Investment

Save Tax with SBI Multi-Cap Fund Direct-Growth

Tax
91Views

SBI multi-cap fund direct growth Plan invests at least 65 percent of its assets in equity and equity-related instruments by market capitalization. Up to 35% invest in debt and money market instruments. The fund employs a bottom-up stock-taking strategy and selects companies across sectors/genres.

SBI multicap fund direct growth is a tax-saving investment in compliance with current tax law. The purpose of the fund is to provide investors with the benefit of investing in a portfolio of equity shares, while offering a deduction for such investment under Section 80C of the Income Tax Act, 1961.

Anoop Upadhyay has managed the fund since February 2017. He is a B.Tech (Hons) graduate and PGDM. Till joining SBI AMC, he gained experience in the field by working with SBI Mutual Fund and Tata Consultancy Services.

The fund invests a maximum of 80% of its assets in equity, cumulative convertible preference shares, fully convertible debentures, bonds, etc. It can invest up to 20% of its assets in money market instruments. Investment in the scheme is subject to a statutory lock-in of 3 years from the date of allocation.

Here are some critical details of SBI multi-cap fund direct growth:

  • Category- Equity QUALITY
  • AUM- 25 Cr as on 31 Jan 2020
  • Risk- Moderately High
  • Benchmark- S&P BSE 500 Index

Multi-Cap Fund:

  • 47% investment in Indian stocks
  • 77% is in large-cap stocks
  • 58% is in mid-cap stocks
  • 04% in small-cap stocks

SBI multi-cap fund direct growth strives to provide investors with prospects for long-term capital growth, as well as an open with actively managing assets across a diversified equity portfolio across the entire market capitalization spectrum and debt and currency instruments with the liquidity of the ended scheme. The fund invests about 50–90 percent in large capital funds, 10-40% in midcap funds, and 0-10% in small-cap funds.

Why it is the most sought-after tax-saving investment

  • SBI multi-cap fund direct growth is a good fund
  • Through SIP, you can invest in it.
  • There is yet another action item on your shoulders.
  • You will periodically check the performance of those funds and regularly change your investment decisions (holding, selling, or investing in another fund).
  • In other words, you should check their performance and compare them to your peers at least once a year, if they do not perform well for more than two years, you should turn to other good funds.

Here are the pros and cons of the SBI multi-cap fund direct growth

  • In this scheme, the risk is low
  • Expense ratio is also low
  • An investor will get one year more returns from the benchmark
  • An investor will get five years more returns than the benchmark
  • Risk-adjusted return is low
  • You will get three years fewer returns than the benchmark

Note: If you need to redeem your investment in less than seven years, do not invest in this or any other mid-cap fund

Leave a Reply