Looking to invest in mutual funds? Here’s why SBI mutual funds can be a great choice
by Mashum Mollah Finance Published on: 03 February 2020 Last Updated on: 28 August 2020
As the days are passing, mutual funds are becoming a popular investment choice for many investors. There are a large number of people in India, with a majority of investors comprising the youth, are showing an inclination in mutual funds investments at present times. The reason that exhibits the popularity of this smart investment instrument is the stockpile of advantages that are available to the investors during the investment period. When it comes to the SBI mutual funds, it has an excellent track record of around 30 years in fund management.
A colossal customer base of more than 5.4 million investors, it becomes one the largest and most reliable organizations. Investors can simply select this fund management company for parking their money as it is also the fastest-growing mutual fund in India.
Here’s why SBI mutual funds can be a great choice
Multiple investment options:
Investors investing in SBI mutual fund schemes can get a wide range of options in investments. If your investment objective is the appreciation of your capital, there are a number of plans that invest in equities of sectors like banking, MNCs. FMCG, pharmaceuticals, and others. The term investment in such volatile assets is usually longer and the risk involved is medium to high. On the contrary, if you wish to invest in low-risk assets for the short-term, then SBI also has debt-orientated plans. Mutual funds like SBI liquid fund, SBI magnum income funds, etc., are appropriate. Besides, it offers funds in the hybrid category as well, which tends to create an equilibrium between risk and returns.
Well regulated funds:
This investment instrument is governed by the Securities and Exchange Board of India (SEBI). All the mutual fund companies in the country have to abide by the set of rules and regulations that are laid down by the SEBI. The SBI mutual funds are no exception to this and are listed under the SEBI. All types of investments in these funds are made as per the guidelines of the Board. A regulation under SEBI ensures that both the providers and investors are not subjected to any unfair practices. It also allows the funds to be well-regulated and offers additional safety.
Professionally managed:
Investments in the mutual funds of SBI are quite easy as experienced fund managers manage them. It has a knowledgeable fund management team that is exposed to the market dynamics, and it consistently delivers value to its customers. Having such an enriched professional team helps investors who are a newbie in this arena of finance. As the experts handle all the activities of fund management, it gives assurance to the clients that their money is being parked at a secured place.
Convenient investment option:
The investments in SBI mutual funds help to reduce the risk burden as these schemes are spread across investments made in a variety of assets and securities. It can be very well assessed by the fact that in the year 2019, the SBI Mutual Fund manages assets worth Rs 2.83 Lakh Crore. It moved passed other top-performing mutual fund schemes to develop as 3rd largest Mutual Fund body in India based on Assets under Management or AUM. Moreover, it also witnessed a 7% growth in AUM in the same year.
Easy to track the fund performance:
In mutual funds the are purchased and liquidated by the purchasers on a regular basis, and hence it is not easy to track the performance every day. The SBI mutual fund provides all statements with clear terms and conditions, making it more transparent for the investors to keep track of their investment. Investors can either visit the branch in person to check the fund performance or download the statements from the official website of the SBI fund house.
Tax savings benefit:
The mutual fund scheme has provisions of tax savings under Section 80C of Income Tax Act, 1961. This benefit is available if you invest your capital in mutual funds which majorly deals inequities through equity-linked savings schemes (ELSS). The popular plan of the fund house is the SBI Magnum Tax Gain Scheme which encourages the habit of saving with investments in the equity-orientated market and comes with a lock-in period of 3 years. There are other tax savings like SBI Tax Advantage Fund – Series which invest in equity-related instruments meant for capital appreciation, but the lock-in period is comparatively high with 10 years.
The SBI mutual fund schemes are mainly based on thorough empirical research and potential, and it carries a rating of three or more from CRISIL. Besides, these products are designed by comprehending the requirements and objectives of the investors and has performed well to meet their expectations. All these features make SBI mutual funds a trustworthy choice for investors.
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