SBI Long Term Equity Fund review: Should you invest?
SBI Long Term Equity fund has delivered a sub-optimal returns over the last five years. Will its value investing strategy finally pay off? March 01, 2021 / 08:04 PM IST
As a long-term mutual fund investor, you might have come across occasions when many schemes that were the chart toppers in their respective categories in the past turned underperformers in the following years. Similarly, schemes that were demonstrating below-average performance in the earlier years may have turned out to be outperformers in their respective categories in later years.
SBI Long Term Equity Fund (SLTEF), formerly known as SBI Magnum Taxgain, is one such fund that had dominated its peers in terms of performance till 2014. But it turned an underperformer in the following years and dwindled to the third and fourth quartiles. It was the largest Equity Linked Saving Schemes (ELSS) between 2007 and 2014, managing a corpus of between Rs 1,665 crore an
Suggested InvestmentHorizon: >3 years
Time taken to doublemoney: N.AHere are a few things you should remember before investing in ELSS funds. Though ELSS funds have a mandatory lock-in period of only three years, do not invest with a horizon of just three years in them. You should always have an investment horizon of at least five to seven years when you are investing in an equity mutual fund scheme, including ELSS funds. Also, do not overlook the risk in these schemes. These schemes invest most of their corpus in stocks. And they mostly follow a flexi cap investment strategy. So, they have a higher risk element in them.