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.
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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, making it a reliable choice for long-term investors.
Sectoral allocation:
The sector allocation of the fund is well-diversified, with the highest exposure to Financial Services at 27.15%, followed by Information Technology at 13.82%. Consumer Discretionary accounts for 12.65%, while Industrials make up 12.03% of the portfolio. Additionally, Energy and Utility sectors hold a 7.79% share, ensuring a balanced mix of investments across key growth-oriented industries.
Also read: SIP Return: THIS top-rated small cap mutual fund turned Rs 100 daily investment into Rs 1.33 crore!
Who should invest in SBI Long Term Equity Fund?
The SBI Long Term Equity Fund is ideal for investors seeking long-term growth combined with tax-saving benefits. However, as this fund falls under the ‘very high’ risk category, it is important for investors to assess risk tolerance before investing.
Disclaimer: The above content is for informational purposes only. Mutual Fund investments are subject to market risks. Please consult your financial advisor before investing. FinancialExpress.com does not endorse any specific investment instruments. Readers are encouraged to make their own informed decisions, as any losses incurred will be their sole responsibility.
