SBI Mutual Fund launched new fund offer SBI Long Term Advantage Fund -Series I, 10 year  closed ended ELSS scheme. The NFO Opens for subscription on 1 Nov. 2014 & closes on 31 Jan. 2015.  No entry load will be applicable for the scheme.

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[wptabtitle] Scheme Details[/wptabtitle] [wptabcontent]Key Scheme Feature 

Scheme NameSBI Long Term Advantage Fund Series 1
Fund HouseSBI Mutual Fund
TypeClosed Ended ELSS Scheme - 10 years
BenchmarkS&P BSE 500 Index
OptionGrowth / Dividend
Fund ManagerDharmendra Grover
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Scheme NameSBI Long Term Advantage Fund Series 1
NFO Open1 Nov 2014
NFO Close31 Jan 2015
Scheme Type10 years Close Ended ELSS Scheme
Minimum Application AmountRs 500
Load StructureFor Purchase during NFO : Entry & Exit - NIL

Cheque Details        : “SBI Long Term Advantage Fund-Series I”

Who can Invest

This product is suitable for investors:

  • Seeking long term capital appreciation
  • With risk appetite of investing in Equities
  • Investors willing to take exposure in equity and equity related securities


[wptabtitle] Objective[/wptabtitle] [wptabcontent]Investment Objective for SBI Long Term Advantage Fund Series I

  • To generate long term capital appreciation from a diversified portfolio of predominantly equity and equity related securities , including equity derivatives, in the Indian market .
  • The company whose market capitalization is equal to or lower than that of the 101th stock and upto 300 stock in the nse.

Methodology (Portfolio Construction ) 

The funds clollected under the scheme shall be invested in equities, cumulative convertible preference shares and fully convertible debentures and bonds of companies. Investment may also be made in partly convertible issues of debentures and bonds including those issued on rights basis subject to the condition that, as far as possible, the non-convertible portion of the debentures so acquired or subscribed, shall be disinvested within a period of twelve months.

SBI Long Term Advantage Fund – series I is a diversified Equity Fund. The fund will invest into equity stock of companies listed in India. The fund investment strategy is split into three parts;

1. Asset Allocation :

The fund will invest a portion of its assets into large caps, midcaps and small caps. The proportion of the exposure to each capitalisation will depend on the following factors;

  • Liquidity of stocks under each capitalisation range (e.g. Large caps are more liquid than midcaps and midcaps are more liquid than small cap)
  • Trading
  • Market scenario – It is observed in the past that, in falling markets, large caps fall lesser )in % terms) than midcaps & small caps. It is also observed that, in rising markets, midcaps outperform (in % terms) large caps.

2. Top Down Approach

The top down approach helps identifying sectors where the portfolio should take exposure. The portion of exposure to each sector (vis-a0vis benchmark) depends on the following parameters

  • Macroeconomic view
  • Policy changes
  • Global trends
  • Relative valuation of each sectors vis-a-vis other sector
  • Risk premium (Risk-reward ratio)

3. Bottom up Approach :

The bottom-up approach helps identifying stocks where the portfolio should take exposure. The portion of exposure to each stock (vis-a-vis benchmark and within the sector) depends on the following parameters:

  • Relative valuation of each stock vis-a-vis other stock within the sector or broader market
  • Management quality
  • Business fundamentals
  • Risks associated with business
  • Ratios (PE, PB etc)


[wptabtitle] Tax Implication[/wptabtitle] [wptabcontent]Illustrative List of Tax Implications

This summary of tax implication is based on the current provisions of the applicable laws. In view of the individual nature of tax implications, investor are advise to refer the provisions of the Income-Tax Act & consult Investment Advisor or Tax advisor  with respects to the specific tax implications arising out of an investment in the scheme.

  • 80 C Tax Benefit : Investment made upto Rs. 1,50,000 by Individual / HUF shall only qualify for deduction under section 80 C of the Income Tax Act.
  • Income from Fund : Exempt from Tax
  • Dividend from Fund  :  Tax Free
  • Long Term Capital Gain (Unit held for more than 12 months qualify) : Tax Free
  • Short Term Capital Gain (Unit held for less than 12 month qualify) : 15%
  • Security Transaction Tax : Payable  at 0.001% on the value of units sold
  • Tax Deduction at Source (TDS) :  Not applicable for person resident in India; TDS applied on redemption proceeds payable to NRIs.



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