SBI Long Term Equity Fund-Growth: The main purpose of the scheme is to provide a return on investment in the portfolio of equity shares, while the Income Tax Act, of 1961 provides for a tax deduction for investments made in the scheme under Section 80C. Depending on the distributable surplus. (SBI Long Term Equity Fund-Growth)
SBI Long Term Equity Fund-Growth
Financial Highlights
- The current net asset value of SBI Long Term Equity Fund as on 27 May 2022 is Rs.206.2154 for its regular plan development option. (SBI Long Term Equity Fund-Growth)
- Its lagging returns in different periods: 9.96% (1 year), 14.44% (3 years), 9.26% (5 years) and 15.92% (since inception). Meanwhile, category returns for the same period: 9.06% (1 year), 14.44% (3 years) and 10.17% (5 years).
- SBI Long Term Equity Fund is currently ap. 30,2022 with assets worth Rs.10575.29 crore under management.
- Apr. The cost-effectiveness ratio for the regular project on 30, 2022 is 1.86%.
- A given fund will not attract any exit burden. (SBI Long Term Equity Fund-Growth)
- Minimum investment is Rs.500 and minimum additional investment is Rs.500. Minimum SIP investment is Rs.500
Investment Details
| Minimum Investment (₹) | 500.00 |
| Minimum Addl Investment (₹) | 500.00 |
| Minimum SIP Investment (₹) | 500.00 |
| Minimum Withdrawal (₹) | 500.00 |
| Exit Load | 0% |
About Fund
- SBI Long Term Equity Fund is an Open-ended ELSS Equity scheme that belongs to SBI Mutual Fund House.
- The fund was launched on May 07, 2007. (SBI Long Term Equity Fund-Growth)
Investment Purpose & Benchmark
- The investment objective of the Fund is, “The scheme seeks capital valuation through investments in stocks, aggregate convertible preferred stocks and fully convertible debentures and securities. The scheme was converted into an open plan in November 1999.” (SBI Long Term Equity Fund-Growth)
- It is rated against the S&P BSE 500 Total Earnings Index.
Property Assignment & Portfolio Combination
- The fund’s asset allocation includes approximately 94.36% in equities, 0.0% in debt and 5.64% in cash and cash equivalents.
- The top 10 equity holdings account for about 37.13% of assets, while the top 3 sectors account for approximately 40.64%. (SBI Long Term Equity Fund-Growth)
- The fund mostly adopts mixed based investment style and invests in market capitalization – about 62.28% in big & big cap companies, 28.14% in mid cap and 9.59% in small cap companies.
Tax impacts
- Short Term Capital Gains Tax – STCG is not applicable for ELSS plans as their lock-in period is 3 years.
- Investing in ELSS schemes is eligible for tax deduction under Section 80C of the Indian Income Tax Act.
- Gain over Rs. 10% per 1 lakh (Long Term Capital Gains Tax – LTCG) will be levied after 3 years.
- For dividend distribution tax, the dividend income from this fund will be added to an investor’s income and taxed according to his / her respective tax brackets. (SBI Long Term Equity Fund-Growth)
- Also, dividend income above Rs. 5,000 in a financial year; Fund House is required to deduct 10% DTS on such income.
About SBI
SBI Long Term Equity Fund-Growth: State Bank of India (SBI) is a bank sector company. The total valuation (market value) of the company is ₹4,18,564 crore. The price of one share of the company is ₹469.00 in the BSE market and ₹468.95 in the NSE market. The State Bank of India was established in the year 1806. (SBI Long Term Equity Fund-Growth)
As per the report provided by the company, the total income for the last year stood at Rs 3,02,545.07 crore and the total sales stood at Rs 2,57,323.592 crore. The company’s net profit stood at Rs 14,488.111 crore. State Bank of India has paid tax of Rs -13,102.327 crore in the current year. (SBI Long Term Equity Fund-Growth)
PROS
- Company has delivered good profit growth of 166.64% CAGR over last 5 years
CONS
- Company has a low-interest coverage ratio.
- The company has delivered a poor sales growth of 4.70% over the past five years.
- Company has a low return on equity of 10.06% for the last 3 years.
- Contingent liabilities of Rs.1770797.16 Cr.
- Company can capitalize the interest cost
- Earnings include another income of Rs.109582.01 Cr.
Frequently Asked Questions (FAQs)
Q: Is it safe for SBI to invest in a long-term equity fund?
A: According to SEBI’s latest guidelines for calculating risk grades, investing in SBI long-term equity funds falls under the highest risk category.
Q: What is the type of SBI long-term equity fund?
A: SBI Long Term Equity Fund, Equity: belongs to the ELSS type of fund.
Q: How long should I invest in an SBI long-term equity fund?
A: The recommended investment limit for investing in an SBI long-term equity fund is> 3 years. The recommended investment horizon is the minimum time required to hold investments in the fund, which minimizes its negative risk and ensures that the return is highly predictable.
Q: Who manages the SBI Long Term Equity Fund?
A: SBI Long Term Equity Fund is managed by Dinesh Balachandran (since Sep 10, 2016).
Investment objective & Benchmark.
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