SBI Equity Hybrid Fund – Direct Growth

SBI Mutual Fund’s SBI Equity Hybrid Fund Regular Growth is a hybrid mutual fund scheme. It was established on December 31, 1995, and is now handled by R. Srinivasan and Dinesh Ahuja. The SBI Equity Hybrid Fund Regular Growth has returned an average of 15.46% annually since its inception. The minimum investment needed is Rs 1,000, while the minimum incremental investment required is Rs 1,000. The minimum SIP investment is Rs 500.

By investing in a combination of debt and equity, the SBI Equity Hybrid Fund hopes to offer investors the potential for long-term capital appreciation together with the liquidity of an open-ended scheme. The fund’s investments are spread out over a variety of high-growth firms’ equities and some safer fixed-income assets. SBI Equity Hybrid Fund invests at least 65% of its assets in equities and equity-related securities. At any one moment, the fund will invest between 20% and 35% of its assets in debt and money market securities.

The fund’s investment strategy and goal are to offer investors with long-term capital appreciation and the flexibility of an open-ended scheme via a diversified portfolio of debt and equity investments. High-growth company stocks will make up the bulk of the scheme’s equity investments, with fixed-income securities providing a risk-offsetting buffer.

Pros & Cons

Who should invest in SBI Equity Hybrid Fund Regular Growth?

Anyone who satisfies the following requirements or maintains the following standards can invest in this fund:

• Investors that are looking for capital appreciation over a prolonged period
• Investors that are looking to minimise their exposure to risk
• In addition, the scheme is appropriate for novice investors who lack prior expertise in trading in turbulent market conditions.
• Investors should have risk appetites that range from moderately high to high.
• When considering this opportunity, prospective investors should have a minimum investment horizon of 3 to 5 years.

What are the benefits of investing in the SBI Equity Hybrid Fund Regular Growth?

The SBI Equity Hybrid Fund Regular Growth has an impressive performance record over the long term.

• Compared to other asset types, equity offers the greatest potential for wealth generation over the long term. The programme invests between 65 and 80% of its assets in equities.
• The debt component of the plan helps to mitigate potential losses and maintains stability even in highly turbulent market circumstances.
• If the stock market declines owing to risk factors, the scheme should be able to control volatility and create long-term capital appreciation for investors.
• Units purchased before January 31, 2018, and sold on or after April 1, 2018, are free from long-term capital gains tax (LTCG) on any capital gains realised before April 1, 2018. The mutual fund will cover the DDT.
• While the investor is exempt from paying dividend tax, 11.648% (10% + 12% surcharge + 4% Health & education cess) is withheld from dividend payments before they reach the investor’s account.