SBI Long Term Advantage Fund Series IV is a 10-year close-ended equity-linked savings scheme. The product is suitable for investors who are seeking capital appreciation over a period of 10 years. This means that while investing in such a fund, you need to link it with a long-term financial goal which is above 10 years.
The fund provides income tax benefit under Section 80C of the Income Tax Act 1961.
The investment objective of the scheme is to generate capital appreciation over a period of ten years by investing predominantly in equity and equity-related instruments of companies along with proving income tax benefit. However, there can be no assurance that the investment objective of the scheme will be realized.
New Fund Offer time period
New Fund Offer opened on December 30, 2017, and it will get close on March 29, 2017.
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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.
For repurchase including switch out of units: In respect of valid applications received up to 3 pm on any business day by the mutual fund at any of the designated collection centers, same day’s closing NAV shall be applicable. In respect of valid applications received after 3 pm on any business day by the mutual fund at any of the designated collection centers, the closing NAV of the next business day shall be applicable.
Dividend declaration under the dividend option of the scheme is subject to the availability of distributable surplus and at the discretion of the fund manager, subject to approval of the trustees and no returns are assured under the scheme.
Tax treatment for investors
Investment made in the scheme will qualify for a deduction from gross total income up to Rs.150000 (along with other prescribed investments) under section 80C of the Income Tax Act, 1961. Investors are advised to refer to the details in the Statement of Additional Information & also independently refer to their tax advisor.
The scheme will offer redemption /Switch out on every business day at NAV based prices after the lock-in period of three years from the date of allotment.
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Risk profile of the scheme
SBI Long Term Advantage Fund – Series IV would be investing in equities, cumulative convertible preference shares, fully convertible debentures, bonds of companies, and money market instruments (such as term/notice money market, reverse repos and any alternative to the call money market as may be directed by the RBI). The liquidity of the scheme’s investments is inherently restricted by trading volumes and settlement periods. In the event of an inordinately large number of redemption requests after completion of the lock-in period, or of a restructuring of the scheme’s investment portfolio, these periods may become significant. In view of the same, the trustees have the right in their sole discretion to limit redemptions (including suspending redemptions) under certain circumstances.
Minimum Application Amount
Purchase: Rs 500 and in multiples of Rs 500 thereafter.
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It is to be noted that investors should consult their financial advisers if in doubt about whether the product is suitable for them or not.