1. Fund Overview
The SBI Large & Midcap Fund primarily invests in both large-cap (established) and mid-cap (growing) stocks, providing a blend of stability and growth potential. The fund has a 35% mandate for both large-cap and mid-cap investments, with the remaining portion allocated to other sectors like cash and small-cap stocks. This diverse approach aims to capture the advantages of both segments of the market.
2. Risk and Returns
As of November 2024, the fund is rated “Very High” risk, making it more suitable for investors with a higher risk appetite. Despite its high risk, it has provided strong returns:
- 1-Year Return: 29.45%
- 3-Year Return: 18.52%
- 5-Year Return: 21.38%
- 10-Year Return: 15.40%
The fund has been in operation for over 31 years, demonstrating long-term stability. The annualized return since inception stands at 15.21%, making it an attractive option for investors seeking both growth and diversification​
3. Portfolio and Asset Allocation
The portfolio is heavily weighted in equity, with approximately 97.56% of the assets invested in stocks, and 2.44% in cash and equivalents. Some of the top holdings include HDFC Bank, Reliance Industries, and ICICI Bank, with HDFC AMC and State Bank of India (SBI) also contributing to the fund’s diversity​
4. Management
The fund is managed by Saurabh Pant, who has been with SBI Mutual Fund since 2007 and is responsible for other significant funds such as the SBI Conservative Hybrid Fund and SBI Bluechip Fund​
5. Expense Ratio and Fees
The fund has an expense ratio of 1.60%, which is a typical fee charged for managing a diversified fund. This fee is deducted from the fund’s returns to cover operational costs, though it’s on the moderate end compared to other funds​
6. Investment Process
Investors can buy units of this fund directly from the SBI Mutual Fund website or through various investment platforms such as MF Central and MF Utility. It also has a no lock-in period, giving investors the flexibility to redeem their units whenever needed​
7. Taxation
Since the fund invests in equities, it is subject to long-term capital gains tax if held for over a year. Any capital gains exceeding ₹1 lakh are taxed at 10% without indexation benefits. Short-term capital gains (for investments held less than a year) are taxed at 15%​
Conclusion
The SBI Large & Midcap Fund is a suitable investment for those with a moderate to high-risk tolerance, offering a balanced mix of large-cap stability and mid-cap growth. Its long-term performance and diverse holdings make it an attractive option for investors looking to build wealth through equity investments.
If you’re considering investing, it’s essential to understand the fund’s risk profile and ensure it aligns with your investment goals. For more details, you can visit the official SBI Mutual Fund website or speak with a financial advisor​
