Looking forward to getting the tax-free long-term capital gains, then you must go for investment in SBI Equity Savings Fund. The fund has been investing in various securities for capital growth as well as income generation for the long-term investors. The fund has been researched by the financial experts of MySIPonline over multiple parameters, whose details have been provided in the article further.
An Overview of SBI Equity Savings Fund:
Launched in the year 2015, the fund has an AUM of Rs 2,327 Cr as on Jul 31, 2018, and its expense ratio is 2.57%. The hybrid category fund, it invests 36% in equity, 30% in debt, and 32.35% in cash and cash equities. The investment in arbitrage is for providing regular income to the investors, who have invested in it for retirement purpose.
The debt part of SBI Equity Savings Growth Fund is investing in the unrated securities, A1+ securities, cash deposits and cash equivalents. The equity investment of the fund is in various sectors such as financial, automobile, energy, technology, FMCG sector, etc. The major investment of the fund is in the large-cap companies and mid-cap companies who are at the margin of the mid-caps.
Investing in debentures, certificate of deposits, non-convertible debentures, etc., the fund has an average maturity period of 3.5 years. The fund has a portfolio turnover ratio of 89%, which shows that the fund manager keeps churning the portfolio and securities of cash equivalents, to provide the best returns to investors.
Performance Analysis of SBI Equity Savings Fund (G)
The fund has been seen as a tax-efficient investment solution because the dividend paid by it is tax-free. Therefore, the investors who want to enjoy the tax-free equity solution can invest in the fund. It has been working efficiently to offer good returns to investors. It has given the returns of 8.05% since its launch.
SBI Equity Savings scheme was launched a few years back, has provided the returns of 6.2% in 2016 and 14.62% in 2017. These returns have outperformed its benchmark 35% Nifty 50 Arbitrage Index + 35% Nifty 50 + 30% CRISIL Liquid Fund Index as well as the category’s average. As per the fund managers of the fund, Mr Ruchit Mehta, who is managing equity as well as debt and Mr Neeraj Kumar, who is managing arbitrage investments, the AMC has a robust credit risk framework for the investors, which manages the risk in a prudent manner.
However, as per the financial experts of MySIPonline, the fund is a recent entrant in the mutual fund industry. It has delivered the compounded returns of 8.72% in the past three years, which was less than its benchmark but has outperformed the category’s average. So according to them, investors need to wait for sometime to know how the fund will perform in the future. Though, SBI Equity Savings Fund growth is a good fund for those who are looking for wealth creation in the long run.
An Overview of SBI Equity Savings Fund:
Launched in the year 2015, the fund has an AUM of Rs 2,327 Cr as on Jul 31, 2018, and its expense ratio is 2.57%. The hybrid category fund, it invests 36% in equity, 30% in debt, and 32.35% in cash and cash equities. The investment in arbitrage is for providing regular income to the investors, who have invested in it for retirement purpose.
The debt part of SBI Equity Savings Growth Fund is investing in the unrated securities, A1+ securities, cash deposits and cash equivalents. The equity investment of the fund is in various sectors such as financial, automobile, energy, technology, FMCG sector, etc. The major investment of the fund is in the large-cap companies and mid-cap companies who are at the margin of the mid-caps.
Investing in debentures, certificate of deposits, non-convertible debentures, etc., the fund has an average maturity period of 3.5 years. The fund has a portfolio turnover ratio of 89%, which shows that the fund manager keeps churning the portfolio and securities of cash equivalents, to provide the best returns to investors.
Performance Analysis of SBI Equity Savings Fund (G)
The fund has been seen as a tax-efficient investment solution because the dividend paid by it is tax-free. Therefore, the investors who want to enjoy the tax-free equity solution can invest in the fund. It has been working efficiently to offer good returns to investors. It has given the returns of 8.05% since its launch.
SBI Equity Savings scheme was launched a few years back, has provided the returns of 6.2% in 2016 and 14.62% in 2017. These returns have outperformed its benchmark 35% Nifty 50 Arbitrage Index + 35% Nifty 50 + 30% CRISIL Liquid Fund Index as well as the category’s average. As per the fund managers of the fund, Mr Ruchit Mehta, who is managing equity as well as debt and Mr Neeraj Kumar, who is managing arbitrage investments, the AMC has a robust credit risk framework for the investors, which manages the risk in a prudent manner.
However, as per the financial experts of MySIPonline, the fund is a recent entrant in the mutual fund industry. It has delivered the compounded returns of 8.72% in the past three years, which was less than its benchmark but has outperformed the category’s average. So according to them, investors need to wait for sometime to know how the fund will perform in the future. Though, SBI Equity Savings Fund growth is a good fund for those who are looking for wealth creation in the long run.
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