, this scheme has given returns at the rate of 17.01 percent per annum. If someone invested Rs 10,000 in it after its launch, its value has now become Rs 14,14,235. That means this fund converted an investment of Rs 1 lakh into Rs 1.41 crore. This is an investment that increases an investor’s money 141 times.
return performance
1 year return: 54.1%
Value of investment of Rs 1 lakh: Rs 1,54,460
3 year return: 27.37% per annum
Value of investment of Rs 1 lakh: Rs 2,06,780
5 year return: 27.04% per annum
Value of investment of Rs 1 lakh: Rs 3,31,310
Returns since launch: 17.01% per annum
Value of investment of 1 lakh: Rs 14,14,235
Top SIP Return: HDFC MF’s super scheme, 195 times return on one time investment, Rs 2 crore from SIP of Rs 1000
Performance of benchmark BSE 500 TRI
1 year return: 40.85%
Value of investment of Rs 1 lakh: Rs 1,41,110
3 year return: 18.39% per annum
Value of investment of Rs 1 lakh: Rs 1,66,000
5 year return: 22.38% per annum
Value of investment of Rs 1 lakh: Rs 2,74,860
SIP return performance
SIP return data on value research in SBI Long Term Equity Fund is available for 17 years. This scheme has given returns of about 16 percent per annum to investors doing SIP in 17 years. In this, the value of a monthly SIP of Rs 10,000 with an upfront investment of Rs 1 lakh increased to more than Rs 1 crore in 17 years.
Monthly SIP: Rs 10,000
Upfront Investment: Rs 1,00,000
Duration: 17 years
Annualized Return: 15.99%
Total investment in 17 years: Rs 21,40,000
Value of SIP in 17 years: Rs 1,05,60,053
Cost Effective SIP: 5 mutual funds that are economical in investment but strong in returns, are increasing money in SIP at the rate of 25 to 29%
Features of the fund
Total AUM: Rs 28,733 crore (September 30, 2024)
Expense ratio of regular plan: 1.59% (September 30, 2024)
Expense ratio of direct plan: 0.99% (September 30, 2024)
Minimum lump sum investment: Rs 500
Minimum SIP: Rs 500
Exit load: none
Objective of the scheme: Long term capital appreciation and tax saving
Fund’s top holdings
HDFC Bank: 4.47%
Mahindra and Mahindra (M&M)
Reliance Industries (RIL)
Bharti Airtel
ICICI Bank
Torrent Power
Tata Motors
ITC
SBI
TCS
SIP Return: Top 5 mutual funds in 15 years in returns, all made Rs 1 crore from SIP of Rs 10 thousand, money increased 18 times in lump sum
Sector Allocation (% Investment)
Financial Services: 27.15%
Information Technology: 13.82%
Consumer Discretionary: 12.65%
Industrial: 12.03%
Energy and Utility: 7.79%
Material: 7.65%
For whom is this scheme suitable?
SBI Long Term Equity Fund can be the right option for investors who want to invest for tax saving and long term capital growth. To get full benefit of investment in this scheme, preparation for long term investment should be done. Although the lock-in period in this scheme is only 3 years, but this scheme is not suitable for investors who want to invest for less than 5 years. Since it is a scheme with ‘very high’ risk level, you must assess your risk tolerance while investing in it. Also remember that investing through SIP helps in reducing the risk.
(Disclaimer: The purpose of this article is only to provide information, it is not an advice to invest in any scheme. Take any investment decision only after getting complete information about the scheme and taking the opinion of your investment advisor.)
