SBI Long Term Equity Fund is an open-ended equity-linked Linked Savings Scheme (ELSS) offering tax benefits under Section 80C of the Income Tax Act, 1961.
Launched on March 31, 1993, it aims to provide long-term capital appreciation through a diversified portfolio of equity and equity-related instruments. This fund suits investors looking for tax planning and potential long-term capital growth.
SBI Long Term Equity Fund – Details
- Scheme Type: Open-ended ELSS
- Risk Level: Very High
- AUM: ₹23,892.75 Cr
- Inception Date: 31 Mar 1993
- Benchmark: S&P BSE 500 TRI
- Expense Ratio: 1.62%
SBI Long Term Equity Fund – Investment Strategy
The fund primarily invests in equities, focusing on long-term capital growth.
- Minimum 80% of its assets in equity and equity-related instruments.
- Up to 20% in money market instruments.
Performance Overview
| Period Invested for | ₹10000 Invested on | Latest Value | Absolute Returns | Annualised Returns | Category Avg | Rank within Category |
| 1 Week | 17-May-24 | 10143.30 | 1.43% | – | 1.36% | 29/60 |
| 1 Month | 24-Apr-24 | 10401.70 | 4.02% | – | 3.65% | 22/60 |
| 1 Year | 24-May-23 | 16055.50 | 60.55% | 60.35% | 40.85% | 3/59 |
| 2 Year | 24-May-22 | 19614.70 | 96.15% | 39.99% | 28.13% | 1/55 |
| 3 Year | 24-May-21 | 20716.60 | 107.17% | 27.45% | 20.93% | 8/55 |
| 5 Year | 24-May-19 | 27524.60 | 175.25% | 22.42% | 19.46% | 15/53 |
| 10 Year | 23-May-14 | 45904.70 | 359.05% | 16.44% | 15.27% | 7/27 |
| Since Inception | 31-Mar-93 | 399865.10 | 3898.65% | 12.56% | 16.91% | 50/58 |
SBI Long Term Equity Fund – Risk Ratios
| Ratio | Fund | Category Average |
| Standard Deviation | 11.52 | 11.96 |
| Beta | 0.92 | 0.91 |
| Sharpe Ratio | 1.68 | 1.17 |
| Treynor’s Ratio | 0.21 | 0.16 |
| Jensen’s Alpha | 7.56 | 2.44 |
The fund has exhibited slightly lower volatility than the category average, indicating relatively steadier performance. Its beta suggests it’s slightly more volatile than the category average but has also delivered higher risk-adjusted returns, as indicated by the higher Sharpe and Treynor ratios.
Overall, while the fund carries inherent risks, its historical performance metrics indicate efficient risk management and the potential for favorable returns relative to its peers.
SBI Long Term Equity Fund – Top Stocks
| Stock | Sector | Value (₹ Mn) | % of Total Holdings |
| GE T&D India Ltd. | Heavy electrical equipment | 13,153.5 | 5.51% |
| HDFC Bank Ltd. | Private sector bank | 9,408.7 | 3.94% |
| Torrent Power Ltd. | Integrated power utilities | 9,283.4 | 3.89% |
| Mahindra & Mahindra Ltd. | Passenger cars & utility vehicles | 8,559.1 | 3.58% |
| ICICI Bank Ltd. | Private sector bank | 8,314.0 | 3.48% |
The SBI Long Term Equity Fund invests 90.97% in domestic equities, with 51.88% in large-cap stocks, 12.78% in mid-cap stocks, and 13.05% in small-cap stocks.
The fund does not invest in debt instruments, maintaining a 0% allocation. The remaining 9.03% is classified under ‘Others,’ ensuring diversification within the portfolio.
Disclaimer: The information provided in this article is for educational and informational purposes only. It should not be considered investment advice or a recommendation to invest in any particular mutual fund or asset class. Past performance does not indicate future results, and investors should research and consult with a financial advisor before making investment decisions. Investing in mutual funds involves risks, including the possible loss of principal invested.
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