SBI Long Term Equity Fund, launched in 1993, has given 16.43% annual return in 32 years. Regular SIP has made investors crorepatis. With a monthly SIP of ₹1,000, the fund value has increased to more than ₹1.4 crore. Its AUM is ₹27,730 crore and NAV is ₹437.78.
Along with saving tax, if you invest for the long term, then mutual funds can become an excellent means of wealth creation for you. A great example of this is SBI Long Term Equity Fund, which was launched in 1993 and today after 32 years, this scheme has made crorepatis of those investors who did regular SIP in it. This fund was earlier known as SBI Magnum Taxgain Scheme and it is one of the oldest ELSS (Equity Linked Savings Scheme) in the country. Investing in this scheme provides tax exemption under section 80C and the lock-in period is only 3 years.
According to Business Today, if an investor had done a SIP of just ₹1,000 every month in this scheme, then by now his fund value would have been more than ₹1.4 crores. This figure shows how powerful long term investment done with discipline and the magic of compounding is.
The current NAV (Direct Growth) of SBI Long Term Equity Fund is ₹437.78 and its asset under management (AUM) has reached ₹27,730 crores. Dinesh Balachandran has been heading this scheme since September 2016. The fund invests primarily in equities and about 90% of its portfolio is invested in stocks, which include financial, technology, energy, healthcare and metals sectors. Its top holdings include HDFC Bank, Reliance Industries, ICICI Bank, Bharti Airtel and Hexaware Technologies.
In the last 32 years, this scheme has given an average annual return of 16.43%. This means that the investment doubled every three years. At the same time, in the last one year, it has given a return of 7.79%. If an investor did a SIP of ₹ 10,000 per month for just 3 years, then his total investment would be ₹ 4.6 lakh and the current value would reach around ₹ 6.65 lakh. That is, 20.93% annual return. SBI Long Term Equity Fund not only gives tax relief to investors, but has also become a reliable means of long term wealth building. Its long track record and strong management make it special compared to other ELSS funds.
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