Invest Smartly: Sbi Mutual Fund Lumpsum Guide

SBI Mutual Fund is one of the leading AMCs in India, offering approximately 60 schemes across different categories, including equity, debt, and hybrid mutual funds. The fund house has well-experienced fund managers who are competent in dealing with bullish and bearish markets, contributing to efficient fund management. SBI Mutual Fund offers both SIP and lump-sum investment options. The minimum amount for a lump-sum investment is INR 5000, while investors can start investing with just INR 500 through the SIP route.

Some of the popular equity schemes of SBI Mutual Fund include the SBI Bluechip Fund, SBI Focused Equity Fund, and SBI Small Cap Fund. The SBI Magnum Gilt Fund, SBI Magnum Income Fund, and SBI Dynamic Bond Fund are among the top debt schemes. Additionally, the SBI Equity Hybrid Fund is one of the top schemes in the hybrid category.

When considering how to invest a lump sum in SBI Mutual Fund, it is essential to assess your risk tolerance level, investment objectives, and investment horizon. If you are a high-risk taker, equity mutual funds may be suitable. On the other hand, debt funds are more appropriate for risk-averse investors. Moreover, for long-term investment horizons, equity mutual funds are recommended, while debt funds are ideal for shorter durations.

SBI Mutual Fund: Best for long-term investment goals

SBI Mutual Fund is one of the leading AMCs in India. It is a joint venture between Amundi, a European asset management company, and the State Bank of India. SBI Mutual Fund has been operational for more than 30 years and offers approximately 60 schemes, including debt schemes, hybrid schemes, and several equity funds.

Why SBI Mutual Fund is Best for Long-Term Investment Goals

Equity funds by SBI Mutual Fund aim to provide long-term capital appreciation by investing in high-growth companies. These funds are highly suitable for investors who are looking for long-term gains and are ready to hold some level of risk in their investment.

SBI Mutual Fund offers both SIP and lump-sum ways to invest in equity funds. The minimum amount for a lump-sum investment is INR 5000, whereas, through a SIP route, investors can start investing with just INR 500.

Top SBI Equity Mutual Funds for Long-Term Investment Goals

• SBI Infrastructure Fund: This fund aims to provide investors with opportunities for long-term growth in capital through active management of investments in a diversified basket of equity stocks of companies involved in the infrastructure growth of the Indian economy.
• SBI Magnum Tax Gain Fund: This fund seeks to deliver the benefit of investment in a portfolio of equity shares while offering a deduction on such investments under section 80C of the Income Tax Act, 1961. It also seeks to distribute income periodically.
• SBI Consumption Opportunities Fund: This fund provides investors with maximum growth opportunities through equity investments in stocks of growth-oriented sectors of the economy.
• SBI Magnum Mid Cap Fund: This fund provides investors with opportunities for long-term growth in capital along with the liquidity of an open-ended scheme by investing predominantly in a well-diversified basket of equity stocks of mid-cap companies.
• SBI Small Cap Fund: This fund seeks to generate income and long-term capital appreciation by investing in a diversified portfolio of predominantly equity and equity-related securities of small and mid-cap companies.

Benefits of Investing in SBI Mutual Funds

Some of the major benefits that SBI Mutual Fund schemes offer are:

• Long-term Investment Goals: Investors can plan their long-term financial goals by investing in SBI's equity funds, which aim to provide long-term capital appreciation.
• Excellent Ratings: Many of the SBI equity schemes have received excellent ratings, with a CRISIL rating of three and above.
• Consistent Returns: SBI's equity schemes have delivered consistent returns over the years, providing good returns to investors who stay invested for a longer duration.
• Tax Benefits: SBI Mutual Fund offers tax benefits under Section 80C to investors, with the SBI Magnum Tax Gain Fund providing tax-saving opportunities.

SBI Magnum Tax Gain Fund: Offers tax benefits under section 80C

SBI Magnum Tax Gain Fund is an open-ended equity-linked savings scheme (ELSS) that offers investors the opportunity to invest in a wide range of equity shares and avail tax deductions of up to Rs. 1.5 lakh under Section 80C of the Income Tax Act, 1961. The scheme was introduced by SBI Mutual Funds on 31 March 1993 and is managed by Mr. Dinesh Balachandran.

The key objective of the SBI Magnum Tax Gain Fund is to deliver the benefits of investing in a portfolio of equity shares while offering tax deductions on investments made under Section 80C. It also seeks to distribute income periodically, depending on the distributable surplus. The fund has a statutory lock-in period of 3 years from the date of allotment to avail of these tax benefits.

The SBI Magnum Tax Gain Fund's portfolio primarily comprises shares and equity-related schemes, with a small portion invested in debt instruments like money market instruments to balance the portfolio and ensure liquidity. The fund has provided consistent returns over the years, with a CAGR of 12.9% since its launch in 2007.

The minimum amount required to invest in the SBI Magnum Tax Gain Fund is Rs. 500, and investors can choose to invest through a lump sum or a Systematic Investment Plan (SIP). The fund is best suited for investors with a high-risk appetite as it is an equity-based investment plan.

To apply for the SBI Magnum Tax Gain Fund, investors can visit the SBI Mutual Fund website, submit the KYC form at any SBI branch, or call the SBI Mutual Funds toll-free numbers for assistance.

SBI Infrastructure Fund: Provides opportunities for long-term growth

SBI Infrastructure Fund is a mutual fund scheme from SBI Mutual Fund. It was launched on 6 July 2007 and has been in existence for over 11 years. The fund has an expense ratio of 1.0% and an exit load of 0.50% if redeemed within 30 days. The latest NAV (Net Asset Value) declared is ₹57.032 as of 13 October 2024.

The SBI Infrastructure Fund is mandated to invest at least 80% of its assets in equity stocks of companies that are either directly or indirectly involved in the infrastructure growth of the Indian economy. The fund aims to provide investors with opportunities for long-term growth in capital through active management of investments. It has a high-risk rating and has given a CAGR (Compound Annual Growth Rate) of 10.3% since its launch.

The fund has delivered average annual returns of 17.35% to 17.36% since its inception and has doubled the money invested every 2 years. The SBI Infrastructure Fund's ability to deliver returns consistently is in line with most funds in its category, and its ability to control losses in a falling market is above average.

The fund has the majority of its investments in the Construction, Energy, Materials, Services, and Communication sectors. Its top holdings include companies such as Reliance Industries Ltd., Larsen & Toubro Ltd., Bharti Airtel Ltd., and Shree Cement Ltd.

SBI Mutual Fund offers both SIP and lump sum ways to invest in equity funds. The minimum amount for a lump sum investment is INR 5000, while investors can start investing with just INR 500 through the SIP route.

SBI Consumption Opportunities Fund: Delivers consistent returns

SBI Mutual Fund is one of the leading AMCs in India, offering approximately 60 schemes, including debt schemes, hybrid schemes, and equity funds. The SBI Consumption Opportunities Fund is a part of the equity funds category, which primarily invests in stocks of companies across market capitalisations.

The SBI Consumption Opportunities Fund is a high-risk fund that aims to provide investors with long-term capital appreciation by investing in a diversified portfolio of equity and equity-related securities in the consumption space. The fund has delivered consistent returns over the years, with a CAGR of 17.8% since its launch in 2013. As of 2024, the fund has provided a return of 26.29% in the past three years and 26.68% in the last five years.

The minimum amount required to invest in the SBI Consumption Opportunities Fund via a lump sum is INR 5,000, and via SIP is INR 500. The fund has an expense ratio of 0.90% and an exit load of 0.10% if redeemed within 30 days.

The top holdings of the fund include Ganesha Ecosphere Ltd, Bharti Airtel Ltd, Jubilant Foodworks Ltd, ITC Ltd, and Hindustan Unilever Ltd. As of 31-Jul-2024, the fund had invested 96.44% in equity and 3.56% in cash and cash equivalents.

The SBI Consumption Opportunities Fund is suitable for investors who have advanced knowledge of macro trends and are willing to take selective bets for higher returns. However, investors should be ready for the possibility of moderate to high losses, even when the overall market is performing well.

SBI Magnum Mid Cap Fund: Offers both SIP and lump sum investment options

SBI Magnum Mid Cap Fund is a mutual fund scheme that was launched on 29 March 2005. It is a moderately high-risk fund that aims to provide investors with long-term capital growth and the liquidity of an open-ended scheme by investing predominantly in a well-diversified basket of mid-cap equity stocks. The fund has provided a CAGR/annualised return of 17.8% since its launch and is ranked 28th in the Mid Cap category.

The minimum amount for a lump-sum investment in SBI Magnum Mid Cap Fund is INR 5000, while investors can start investing with just INR 500 through the SIP route. The fund has a minimum SIP investment of INR 500. The expense ratio of the fund is 1.65% or 0.77%, depending on the source. The fund has no lock-in period.

As of 31 July 2024, the fund had invested 94.68% in equity, 4.65% in cash and cash equivalents, and 0.47% in debt. The top holdings of the fund include Sundaram Finance Ltd., Schaeffler India Ltd., Coromandel International Ltd., and Carborundum Universal Ltd. The NAV of the fund as of 18 October 2024 is INR 243.3372 or INR 271.03.

Frequently asked questions