How to Make a Balanced Portfolio with SBI Equity Savings Fund?

You can’t miss out investing in SBI Equity Savings Growth Fund if the balance is what you are looking forward to incorporating in your portfolio. A superb blend of equity and debt, this fund has got the required energy and endurance to make your fund as healthy as a horse. Belonging to the product family of the esteemed SBI Mutual Fund, SBI Equity Savings Fund is considered to be one of the best options available to make a judicious investment plan geared towards achieving your objectives.

Electing SBI Equity Savings Growth Fund for your portfolio is the paradigm of supreme wisdom, besides being a safer way to earn a higher income. In India, where the majority of the people are middle-class and follow an economic approach towards their expenditure, this fund is a boon and the tonic to their ailing financial conditions.

At MySIPonline, we make constant efforts to provide the best investment facilities, which includes offering investment guidance, A-grade products of the top AMCs and an easy online facility to invest in them without any hassles. Our constant endeavor towards the betterment of the investors and the mutual fund industry as a whole has made us one of the leading investment sites in India and the undisputed champion in the northern parts of the country.

SBI Equity Savings Fund – The Introduction

SBI Equity Savings Fund-Regular Plan Growth is a hybrid fund that was launched exactly three years ago in May 2015, with an objective of earning high returns and build wealth for the stakeholders, by leveraging on arbitrage opportunities in both cash and derivatives market having moderate exposure of risks. Since its inception, the fund has performed fantastically, moving in close proximity with the benchmark, NIFTY 50 (35), NIFTY 50 Arbitrage, and CRISIL Liquid (300, and at times beating it. The fund stands amongst one of the top five funds in India that have paid a high return in the past, with an average yield to date of 7.51%.

SBI Equity Savings Growth Fund – The Investment Details

SBI Equity Savings Fund NAV

The Net Assets Value or NAV of SBI Equity Savings Fund G as of 26th June 2018 as recorded at Rs. 12.5063, after it suffered a drop of 0.06% in its previously recorded value. Since the fund is running slightly cheaper than what it was before, it might be a good time for you to buy a stake in it if at all it fits your needs and aspirations. However, if you are little hazy about your choices, then better ask your financial consultant before it’s too late.

The Exit Load : This is the premium or the fees charged by the fund in case there is a premature redemption, generally before the expiry of 365 days from the date of the investment. Usually, most funds charge a blanket rate of 1% on the value standing on the date of redemption. However, the case of SBI Equity Savings Growth Fund is different. Here, in case of redemption before the expiry of the said period of 365 days, the investor will be charged a fee of 1% as exit load on the units redeemed in excess of 9% of the total investment made. This puts a check on the movements of the sbi equity savings funds of an investor and ensures that he stays invested for a longer period to grind out the maximum benefits out of his investment.

The Expense Ratio : The expense ratio is nothing but the annual fees charged by the fund house on account of managing your fund, plus other miscellaneous expenses that are occurred during the lifetime of the fund, such as administration, advertising, legal and management costs. In usual cases, the expense ratio doesn’t go over 2.50%; however, the level of this ratio entirely depends upon the fund you have chosen and the related expenditure. Thankfully, by virtue of a solid fund management team looking after its back, SBI Equity Savings Growth Fund is not irked with high expense ratio, which now stands at 2.09%.

SBI Equity Savings Fund G – The Fund Details

When investing in any fund, some of the most important details to look out for is its past performance and the structure of its portfolio. While the former will help you understand how well the fund has been performing, the latter will determine the structure responsible for its performance. Take into account the following details on SBI Equity Savings Fund Growth that will inform you about its past performance and the portfolio structure: -

The Portfolio Structure

For a hybrid fund, it is rare to see an almost equal division of assets between equity, debt, and cash and cash equivalents. SBI Equity Savings Fund Growth follows a unique investment philosophy that includes equal application of assets towards equity (38.05%), debt (30.37%) and cash & its equivalents (31.59%), thus ensuring that the underlying portfolio is strong and has all the necessary traits required to rip off huge returns from the market.

In addition to a judicious division of assets between different segments of investment, the fund invests in different types of securities including AA, AAA, Term deposit and SOVs, which further adds the strength of the portfolio and makes it all powerful to last longer in the market.

The Performance

Talking about numbers, the SBI equity savings fund g raised returns to the tune of 5.04% in the one year investment period as against the benchmark and peer returns of 6.28% and 5.43%, respectively. In case of 3 year investment period, the fund earned 7.35% worth of returns in comparison to 7.70% returns earned by the benchmark and 7.43% return earned by the category.

It is an obvious fact in the world of mutual fund investing that for any fund to reach the heights of its performance graph and conquer the summit, it roughly takes about 5-7 years. But, SBI Equity Savings Fund growth investment was able to garner a good returns streak in merely three years, since its launch in 2015. Though it remained behind the benchmark and the peer returns, however, the rate at which it’s moving in tandem with them clearly shows that this fund has got the potential to defeat the competition with ease and set the bar in the market higher than ever.

As the famous writer Collin Wright quoted in one of his interviews, “Extremes are easy. Venture for balance”, making a plan that is totally devoted to earning returns, or a plan that possesses great cover but is weak on the earnings end may be an easy task to do. However, the real challenge lies in creating a portfolio that possesses both the qualities in plenty. By online investment in SBI Equity Savings Fund G through MySIPonline, you can easily add balance to your investment plan and make sure that it works for attaining your objectives, and thus for the betterment of your future. There are plenty of tools available on our website such as the SIP Calculator, which can give the best estimate of your SIP investments at different point of time. Further, there is the Tax Calculator that lets you know how much taxes you are paying in a given year and how you can bring it under your budget. So, don’t wait any more! Make a plan today!

What our clients say...
  • Investment in SBI Equity Savings Fund was done as I believe in investing in a hybrid scheme. I enjoy the returns that the balance of assets provide with the balancing of the risk factor. Although initially, I preferred making direct investment, now I prefer mysiponline for this purpose as it has made investing so convenient and simple. Also, I would like to mention that people at help desk are really supportive and the suggestions that I have received till now have been really helpful.

    Pramod vaishnav New Delhi