All you need to know about SBI Focused Equity Fund
The SBI mutual fund house launched the SBI Equity Fund on 11 October 2004. It is an open-ended Flexi cap equity scheme. This SBI Focused Regular Growth style is investing around 65.7% in large-cap companies and 34.3% in mid-size cap companies. The main objective of the scheme is to provide the investor with an opportunity of investing in long-term capital appreciation. This is achieved by investing in a concentrated portfolio of equity and equity-related securities. The returns of SBI focused fund are 19.54 since launch. The turnover of this fund is 45%. The SBI Focused Equity Fund’s regular growth net asset value is Rs 229.2340 currently.
The fund is suitable for those who are ready to invest for five years or more. The expected gains can easily beat the inflation rate. It can also beat the returns from fixed income options. But have patience during ups and downs in the market and be prepared to see SBI Equity Fund’s regular growth in the long run.
SBI Focused Fund is a Flexi-cap fund. It means that the fund management team has complete freedom to invest in companies of different sizes. The size of companies depends upon maximum gains expectations. This diverse range of companies makes Flexi-cap funds most suitable for equity fund investors. The investor can easily rely on the fund’s manager for stock selection.
The top companies that are holding funds of SBI Focused Equity funds are Muthoot Finance, Alphabet Inc Class A, Netflix Inc. and HDFC bank. The top 10 equity holdings hold around 53.11% of the assets. The sectors in which the fund has the majority of its money invested are Financial, Services and Healthcare. These top three sectors constitute around 53.11% of the assets. The SBI Equity fund asset allocation comprises 91.97% inequities and 8.03% in cash and its equivalents.
Talking about taxes, If the mutual fund units are sold before 1 year from the date of investment, then there will a tax of 15% on the entire gaining amount. If the mutual fund units are sold after a year, then there are two cases. In the first case, if the entire gaining amount is above 1 lakh, then there will be a tax of 10%. But if the entire gaining amount doesn’t sum up to 1 lakh, then the amount is exempted from tax.
If you know about Asset Allocation. Do read this topic- What is Strategic Asset Allocation (SAA)?
From Hemant K Midha