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According to a report, a simple SIP of Rs 1,000 per month since its inception in 1993 would today be worth more than Rs 1.4 crore.
The Equity Linked Savings Scheme (ELSS) has grown into a titan of disciplined investing.
In the vast landscape of finance, where schemes come and go, one fund has quietly rewritten the rules of long-term wealth creation – transforming the humble Rs 1,000 monthly investment into a staggering Rs 1.4 crore over 32 years.
Launched in 1993, the SBI Long Term Equity Fund, formerly known as the SBI Magnum Taxgain Scheme, has emerged as a standout performer among the country’s tax-saving mutual funds. Often overlooked in the early years of mutual fund journey, this Equity Linked Savings Scheme (ELSS) has grown into a titan of disciplined investing.
Today, the fund boasts an Asset Under Management (AUM) of Rs 27,730 crore and a Net Asset Value (NAV) of Rs 437.78 under its Direct Growth plan. Managed by Dinesh Balachandran since 2016, the fund maintains a sharp equity focus, with nearly 90% of its portfolio invested in stocks spanning financial services, IT, energy, healthcare, and metals.
Its top holdings are HDFC Bank, ICICI Bank, Reliance Industries, Bharti Airtel, and Hexaware Technologies. But its real legacy lies in what it has delivered to disciplined investors.
According to a report by Business Today, a simple SIP (Systematic Investment Plan) of Rs 1,000 per month since its inception would today be worth more than Rs 1.4 crore, translating to an impressive annualised return of 16.43 percent. That’s the compounding magic of sticking with a single fund for over three decades.
To put this in perspective, the fund has effectively doubled invested capital every three years. Even a much shorter investment horizon would have yielded strong returns. For example, a three-year SIP of Rs 10,000 per month, totalling ₹3.6 lakh, would have grown to approximately Rs 6.55 lakh, reflecting an annual return of 20.93 percent.
The SBI Long Term Equity Fund also comes with a built-in tax advantage, as it qualifies for deductions under Section 80C of the Income Tax Act, with a relatively short lock-in period of just three years, the lowest among tax-saving instruments.
Disclaimer: The information presented above is for educational purposes only and should not be construed as investment advice. Always consult a certified financial advisor before making investment decisions.