Sbi Equity Hybrid Fund Direct Growth

Invest in SBI Equity Hybrid Fund Direct Growth effortlessly with just three easy steps and reap the benefits of your investments.

SBI Equity Hybrid Fund Direct Growth: What is the interest rate?

1. The Current Net Asset Value (NAV) is the value of each unit of the SBI Equity Hybrid Fund – Direct Plan as of February 22, 2024. In simple terms, it tells us how much one unit of this fund is worth, and currently, it is valued at Rs 270.76 for the Growth option under its Direct plan.

2. Returns refer to the profits or gains made by an investment over a specific period. The trailing returns of the SBI Equity Hybrid Fund – Direct Plan are calculated for different time periods: one year, three years, five years, and since its launch.

– Over the past year (1yr), this fund has generated a return of 21.79%. This means that if someone had invested in this fund a year ago, they would have gained approximately 21.79% on their investment.

– Over the past three years (3yr), the return was 12.49%. So if someone had invested in this fund three years ago, they would have earned around 12.49% profit on their initial investment.

– Over a span of five years (5yr), this fund has provided investors with a return rate of about 15.29%, indicating that those who invested five years back would have gained around 15.29% on their original investment.

– Since its launch until now, which could be several years depending on when it started operating, investors in this fund have received an average return rate of approximately 14.97%.

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These returns give potential investors an idea about how well this mutual fund has performed historically and can help them make informed decisions regarding investing in it based on these figures.

Frequently Asked Questions

Hybrid funds are a type of mutual fund where the money you invest is divided by the fund manager between equity and debt in a specific proportion. This allocation ratio is determined at the time when the fund is introduced and remains unchanged thereafter.

Who should invest in a Balanced/hybrid fund?

Balanced funds are well-suited for investors with a medium-term investment horizon. These funds offer a combination of safety, income, and moderate capital appreciation. They are particularly beneficial for individuals seeking a balanced approach to their investments in India.

Who is suitable for investing in a Balanced/hybrid fund?

Balanced funds are a good option for investors with a medium-term investment plan. These funds offer a combination of safety, regular income, and moderate capital growth. They are particularly suitable for individuals who seek a balanced approach to their investments.

Understanding the lock-in period

The lock-in period refers to the duration during which your investment in a mutual fund cannot be withdrawn. While many mutual funds do not have a lock-in period, tax-saving schemes like ELSS have a minimum lock-in period of 3 years, making them one of the shortest among other options for claiming deductions under Section 80C. The lock-in period is calculated from the date of investment and may vary for SIPs (Systematic Investment Plans).

Is KYC mandatory for BLACK?

KYC is a mandatory requirement for all mutual fund companies. If you choose to invest through BLACK, you only need to complete your KYC process once. This same KYC will be applicable for any future investments as well.

Understanding the Mandate (Auto-SIP) Concept

A Mandate is a single registration that allows you to authorize your bank account to automatically deduct a specific amount of money from your account on a daily basis for investing in an SIP portfolio. Once you have registered for the Mandate, there is no need to go through the payment process every time you want to invest in the SIP.

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Is investing in SBI equity secure?

SBI Equity Hybrid Fund Direct Growth is a mutual fund offered by SBI that caters to investors looking for a diversified portfolio and long-term capital appreciation. The risk level of this fund tends to range from moderate to high, considering the inherent volatility of equity investments. This makes it suitable for investors who are willing to take on some level of risk in pursuit of potential higher returns.

Some key features and benefits of investing in SBI Equity Hybrid Fund Direct Growth include:

1. Diversification: The fund invests in a mix of equity and debt instruments, providing diversification across different asset classes. This helps reduce the overall risk associated with investing solely in equities.

2. Capital Appreciation: The primary objective of this fund is to generate long-term capital appreciation by investing primarily in equities while also generating income through debt instruments.

3. Professional Management: The fund is managed by experienced professionals who have expertise in selecting stocks and managing the portfolio effectively based on market conditions.

4. Flexibility: Investors have the flexibility to invest either as lump sum or through systematic investment plans (SIPs) based on their financial goals and investment preferences.

5. Tax Efficiency: Investing in this mutual fund can provide tax benefits under certain sections such as Section 80C, making it an attractive option for tax planning purposes.

6. Regular Income Generation: Along with capital appreciation, the debt component of the portfolio aims at generating regular income for investors through interest payments received from fixed-income securities held by the fund.

7. Liquidity: Being an open-ended scheme, investors can easily buy or sell units at any time during market hours, providing liquidity when needed.

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Is the safety of SBI Equity Fund guaranteed?

– Every mutual fund investment comes with a certain level of risk, and no AMC can provide an assurance of capital safety as returns are dependent on market fluctuations. However, SBI Mutual Fund is a renowned AMC in India that has been operating for nearly three decades.

– SBI Mutual Fund holds the distinction of being the largest mutual fund company in terms of Assets Under Management (AUM) in India.

– With its extensive experience and expertise, SBI Mutual Fund has gained the trust and confidence of investors over the years.

– The company offers various types of funds to cater to different investment objectives and risk appetites.

– One such offering is the SBI Equity Hybrid Fund Direct Growth option, which combines both equity and debt instruments to provide potential growth opportunities while managing risks effectively.

– By investing in this fund, investors can benefit from diversification across asset classes and potentially earn higher returns compared to traditional fixed-income investments.

Does the SBI equity hybrid fund have taxable implications?

Equity Hybrid Fund is a type of investment that combines both equity and debt instruments. It is suitable for investors with a holding period of more than one year, making it a long-term investment option. The gains generated from this fund are known as Long Term Capital Gains (LTCG).

When it comes to taxation, LTCGs are subject to a 10% tax rate per annum, along with an additional 4% cess. However, this tax is applicable only if the gains exceed INR 1 lakh. In other words, if your LTCG falls below INR 1 lakh in a financial year, you will not be liable to pay any taxes on those gains.

P.S. Equity Hybrid Funds offer investors the opportunity to diversify their portfolio by investing in both equities and debt instruments. This combination helps balance the risk-reward ratio and potentially provides stable returns over the long term.