Mutual funds are investment funds in which investors pool their money to purchase securities. These funds have their own advantages when compared to direct investment in individual securities. A long-term capital gain in a mutual fund is that which has been held for more than a year from the investment date.
SBI mutual fund is one of the most familiar options available options chosen by the investors. Since the time of its inception, it has been growing at a tremendous rate. You can go through the entire article to know more about various SBI mutual fund schemes. The following is a list of five best SBI mutual fund in which investment can be opted for a long term gain:
SBI Equity Savings Direct Growth
SBI Equity Savings Direct Growth helps in generating income from investment in several arbitrage opportunities that are there in the equity market’s derivative and cash segment. Through exposure to equity in the usual way, this SBI mutual fund helps in capital appreciation. These funds do not include any dividend. Investments in these funds get the most considerable compounding benefit.
SBI Banking and PSU Fund Direct Plan Growth
The SBI Banking and PSU Fund Direct Plan Growth is a scheme that generates regular income from a judiciously mixed portfolio. It consists of money market securities of Public Sector Undertakings, Banks, Municipal bodies and Public Financial Institutions. There are no dividends, and your funds will be getting the most considerable compounding benefit.
SBI Credit Risk Fund Direct Plan Growth
The SBI Credit Risk Fund Direct Plan Growth provides an opportunity for the investors to invest predominantly in corporate bonds that have been rated AA and below. This will help in generating attractive returns. An investment in the money market securities will also assist in maintaining a moderate amount of liquidity in the portfolio. It is preferable for investors who prefer less but want to invest for a more extended period.
SBI Equity Hybrid Fund Direct Growth
The SBI Equity Hybrid Fund Direct Growth provides a long term capital appreciation to the investors. It involves the liquidity of a scheme that is open-ended. This is done through investments in a debt-equity mix. This scheme requires investment in some diversified equity portfolios of highly growing companies. It balances the risk by investing the remaining amount in some fixed-income securities. You may not receive any dividend, but you will get significant benefits of compounding. In Indian stocks, these funds have 72.73% investment as on January 2020.
SBI Infrastructure Fund Direct Growth
The main objective of an SBI Infrastructure Fund Direct Growth is to grant investors with long-term growth opportunities. It helps in the growth of capital by actively managing the investments into equity stocks of companies that are in any way involved in the infrastructural growth of the Indian economy. It also includes investments in the instruments of the money market.
This scheme is suitable for people having advanced knowledge of the macro trends and prefers equity funds with higher returns.
This article provides the list of some of the best SBI mutual fund schemes. As mutual funds are a great source of income for the long term, investments in these funds can help earn profit in the future.