SBI Long-Term Equity Fund: Simple Way to Save Taxes

Introduction

Are you looking for a reliable investment plan that offers long-term wealth creation? Your wait is over here.The SBI Long Term Equity Fund is a way that helps investors to achieve their financial goals. It’s not only beneficial for wealth creation but it also offers tax benefits. Its unique approach to investing helped the fund generate positive results consistently and build trust across investors.

In this article, you’ll explore SBI Equity Mutual Fund. What is the growth investment strategy and how it can help you to grow your income regularly with a SIP? Keep reading on to get your all answers.

What is SBI Long-Term Equity Fund and How Does it Work?

The SBI long term equity fund regular growth is a type of mutual fund. It mainly invests in equity, bonds, and shares to gain capital appreciation. The fund is one of the equity funds that believes in long-term growth to create high returns and reduce risk. The current value of SBI long term equity fund NAV is ₹ 416.7552 as of January, 2025.

The fund also provides tax benefits as of section 80C of Income Tax. It helps investors to save taxes on their returns.

It targets individuals who are planning to invest for at least 3 or more years and, like tax benefits. If you’re looking for an investment plan that offers long-term wealth creation opportunities and saves taxes on your valuable returns. This SBI ELSS fund will be a great choice for you.

Investment Strategy of SBI Equity Fund

SBI Long Term Equity Fund follows a simple strategy of investing. It primarily invests in equities and securities that are associated with equities to gain capital appreciation.

It selects the stocks based on long-term growth and stability. The fund also invests a portion of its investment in leading companies. This investment allocation includes large-cap, mid-cap, and small-cap funds. The reason to invest in different-sized companies is to leverage the benefits that a specific type of company provides.

For example, large-cap companies provide stability and low risk. Mid-Cap provides great returns because it has room to grow significantly. The small-Cap is risky but it has a higher growth potential.

One way to track the fund’s success is by regularly reviewing the SBI long term equity fund NAV. It reflects the fund performance and helps you to choose the right fund.

One of the common problems that leads to loss is the dependence on just one sector. When a specific fund does not perform well, it can reduce the overall performance of your fund. But this problem does not persist with this fund.

It uses diversification, which means it spreads your investment across different stocks from various sectors. Because your investment is not just part of one sector, it will reduce the risk and increase the chances of higher returns.

Who Manage SBI Long-Term Equity Fund?

The person who managing the fund for the last 8 years is Dinesh Balchandran. He is the head of equity at the SBI Mutual Fund and has the expertise of managing portfolio and stock selection. He is one of the intelligent guys who graduated from an IIT and mastered his advanced education at MIT.

He has a deep understanding of the global finance market. He uses advanced research and fundamental analysis to select the right stocks. Over the past years, he provided positive results to investors. He manages the AUM with a value of 17,279 crores. He also contributes a significant role of increasing the NAV of SBI long term equity fund.

His core belief is to hold quality stocks for a long duration to benefit from compounding and value appreciation. If you don’t know about compounding, it is a way to grow the fixed amount regularly. This is the same concept SIP utilizes to grow the value of investment.

When it comes to picking profitable stocks, he prioritizes those companies that have strong management and provide a competitive advantage.

His leadership and amazing investment methods earned him a strong reputation.

Not only to grow wealth, but he also focuses on how to reduce risk as much as possible. If you want to invest in long-term and looking for secure hands then he is the one who came top in the list.

Who Should Invest in SBI Long-Term Equity Fund?

The SBI long term equity fund regular growth provides a value investment plan to grow your wealth, but still, it is not suitable for every individual. The fund provides several benefits, but at the same time few factors can also affect its performance.

If you invest in a fund that doesn’t align with your personal goals, then it can cause losses. Keeping in mind a few factors before investing in SBI Equity Fund can help you to choose better:

1. Tax-Saving Investors

The fund is an ELSS fund that provides tax deductions as of section 80C of Income Tax. If tax is something that highly matters to you, then you can invest in this mutual fund. It helps you to save taxes on your investment returns of up to 1.5 Lakh annually.

2. Long-Term Investors

The fund emphasizes the importance of long-term investment in generating high returns. For example, the fund offered a return of 22.04% in the last 3 years. If you invest 1 Lakh rupees of amount then your investment would be approx. 1,81,000 rupees. If you want to grow your wealth by investing the long-term then this fund is a great choice for you.

3. Systematic Investors

If your financial conditions don’t allow you to invest a big amount then this fund gives you a different choice of investment. It allows investment via a Systematic Investment Plan (SIP). That’s how you can start with a small amount and grow it as you are comfortable.

4. New Investors

If you’re a beginner and first-time investing, then this fund offers an exposure-diversified portfolio of large-cap, mid-cap, and small-cap. It makes a good starting point for new investors who are looking for professional fund management and to grow their investments.

However, the fund is focused on increasing the returns of long-term investors. But, if you don’t have a long timed horizon and risk tolerance, then it can lead to losses. To better understand the fund, you can analyse the NAV of SBI long term equity fund.

Conclusion

The SBI Long Term Equity Fund is a valuable investment plan that offers long-term growth and tax benefits. Whether you’re a seasoned investor or a beginner, the fund prioritizes both and only focuses on providing growth.

Its diversified portfolio ensures the investment in different types of companies, but it doesn’t make it risk-free. Volatility and market fluctuations can affect the fund performance. Before investing, identifying your financial goals will help you to choose a better plan.

One biggest reason most people hesitate to invest is their financial circumstances. Not every individual can invest high and looking for an investment plan that starts with a small amount. In this case, starting a SIP is a great way. It allows you to start with a small amount and it will grow it every year using compounding. That’s how you can start your investment journey easily.