All mutual fund investors investing in equity have this primary goal of achieving high returns. However, there are lots of investors who enter the mutual fund space with one equally important objective, i.e. tax saving. Investors who park their money in ELSS (Equity Linked Saving Scheme) mutual funds are allowed to avail of tax deduction benefits under Section 80C. In this story, we will discuss one such ELSS fund from SBI Mutual Fund – SBI Long Term Equity Fund – Regular Plan, and also review its performance on lump sum and SIP investments.
SBI Long Term Equity Fund, launched on March 31, 1993, is an open-ended ELSS with a statutory lock-in period of 3 years.
Also read: SBI Mutual Fund’s Top 5 Schemes: Up to 19% CAGR over 20-30 years! Rs 1 lakh grows to as much as Rs 1.3 cr
SBI Long Term Equity Fund key features:
Benchmark: BSE 500 TRI
Fund Manager: Dinesh Balachandran
Total Assets Under Management (AUM): Rs 27,797.95 crore (as on December 31, 2024)
Expense Ratio: Regular Plan – 1.60%
Riskometer level: Very High
Minimum Investment Amount: Rs 500
Lock-in Period: 3 years
Exit Load: No
Return since launch (CAGR): 16.97%
SIP returns (17 years): 15.95% annualised
At this rate of return, an SIP of Rs 10,000 would have turned into Rs 93 lakh in 17 years.
If we look at the fund’s performance on a lump sum basis, if someone had invested Rs 1 lakh 31 years ago when the scheme was launched, the total corpus would be now more than Rs 1.28 crore.
Fund’s returns over 1, 3, 5-year horizons:
1-year return: 18.98%
3-year return CAGR: 22.25%
5-year return CAGR: 22.66%
10-year return CAGR: 13.65%
(Source: SBI Factsheet, Value Research)
SBI Long Term Equity Fund’s top holdings:
Amongst its top holdings are some of India’s most prominent companies, including HDFC Bank, Mahindra & Mahindra, Reliance Industries, Bharti Airtel, and TCS. These industry leaders contribute to the fund’s strong performance and stability,
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