SBI Long Term Equity Fund Direct Growth

SBI Long Term Equity Fund is an ELSS mutual fund. The fund allocates at least 80% of its assets to equity, preference shares and fully convertible debentures. The remaining is invested in money market instruments to maintain liquidity.

The fund enjoys tax benefits under Section 80C of the Income Tax Act. Investors can reduce their tax liability by up to ₹46,800. Investments in the SBI long-term fund are spread across large, small and mid-cap stocks to ensure the portfolio is well diversified. The fund has a mandatory lock-in period of 3 years.

Investment Strategy

The fund is actively managed by Dinesh Balchandran, who follows a bottom-up stock-picking approach along with fundamental analysis. The investment process involves identifying companies with strong business models and sound management. Each stock in the portfolio is selected after a deep evaluation of its financial health.

Who Should Invest In SBI Long Term Equity Fund - Direct Growth?

You should invest in the SBI long-term fund if:

-You are a first-time investor

-You are looking for tax benefits

-You want a diversified portfolio

Taxation on SBI Long Term Fund

Since equity-linked saving schemes have a lock-in period of 3 years, they are not subject to short-term capital gain (STCG). Any gains from selling the SBI long-term fund after 3 years are subject to long-term capital gain or LTCG at the rate of 12.5%.

Allocation & Historical Returns

Currently, the fund's portfolio comprises 9.1% small-cap stocks, 61.55% large-cap stocks, and 20.23% mid-cap stocks.

With an AUM of ₹28506.0 crores, SBI Long Term Equity Fund Direct Growth generated a return of 12.4% in 1 year, 29.2% in 3 years, 30.8% in 5 years. while its benchmark index (Nifty 500) generated 10.0% in 1 year, 18.7% in 3 years, and 24.5% in 5 years.