There are many such schemes in the market, where you get the benefit of tax on investing. However, while investing money, it should also be kept in mind that your money should not be blocked for a long time. Also, you can get high return on your investment.
SBI Long Term Equity Fund: There are many such schemes in the market, where you get the benefit of tax on investing. There are many such schemes from post office, bank to capital market. However, most of the schemes also have lock-in rules, where money cannot be withdrawn before a time. Therefore, while investing money to save tax, it should also be kept in mind that your money should not be blocked for a long time. Also, you can get high return on your investment. If you are looking for a similar scheme, then investing in Equity Linked Savings Scheme ie ELSS category of mutual funds can give you better returns. There are many such ELSS schemes in the market, which have given great returns to the investors over a long period of time. One of these is SBI Long Term Equity Fund scheme of SBI Mutual Fund.
21% CAGR in 20 years
SBI Long Term Equity Fund has given tremendous returns to investors over a long period. This fund was launched on 31 March 1993. Since its launch, it has given returns at a CAGR of 16.34 per cent. Here in 20 years, investors have got 21% CAGR returns. In 20 years, this fund has made investors’ money almost 50 times. That is, those who had invested Rs 1 lakh here, their money has exceeded Rs 50 lakh in 20 years. At the same time, those who did a monthly SIP of Rs 500 in 20 years got a fund of Rs 1 crore.
A minimum lump sum investment of Rs 500 can be made in this fund. At the same time, the minimum SIP is also Rs 500. The good thing is that its lock-in period is only 3 years. The total assets of the fund as on 31st December 2021 is Rs 10192 crores. Whereas till the same date the expense ratio is 1.75 per cent.
Fund’s 10-year, 15-year performance
15 Year Return: 11% CAGR
Value of investment of Rs 1 lakh: Rs 4.74 lakh
Value of Rs 5000 Monthly SIP: Rs 26 lakh
10 Year Return: 15%
Rs 1 lakh Value of investment: Rs 4 lakh
Value of Rs 5000 Monthly SIP: Rs 12.5 lakh
In which stocks do you invest your money?
Top holdings of SBI Long Term Equity Fund include ICICI Bank, Infosys, Tech Mahindra, Larsen & Toubro, Reliance Industries, ICICI Prudential Life Insurance Co., State Bank of India, HDFC Bank, Cipla and Cummins India.
Best and worst performance
The best performance of HDFC Long Term Advantage Fund was from March 9, 2009 to March 11, 2010. Meanwhile, the fund has given excellent returns of around 110 per cent. On the other hand, the fund performed the worst between December 4, 2007 and December 3, 2008. During this the return of the fund is -57 per cent.
(source: value research)
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