SBI Equity Mutual Fund offers 24 different types of mutual fund schemes under the category of equity mutual funds. As on March 2023, the total AUM belonging to these SBI AMC schemes is Rs 696,645 crores. SBI Equity schemes include bluechip funds, mid-cap, small-cap, opportunities funds, flexi-cap, index funds and so on.
Equity funds provided by SBI mutual fund are suitable for an investor who understands the exposure to the equity market and the volatility associated with such exposure. Due to such volatility, an investor must aim to avoid this volatility in the short term and focus on capital appreciation in the long term. SBI Equity Mutual Fund is suitable for an investment duration of minimum of 5 years to 7 years. Moreover, before investing, the investor should identify the investment objective for investment in SBI Equity Mutual Funds. SBI Equity schemes are ideal for an investment objective of child education, retirement planning, buying a dream house, etc. An investor must stay invested during the investment period to reap maximum wealth creation.
Things To Consider Before Investing in SBI Equity Fund
Investment Objective: SBI Equity Fund aims to achieve long-term appreciation and wealth creation for its investors by investing in equity and equity related securities. To achieve this objective, the SBI Equity Mutual Fund schemes invests in stocks of companies with different market capitalizations across diverse sectors and industries including automobile, FMCG, Tele-Communications, energy, and so on.
Investment Strategy: The Fund Manager(s) shall invest in stocks from a variety of market cap universes as prescribed by SEBI/AMFI from time to time. SBI Equity Fund primarily invests in equity and equity-related instruments in order to achieve long-term total returns. SBI Equity Mutual Fund schemes aim to add the finest opportunities that the market has to offer. These Schemes will invest in a disciplined yet flexible long-term strategy with the goal of long-term capital appreciation. The funds will use a bottom-up approach to find inexpensive stocks with strong long-term growth potential. Furthermore, the SBI AMC investment team will research macroeconomic conditions, such as the political and economic climate, as well as factors affecting liquidity and interest rates. This study would be used by the AMC to strive to forecast the expected direction of interest rates and position the portfolio accordingly to take advantage of it. In addition, in accordance with the existing Regulations, the Scheme may invest in other schemes administered by the AMC or in the schemes of any other Mutual Funds.
Associated Risk
Since investment in equity funds are exposed to the equity market, the funds are volatile. Moreover, the value of SBI MF Equity Mutual Funds may be affected generally by factors affecting securities markets, such as price and volume volatility in the capital markets, interest rates, currency exchange rates, changes in policies of the Government, taxation laws, and other policies.
SBI Equity Funds are also sensitive to changes in the values of the securities they invest in, which might have a significant impact on their overall results.
SBI Equity Fund managers take an active part in the active management of the portfolio to reduce risk and achieve its investment objectives.
Tax on SBI Equity Mutual Fund
An income arising from the sale of SBI Equity Fund schemes generates a capital gain. Capital gain on SBI Equity Mutual Fund is taxable depending on the period of holding. If the mutual fund units are held for more than 12 months then long term capital gain arises. The LTCG on SBI Equity Mutual Fund is exempt up to Rs 1 lakh. An LTCG of more than Rs 1 lakh is taxable at a rate of 10%. If an investor sells the units of SBI Equity Mutual Fund before 12 then short term capital gain arises. The STCG is taxable at a rate of 15%.
