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Crorepati Mutual Fund Scheme: This SBI Mutual Fund celebrates 32 years with 37x returns, making it a strong option for long-term wealth creation with tax benefits.
Power of compounding: Mutual fund is a great tool in it.
Crorepati Mutual Fund SIP Investment Returns: The purpose of investing in the equity market is not only to beat inflation but to build long-term wealth. The equity market is often compared to a marathon; only those with sufficient mental strength and stamina to endure its long duration can sustain their investments. With the power of compounding, however, the rewards are immense. It offers investors the potential for substantial returns, turning their investments into lakhs or crores.
One such fund has given 37 times return to their investors in the last 32 years. Let’s get to know about this fund – SBI Long Term Equity Fund.
SBI Long Term Equity Fund
SBI Long Term Equity Fund (SBI LTEF), an open-ended equity-linked savings scheme with a statutory lock-in period of 3 years and tax benefits, has reached a significant milestone of 32 years. Initially launched on March 31, 1993, with the IDCW Option (previously known as the Dividend Option), the Growth Option was introduced later on May 7, 2007.
Performance Overview
A monthly SIP investment of Rs. 10,000 (totalling Rs. 38.5 lakhs) in the scheme since its inception would have grown to Rs. 14.44 crores by March 28, 2025, yielding a 17.94% CAGR. The scheme has delivered impressive returns over different periods: 16.03% over 15 years, 17.59% over 10 years, 24.31% over 5 years, and 23.42% over 3 years. In comparison, its benchmark BSE 500 TRI posted returns of 14.30% over 15 years, 15.14% over 10 years, 17.17% over 5 years, and 13.89% over 3 years.
Given that the scheme was launched before the benchmark index, the index’s performance since inception is unavailable.
Mr. D P Singh, Deputy Managing Director and Joint CEO of SBI Mutual Fund, emphasises that investors under the old tax regime should adopt a comprehensive view of their investments. This perspective includes considering the potential for wealth creation through optimal tax and inflation-adjusted returns, alongside the tax benefits. With a 32-year track record, the SBI Long Term Equity Fund remains a viable option, offering equity market-linked returns suitable for those aiming for long-term wealth creation.
Disclaimer: The views and investment tips by experts in this News18.com report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decisions.