This ELSS From SBI MF Has Offered Good Returns; Is It Good For SIP?

NAV	Fund Size	Expense Ratio
₹240.12	₹ 10911.91 Cr	1.20%

NAV as on 02 February 2022

SBI Mutual Fund's SBI Long Term Equity Fund Direct Plan-Growth is an ELSS mutual fund strategy. The fund was launched on January 1, 2013. As of 31/12/2021, SBI Long Term Equity Fund Direct Plan-Growth has an AUM of 10,912 crores, making it a medium-sized fund in its category. As of 31 December 2021, the fund's fee ratio is 1.2%, which is comparable to the expense ratios charged by most other ELSS funds.

SBI Long Term Equity Fund Direct Plan has a 1-year growth rate of 26.27%. The fund is invested in Indian equities to the tune of 96.13%, with 62.48% in large-cap, 18.92% in mid-cap stocks, and 9.06% in small-cap stocks. ICICI Bank Ltd., Infosys Ltd., Tech Mahindra Ltd., Larsen & Toubro Ltd., and Reliance Industries Ltd. are the fund's top five holdings.

Is it good for investment?

The scheme invests in stocks, cumulative convertible preference shares, and fully convertible debentures and bonds in the hopes of gaining capital appreciation. Investors intending to invest for at least three years and who want the added advantage of income tax savings in addition to greater expected profits. At the same time, these investors should be prepared for the prospect of moderate investment losses as well as a three-year lock-in period.

The ability of the SBI Long Term Equity Fund Direct Plan-Growth plan to provide consistent returns is comparable to that of other funds in its category. It has an average capacity to control losses in a sinking market. The majority of the money in the fund is invested in the financial, technology, construction, energy, and healthcare industries. In comparison to other funds in the category, it has less exposure to the Financial and Technology industries. On risk factor, the fund is moderately high risk. As of 31 December 2021, the Fund has been ranked 3 by CRISIL and given 3 stars. Also, its performance is average among its peers.
What can You Expect from the Investment?

Tax Benefit

You may expect profits that easily outperform inflation as well as returns from fixed-income choices if you invest for five years or longer. Furthermore, there is a tax benefit. As it is an ELSS fund, which makes your investments qualify for tax benefit up to Rs 1.5 lakh under Section 80C of the Income Tax Act, 1961.

Absolute and Annualised Returns Over the Years

On the investment of Rs 10,000, the fund has offered the following returns:

Period Invested for	Absolute Returns	Annualised Returns	Category Avg
1 Year	26.27%	26.27%	36.09%
2 Year	57.10%	25.22%	28.39%
3 Year	69.08%	19.09%	22.91%
5 Year	95.77%	14.37%	16.61%
Since Inception	253.80%	14.91%	17.13%

SIP Returns Over The Years

On the SIP of Rs 1,000, the fund has offered the following returns:

Period Invested for	Absolute Returns	Annualised Returns
1 Year	12.37%	23.49%
2 Year	41.27%	37.04%
3 Year	49.17%	27.69%
5 Year	57.90%	18.29%

Disclaimer

Mutual fund investments are subject to market risk. Read all scheme-related documents, Terms and Conditions carefully before investing. The above-mentioned information is purely informational and carried forward from MoneyControl, and ValueResearch . The Greynium Information Technologies and the Author are not liable for any losses caused as a result of a decision based on the article.