Sbi Long Term Equity Fund Direct Growth

Invest in SBI Long Term Equity Fund Direct Growth effortlessly by following a straightforward three-step investment process and reap the benefits of your investments.

What is the return of SBI long term equity fund last 3 years?

The investment has shown positive returns over various time periods. In the last year, it yielded a return of 57.87%. Over the past three years, it generated a return of 26.7%, while over five years, the return was 22.4%. Since its launch, the investment has provided a return of 17.13%.

These trailing returns indicate how well the investment has performed in different time frames. For example, if you invested in this product one year ago, you would have gained approximately 57.87% on your initial investment by now. This showcases strong growth potential and could be an attractive option for short-term investors looking for quick profits.

When evaluating investments based on their trailing returns like these examples above provide insight into historical performance but should not be relied upon solely when making decisions about future investments or predicting future market trends because past performance does not guarantee future results.

It is essential to consider other factors such as risk tolerance, diversification strategy and personal financial goals before investing in any particular asset class or fund type.

Frequently Asked Questions

Equity funds are investment schemes that primarily focus on investing in shares of companies with varying market capitalization.

Understanding Large Cap, Mid Cap, Small Cap and Multi Cap Equity Funds

SEBI categorizes listed companies according to their market capitalization. Large-cap funds focus on the top 100 companies, while mid-cap funds target those ranked between 101 and 250. Small-cap funds invest in companies ranked from 251st onwards. On the other hand, multi-cap funds have a more diverse approach as they invest in small cap, mid cap, and large cap companies.

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What are ELSS funds?

ELSS funds are mutual funds that offer tax benefits and primarily invest in equity schemes. These funds have a mandatory lock-in period of 3 years.

What is the meaning of Bluechip funds?

Bluechip funds are mutual funds that allocate their investments in stocks of established companies that have a proven track record of delivering strong financial performance over an extended period.

What is a lock-in period?

The lock-in period refers to the duration during which your investment in a mutual fund is not accessible. While many mutual funds do not have any lock-in period, tax-saving schemes like ELSS have a minimum lock-in period of 3 years, which is the shortest compared to other options for claiming deductions under Section 80C. The lock-in period starts from the date of investment and may vary for investments made through SIPs.

Is KYC mandatory for BLACK?

All fund houses require KYC documentation. However, if you choose to invest through BLACK, you only need to complete the KYC process once. This single KYC will be applicable for all future investments as well.

Understanding the Mandate (Auto-SIP) Concept

A Mandate is a single registration that allows your bank account to automatically deduct a set amount of money each day for investing in an SIP portfolio. Once you have registered for the Mandate, you no longer need to go through the payment process every time you want to invest in the SIP.

Does ELSS become taxable after 3 years?

Instead, ELSS funds offer the opportunity to earn long-term capital gains. These gains refer to profits made on investments held for more than one year. The Indian government provides tax benefits on long-term capital gains earned through ELSS funds. Currently, individuals can enjoy tax-free gains of up to Rs 1 lakh per year. Any profits exceeding this limit will be subject to a long-term capital gains tax rate of 10%.

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– ELSS funds have a lock-in period of three years.

– Short-term capital gains are not possible with these funds.

– Investors can earn tax-free long-term capital gains up to Rs 1 lakh per year.

– Gains above this limit attract a 10% long-term capital gain tax.

Which is superior: PPF or ELSS?

Equity investments have historically provided better long-term returns than fixed income instruments like PPF. This is because equities have the potential to generate capital appreciation over time. By investing in well-performing companies across various sectors, ELSS aims to maximize returns for its investors.

On the flip side, due to their exposure to equity markets, ELSS funds are subject to market fluctuations and can experience significant ups and downs in value. This means that investors may face periods of negative or low returns during volatile market conditions. Therefore, individuals considering investing in ELSS should be prepared for short-term fluctuations while keeping their long-term financial goals in mind.

What are the drawbacks of ELSS?

Here are some key points to consider about SBI Long Term Equity Fund Direct Growth:

– Limited liquidity: ELSS mutual funds like this one offer limited liquidity, meaning it may not be easy to withdraw your investment quickly if needed.

– Not suitable for risk-averse investors: Due to its higher-risk nature, this fund may not be a suitable option for those who prefer lower-risk investments.

– Limited benefits: While ELSS funds do offer tax benefits under Section 80C of the Income Tax Act in India, these benefits are subject to certain limitations and conditions.

– Management cost: Like any mutual fund, there will be management costs associated with investing in SBI Long Term Equity Fund Direct Growth.

What portion of ELSS is exempt from taxes?

One of the main benefits of investing in ELSS funds is the potential for long-term capital gains. Since these funds have a lock-in period, they encourage investors to stay invested for a longer duration. As a result, any profits made from selling the fund units after holding them for more than one year are considered long-term capital gains.

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– ELSS funds like SBI Long Term Equity Fund Direct Growth have a lock-in period of three years.

– They offer potential for long-term capital gains.

– Gains up to Rs 1 lakh per year are currently tax-free under Section 80C.

– Any earnings beyond this limit are subject to a flat rate of 10% as long-term capital gain tax

Does SBI Mutual Fund have a lock-in period?

Furthermore, as an equity-oriented mutual fund scheme, SBI Long Term Equity Fund Direct Growth primarily invests its assets in stocks and equities across various sectors and market capitalizations. The fund manager aims to generate long-term capital growth by carefully selecting fundamentally strong companies with growth potential.

It is important for investors considering SBI Long Term Equity Fund Direct Growth or any other ELSS scheme to evaluate their risk appetite before making investment decisions. Additionally, they should consider consulting with financial advisors or conducting thorough research about historical performance records and investment strategies employed by the fund managers.

What is the locking period of SBI?

The SBI Long Term Equity Fund Direct Growth has a lock-in period of 5 years, during which you are not allowed to withdraw funds from your fixed deposit (FD) account. This means that once you invest in this fund, you will have to keep your money locked in for a minimum of 5 years before being able to access it.

During the lock-in period, investors are unable to make any premature withdrawals or redeem their investments. This is an important feature of the SBI Long Term Equity Fund as it encourages long-term investment and discourages short-term trading or speculative behavior. By imposing this restriction, the fund aims to ensure stability and consistency in returns over a longer time horizon.

Investors should carefully evaluate their investment horizon before committing funds into the SBI Long Term Equity Fund Direct Growth. It is advisable only if they have a long-term perspective on wealth creation or specific financial goals that align with the duration of the lock-in period. Additionally, individuals must consider other factors like risk tolerance, diversification needs, and overall asset allocation while making investment decisions.