​​​A lot can change in 10 years. And we want you to make the most of it. All companies need time to grow and realise their potential in the market. The goal is to invest in companies with solid fundamentals and remain invested. So, as they grow, the money you have invested in them grows. And if you save tax on your investments, the benefit is just greater.

WEALTH CREATION & TAX SAVING

The SBI Long Term Advantage Fund – Series IV is a 10-year close-ended Equity Linked Savings Scheme (ELSS), which helps you to not only save tax on investment upto Rs. ​1.5 lakhs, under Section 80C of the Income Tax Act 1961, but also helps you to invest towards building wealth for the future. The mandate of this fund allows the fund manager to invest in companies for a long-term horizon and remain invested.

Fund Feature

  • Type of scheme: 
  • A 10-year close-ended Equity Linked Savings Scheme​

  • Triple Benefits of investing in SBI Long Term Advantage Fund - Series IV
    • ​​Tax Savings
    • Potential Capital Appreciation
    • Tax Free Returns
    • To identify stocks across market cap utilising asset allocation, top down and bottom up approach

  • No Investment bias:
  • The scheme will seek opportunities across market capitalisation, i.e. large caps, mid caps and small caps.
  • Targeted towards investors wishing to save tax, tax-free returns and having a long-term investment horizon.

  • Plans/Options offered:​ 
  • The scheme would have two plans, viz. Direct Plan & Regular Plan. Both plans will have two options - Growth and Dividend. Dividend option has the facility of payout and transfer.

  • Benchmark: 
  • S&P BSE 500

  • Minimum Application: 
  • 500/- and in multiples of 500/- thereafter​​​

​​Asset Allocation​

​​
Instrument
Indicative Allocation
(% of total asset)$
Risk Profile
Minimum Maximum High/medium/low
Equities, cumulative convertible preference shares and fully convertible debentures and bonds of companies 80% 100% High​
Money market instruments 0% 20% Low to Medium

​The Scheme shall not invest in Derivatives.

​The Scheme shall not invest in Securitized Debt.

​The Scheme shall not invest in repo in corporate debt.

​The Scheme shall not invest in ADR/ GDR/ foreign securities.

​The Scheme shall not engage in stock lending.

​​The Scheme shall not engage in short selling.


Tax Saving through ELSS:

  • ELSS (Equity Linked Savings Scheme) are diversified equity funds with a lock-in period of 3 years.

  • Tax benefits under Section 80C of the Income Tax Act, 1961 according to which investment upto Rs. 1.5 lakhs in ELSS is deductible from taxable income.

  • ELSS helps in saving considerable amount of taxes if planned efficiently as shown in the table below

​ ​
Annual Taxable
Income (Rs)
Tax before
investment in
ELSS (Rs)
Maximum
Amount to invest
in ELSS (Rs)
Taxable income
post ELSS
investment (Rs)
Tax after
Investment (Rs)
Savings (Rs)
40000015000150000250000015000
600000450001500004500002000025000
800000850001500006500005500030000
10000001250001500008500009500030000
1200000185000150000105000014000045000

The above information has been given for reference purposes only. Investors are advised to consult their own tax/financial adviser before taking any decision on investments. The tax calculations shown above are as per the income tax slab applicable to Individual/HUF assessee for FY 2016-17 exclusive of cess and surcharge.


ELSS VS. OTHER TAX SAVINGS PRODUCTS

Particulars PPF NSC ELSS Bank Deposits ULIPs
Tenure (years)155355
Minimum
Investment (Rs)
50010050010,00010,000
Max Investments under
Section 80C (Rs)
1,50,0001,50,0001,50,0001,50,0001,50,000
Safety/RatingHighestHighestHigh RiskLow RiskModerate
to High Risk
Return (CAGR) %8.1^8.1^Market Linked6.5#Market Linked
Interest FrequencyCompounded AnnuallyCompounded half-yearlyNo assured dividends/returns Compounded quarterlyN.A
Taxation of InterestTax FreeTaxableDividends & Capital Gains are tax freeTaxableN.A

#Source: State Bank of India as on November 17, 2016 ^ Source: http://finmin.nic.in and http://www.rbi.org.in Rates incorporates compounding wherever ​applicable.


Disclaimer: The comparison of ELSS vs. other tax saving products is given for information purposes only. Investors are advised to consult their tax/financial adviser before taking any decision of making investments. SBI Mutual Fund will not accept any liability/responsibility/loss incurred on any investment decision taken on the basis of this presentation.


Fund Features

A Common Application Form duly completed along with Rupee cheque or Rupee draft should be submitted / mailed to any of the Official Points of Acceptance of Transactions specified by SBI Mutual Fund (SBI MF). Investors can send their completed application forms with distributors appointed by SBI MF from time to time for onward submission to any of the Investor Service Centres. All cheques/DDs must be drawn in favour of "Name of the Scheme" and crossed "A/c payee" only and payable at the place where the application is submitted at the official point of acceptance.

An NRI choosing to invest in SBI MF currently cannot make the investment in foreign currencies. The NRI investor needs to give a cheque or draft in rupees from his/her NRE, NRO bank account in India. The NRI investor may also send a rupee cheque/draft issued by an exchange house abroad drawn on its correspondent bank in India. However, for an NRI to invest it is mandatory that he/she maintains a bank account in India.

Documents to be attached:

If an NRI investor invests in SBI Mutual Fund Schemes through Rupee draft/Bankers cheque, then any of the following documents should be attached along with the Application Form :

  • A Foreign Inward Remittance Certificate (FIRC) or
  • Confirmation letter issued by the bank confirming the source of funds or
  • A photocopy of the Rupee draft/Bankers cheque

When the investment is made by a Rupee cheque issued out of a NRE/NRO bank account in India, a photocopy of the NRE/NRO cheque should be attached along with the Application Form. Post-dated Rupee cheque will not be accepted. Please ensure that the cheques are correctly dated at the time of submission of the application forms

Fund Features

A Common Application Form duly completed along with Rupee cheque or Rupee draft should be submitted / mailed to any of the Official Points of Acceptance of Transactions specified by SBI Mutual Fund (SBI MF). Investors can send their completed application forms with distributors appointed by SBI MF from time to time for onward submission to any of the Investor Service Centres. All cheques/DDs must be drawn in favour of "Name of the Scheme" and crossed "A/c payee" only and payable at the place where the application is submitted at the official point of acceptance.

An NRI choosing to invest in SBI MF currently cannot make the investment in foreign currencies. The NRI investor needs to give a cheque or draft in rupees from his/her NRE, NRO bank account in India. The NRI investor may also send a rupee cheque/draft issued by an exchange house abroad drawn on its correspondent bank in India. However, for an NRI to invest it is mandatory that he/she maintains a bank account in India.

Documents to be attached:

If an NRI investor invests in SBI Mutual Fund Schemes through Rupee draft/Bankers cheque, then any of the following documents should be attached along with the Application Form :

  • A Foreign Inward Remittance Certificate (FIRC) or
  • Confirmation letter issued by the bank confirming the source of funds or
  • A photocopy of the Rupee draft/Bankers cheque

When the investment is made by a Rupee cheque issued out of a NRE/NRO bank account in India, a photocopy of the NRE/NRO cheque should be attached along with the Application Form. Post-dated Rupee cheque will not be accepted. Please ensure that the cheques are correctly dated at the time of submission of the application forms

Fund Features

A Common Application Form duly completed along with Rupee cheque or Rupee draft should be submitted / mailed to any of the Official Points of Acceptance of Transactions specified by SBI Mutual Fund (SBI MF). Investors can send their completed application forms with distributors appointed by SBI MF from time to time for onward submission to any of the Investor Service Centres. All cheques/DDs must be drawn in favour of "Name of the Scheme" and crossed "A/c payee" only and payable at the place where the application is submitted at the official point of acceptance.

An NRI choosing to invest in SBI MF currently cannot make the investment in foreign currencies. The NRI investor needs to give a cheque or draft in rupees from his/her NRE, NRO bank account in India. The NRI investor may also send a rupee cheque/draft issued by an exchange house abroad drawn on its correspondent bank in India. However, for an NRI to invest it is mandatory that he/she maintains a bank account in India.

Documents to be attached:

If an NRI investor invests in SBI Mutual Fund Schemes through Rupee draft/Bankers cheque, then any of the following documents should be attached along with the Application Form :

  • A Foreign Inward Remittance Certificate (FIRC) or
  • Confirmation letter issued by the bank confirming the source of funds or
  • A photocopy of the Rupee draft/Bankers cheque

When the investment is made by a Rupee cheque issued out of a NRE/NRO bank account in India, a photocopy of the NRE/NRO cheque should be attached along with the Application Form. Post-dated Rupee cheque will not be accepted. Please ensure that the cheques are correctly dated at the time of submission of the application forms

Fund Features

A Common Application Form duly completed along with Rupee cheque or Rupee draft should be submitted / mailed to any of the Official Points of Acceptance of Transactions specified by SBI Mutual Fund (SBI MF). Investors can send their completed application forms with distributors appointed by SBI MF from time to time for onward submission to any of the Investor Service Centres. All cheques/DDs must be drawn in favour of "Name of the Scheme" and crossed "A/c payee" only and payable at the place where the application is submitted at the official point of acceptance.

An NRI choosing to invest in SBI MF currently cannot make the investment in foreign currencies. The NRI investor needs to give a cheque or draft in rupees from his/her NRE, NRO bank account in India. The NRI investor may also send a rupee cheque/draft issued by an exchange house abroad drawn on its correspondent bank in India. However, for an NRI to invest it is mandatory that he/she maintains a bank account in India.

Documents to be attached:

If an NRI investor invests in SBI Mutual Fund Schemes through Rupee draft/Bankers cheque, then any of the following documents should be attached along with the Application Form :

  • A Foreign Inward Remittance Certificate (FIRC) or
  • Confirmation letter issued by the bank confirming the source of funds or
  • A photocopy of the Rupee draft/Bankers cheque

When the investment is made by a Rupee cheque issued out of a NRE/NRO bank account in India, a photocopy of the NRE/NRO cheque should be attached along with the Application Form. Post-dated Rupee cheque will not be accepted. Please ensure that the cheques are correctly dated at the time of submission of the application forms

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