SBI Focused Equity Fund seeks to provide long term capital appreciation opportunities for investors by investing in a focused portfolio of equity-related instruments.
The fund invests at least 65 percent in equity-related securities covering market capitalization.
SBI Focused Equity Fund can invest up to 35% in debt and money market instruments.
Fund manager’s place bets on companies in the area of market capitalization and use the sector bottom-up stock-taking approach to gain high confidence.
Mr. Srinivasan is the fund manager of the scheme and has been managing the fund scheme since May 2009. The managers of SBI Focused Equity Funds provide strong confidence in market capital gains considerations, which is a good investment option for investors in the current market situation.
- 84.48% investment in Indian stocks
- 45.95% is in large-cap stocks
- 17.98% is in mid-cap stocks
- 12.58% in small-cap stocks
SBI focused equity fund is suitable for you
Investors who have an awareness of macro trends and prefer to place targeted bets for higher returns relative to other equity funds. At the same time, even if the overall market is outperforming, these investors should also be prepared for the possibility of moderate to high losses on their investments.
You can expect to invest for five years or longer, which comfortably defeats the rate of inflation and is higher than fixed income options. But be prepared to fluctuate according to your interest in investment.
It is a multi-cap fund where the fund management team has complete freedom to invest in companies of various sizes, where maximum returns are expected. This versatility makes multi-cap funds the most suitable for equity fund investors as the stock selection function is left entirely to the fund manager, who is the very essence of investing in mutual funds. As you do with all equity funds, you only have to invest through the SIP route in this scheme.
Taxability of earnings in SBI focused equity fund
- Funds up to Rs 1 lakh in a financial year will be exempt from tax if the mutual fund units are sold after one year from the date of investment. Earnings above Rs 1 lakh levied at the rate of 10 lakhs.
- If units of mutual funds are sold within one year of the date of investment, the total amount of profit will be taxed at the rate of 15%.
- There is no tax due as long as the units are in your possession.
- Mutual fund dividends are taxed at a rate of 10% (actually 11,648% including surcharge and expiration). Although the investor need not pay this tax directly, it is deducted from the dividend income until it is passed to the investor.
Note: If you need to redeem your investment in less than five years, do not invest in this or any other multi-cap fund. If you redeem your units within one year from the date of allotment of units, then, in this case, there will be a 1% exit load, no exit fee beyond one year.