SBI Long Term Equity Fund – Direct Growth
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Invested Amount--
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Wealth Gained--
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Expected Amount--
Scheme Performance
| 1Y | 1Y | 3Y | 3Y | 5Y | 5Y | Max | Max | |
|---|---|---|---|---|---|---|---|---|
| Trailing Returns | 33.5% | 29.4% | 17.4% | 15.3% | ||||
| Category Average | 19.3% | 24.3% | 15% | - |
Scheme Allocation
Advance Ratio
Exit Load
| Exit Load | Nil |
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Fund Objective
The SBI Long Term Equity Fund is a diversified Equity Linked Saving Scheme (ELSS), a type of mutual fund that offers tax benefits to investors. Formerly known as the SBI Magnum Taxgain Scheme, it was launched by SBI Mutual Fund on 31st March 1993.
The SBI Long Term Equity Fund distributes the majority of its investments across the financial services, IT, automobile and auto components, capital goods, healthcare, and oil, gas & consumable fuels sectors. It is managed by Dinesh Balachandran.
The scheme’s objective is to provide investment benefits by investing in a diverse portfolio of equity shares while offering tax deductions under section 80C of the Income Tax Act, 1961. The scheme also intends to distribute income periodically based on the available surplus.
The SBI Long Term Equity Fund invests at least 80% of its assets in equities, cumulative convertible preference shares, fully convertible debentures, and bonds. It has the flexibility to invest up to 20% of its assets in money market instruments. The scheme requires a 3-year statutory lock-in to avail of section 80C tax benefits.
Pros & Cons
Pros |
Cons |
| 1-year and 3-year annualised returns for the SBI Long Term Equity Fund are above the category average and its benchmark, the S&P BSE 500 TRI Index. | The SBI Long Term Equity Fund has a lock-in period of 3 years, making it less liquid. |
| The scheme has a lower 3-year standard deviation than its category average, resulting in less volatile returns. | 5-year annualised returns for the SBI Long Term Equity Fund are lower than the category average and its benchmark, the S&P BSE 500 TRI Index.
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| The scheme has had a higher Sharpe ratio in the past 3 years compared to its category average, indicating that it has provided increased returns for each unit of additional risk. | The scheme has an information ratio of 0.35, which suggests it hasn’t consistently outperformed the benchmark index considering the risk taken. |
Who should invest in SBI Long Term Equity Fund?
The SBI Long Term Equity Fund is suitable for investors having a long-term investment horizon and seeking capital appreciation through exposure to equities. The scheme’s portfolio consists predominantly of equity shares that provide an opportunity for the investor to participate in the stock market.
Furthermore, investments made in the scheme qualify for a tax deduction under section 80C of the Income Tax Act, 1961, making it a tax-efficient investment option.
The scheme is a respected investment option in the Equity-Linked Saving Scheme (ELSS) category, recognised for its consistent performance and cost-effectiveness. The scheme has outperformed the S&P BSE 500 TRI Index and its category average over the past three years. In addition, it has a notable track record with a 13.7% Compound Annual Growth Rate (CAGR) since inception, representing its annualised growth rate over time.
The SBI Long Term Equity Fund is appropriate for investors with a long-term investment horizon of at least 3 years and a very high tolerance for risk. However, if your investment goals do not align with these characteristics, it may be more suitable to consider alternative investment options.
What are the benefits of investing in the SBI Long Term Equity Fund?
● Investing in the SBI Long Term Equity Fund offers tax deductions of up to 1.5 lakhs yearly under section 80C, making it a compelling investment option for those seeking both capital appreciation and tax benefits.
● The scheme has a mandatory lock-in period of 3 years, promoting long-term investing and discouraging short-term speculative behaviour.
● The SBI Long Term Equity Fund has outperformed its benchmark and category average for the last 3 years.
● The scheme invests in a diversified portfolio of stocks, reducing the risk associated with investing in individual stocks.
● Its large Assets Under Management (AUM) represent a significant level of investment interest, contributing to the scheme’s stability, lower operational costs, and a positive perception among investors.
● The absence of an exit load in the SBI Long Term Equity Fund allows investors to redeem their units without incurring additional charges.
Fund Managers
Dinesh Balachandran
Mr Dinesh Balachandran joined SBI MF as a Senior Credit Analyst in 2012 and currently holds the position of Head of Research. He currently manages an AUM of INR 38,525 crores. At SBI MF, Mr Balachandran manages SBI Balanced Advantage Fund, SBI Contra Fund, SBI Long Term Equity Fund, and SBI Multi-Asset Allocation Fund. Before joining SBI MF, he worked with Fidelity in the US.
Risk-O-Meter
Peer Comparison
- Fund Name
- Fund Size
- 1Y
- 3Y
- 5Y
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- Equity .
- ELSS .
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- 5,246
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24.8%Fund Size - 5,246
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30.4%Fund Size - 5,246
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15%Fund Size - 5,246
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- Equity .
- ELSS .
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- 12,543
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22.1%Fund Size - 12,543
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29.3%Fund Size - 12,543
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11.9%Fund Size - 12,543
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- Equity .
- ELSS .
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- 1,084
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19.1%Fund Size - 1,084
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26.4%Fund Size - 1,084
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14.5%Fund Size - 1,084
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- Equity .
- ELSS .
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- 4,088
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23%Fund Size - 4,088
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26.3%Fund Size - 4,088
-
17.9%Fund Size - 4,088
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- Equity .
- ELSS .
-
- 11,227
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18.2%Fund Size - 11,227
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25.7%Fund Size - 11,227
-
14.2%Fund Size - 11,227
AMC Contact Details
Frequently Asked Questions
How to invest in SBI Long Term Equity Fund – Direct Growth ?
- Login to your 5paisa account, Go to the Mutual Funds section.
- Search for SBI Long Term Equity Fund – Direct Growth in the search box.
- Click on "Start SIP" if you wish to do a SIP or click on “One-time” if you wish to invest a lumpsum amount then click on "Invest Now"
What is the NAV of SBI Long Term Equity Fund – Direct Growth ?
How to redeem SBI Long Term Equity Fund – Direct Growth holding ?
What is the minimum sip amount of SBI Long Term Equity Fund – Direct Growth?
What are the top sectors SBI Long Term Equity Fund – Direct Growth has invested in?
- Banks - 18.06%
- Pharmaceuticals & Biotech - 7.85%
- Automobiles - 6.45%
- Industrial Products - 6.41%
- Petroleum Products - 5.88%
Can I make investments in both the SIP and Lump Sum schemes of SBI Long Term Equity Fund – Direct Growth?
How much returns have SBI Long Term Equity Fund – Direct Growth generated ?
What is the expense ratio of SBI Long Term Equity Fund – Direct Growth ?
What is the AUM of SBI Long Term Equity Fund – Direct Growth?
What are the top stock holdings of SBI Long Term Equity Fund – Direct Growth?
- ICICI Bank - 4.56%
- Larsen & Toubro - 4.28%
- HDFC Bank - 4.28%
- M & M - 3.45%
- Bharti Airtel - 3.06%
How can I redeem my investments in SBI Long Term Equity Fund – Direct Growth?
Step 2: Log in to your account by adding Folio No. and M-Pin
Step 3: Click on Widhrawal > Redemption
Step 4: Select SBI Long Term Equity Fund – Direct Growth in Scheme, enter the redemption amount, and click on submit button.
Is there any lock-in period for SBI Long Term Equity Fund - Direct Growth?
Yes, there is lock-in period for SBI Long Term Equity Fund – Direct Growth.