Sbi Long Term Equity Fund

Invest in SBI Long Term Equity Fund effortlessly with just three easy steps and reap the benefits of your investment.

SBI long term equity fund: Duration of lock-in period?

When we compare this with other tax-saving instruments available under Section 80C, we find that ELSS has the shortest lock-in period. For example, if you invest in a tax-saving fixed deposit (FD), you will have to keep your money locked in for 5 years before being able to withdraw it. Similarly, if you choose to invest in Public Provident Fund (PPF), your money will be locked in for a much longer duration -15 years.

Frequently Asked Questions

Equity funds are investment plans that focus on investing in shares of companies with varying market values.

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

SEBI classifies listed companies according to their market capitalization, with large-cap funds focusing on the top 100 companies. Mid-cap funds target companies ranked between 101 and 250, while small-cap funds invest in those ranked from 251 onwards. Multi-cap funds have a broader approach, investing in companies across all three categories: small cap, mid cap, and large cap.

Understanding ELSS Funds

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

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What are Bluechip funds?

Bluechip funds are investment funds that primarily focus on investing in the stocks of established and financially successful companies. These companies have a proven track record of performing well over an extended period of time.

Understanding the lock-in period: SBI Long Term Equity Fund

The lock-in period refers to the duration during which your investment in a mutual fund is held without being accessible. While many mutual funds do not have any lock-in period, tax-saving schemes like ELSS typically have a lock-in period of three years, which is the shortest compared to other 80C investment options. The lock-in period starts from the date of investment and may vary for SIPs (Systematic Investment Plans).

Is KYC mandatory for BLACK?

KYC is mandatory for all mutual fund companies. If you are investing 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 your bank account to automatically deduct a fixed amount of money from your account every day for investing in a SIP portfolio. Once you have registered for the Mandate, you no longer need to go through the payment process each time you want to invest in the SIP.

The previous name of SBI long term equity fund?

SBI Long Term Equity Fund, formerly known as SBI Magnum Taxgain Scheme, is a mutual fund offered by the State Bank of India. This fund aims to provide long-term capital appreciation by investing in a diversified portfolio of equity and equity-related instruments. It offers investors the opportunity to save on taxes while potentially earning attractive returns.

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The SBI Long Term Equity Fund follows a growth-oriented investment strategy, focusing on companies with strong fundamentals and growth potential. The fund manager carefully selects stocks across various sectors based on thorough research and analysis. By investing in this fund, individuals can benefit from professional management expertise and diversification across different industries.

Does SBI long term equity fund have tax exemption?

Frequently Asked Questions (FAQ) for SBI Long Term Equity Fund – Regular Plan:

1. What is the tax benefit offered by SBI Long Term Equity Fund?

SBI Long Term Equity Fund offers tax exemption under Section 80C of the Indian income tax laws. According to this section, investments made in eligible securities up to Rs 1.5 lakh in a financial year are exempt from taxation.

2. How does the tax exemption work?

When you invest in SBI Long Term Equity Fund, you can claim a deduction on your taxable income for the amount invested, subject to a maximum limit of Rs 1.5 lakh per financial year. This means that if you invest up to Rs 1.5 lakh in this fund during a particular year, that amount will be deducted from your taxable income while calculating your taxes.

3. What are eligible securities under Section 80C?

4.What are some key features of SBI Long Term Equity Fund?

SBI Long Term Equity Fund is an open-ended equity scheme that aims for long-term capital appreciation through investments primarily in diversified stocks across market sectors.

It has a lock-in period of three years from the date of investment.

The fund provides investors with exposure to equities while also offering potential tax benefits.

Investors have the option to choose between growth and dividend payout options based on their preferences and requirements.

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Is it possible to withdraw funds from a long-term equity investment?

– ELSS investments are subject to tax, and if an investor withdraws the funds before three years, they will have to pay taxes on the gains.

– After completing the lock-in period of three years, gains up to Rs. 1 lakh are exempt from tax.

– Gains above Rs. 1 lakh are taxed at a rate of 10%.

Start date of SBI long term equity fund?

SBI Long Term Equity Fund Regular Growth is an equity – ELSS (Tax Savings) fund. The fund was launched on May 7, 2007.

1. Type: It is an equity – ELSS (Tax Savings) fund.

2. Launch Date: The fund was launched on May 7, 2007.

3. Objective: The primary objective of the fund is to provide long-term capital appreciation by investing in diversified equities and related instruments.

4. Tax Benefits: As an ELSS fund, it offers tax benefits under Section 80C of the Income Tax Act, allowing investors to claim deductions up to Rs.1.5 lakh from their taxable income.

5. Lock-in Period: Investments made in this scheme have a mandatory lock-in period of three years from the date of investment.

6. Investment Strategy: The fund follows a bottom-up approach for stock selection and focuses on companies with strong growth potential and sustainable business models.

7. Portfolio Diversification: SBI Long Term Equity Fund maintains a well-diversified portfolio across various sectors and market capitalizations to mitigate risks associated with individual stocks or sectors.

8. Performance Track Record: Investors can evaluate the historical performance of the fund through its NAV (Net Asset Value), which reflects its overall returns over time.