SBI Long Term Equity Fund Turns ₹5000 SIP into ₹7.22 Crores: Should You Invest Too?
New Delhi, April 7 If you’ve ever wondered whether consistent long-term investing really pays off, the SBI Long Term Equity Fund has provided a powerful real-world example. Celebrating its 32nd anniversary, the fund has demonstrated how disciplined Systematic Investment Plans (SIPs) can lead to massive wealth accumulation—even from modest monthly contributions.
₹5,000 SIP Turned into ₹7.22 Crores
Launched on March 31, 1993, this Equity Linked Savings Scheme (ELSS) offers dual benefits—wealth creation and tax savings under Section 80C. According to SBI Mutual Fund data, if an investor had started a SIP of just ₹5,000/month at inception, the fund value would now be around ₹7.22 crore as of March 28, 2025.
That’s with a total invested amount of just ₹19.25 lakh over 32 years, delivering a CAGR of nearly 17.94%.
If the SIP had been ₹10,000/month, the fund value would now stand at a whopping ₹14.44 crore.
Historical Returns That Outperformed Benchmarks
The SBI Long Term Equity Fund has consistently beaten its benchmark across time frames:
| Time Horizon | Fund Return (CAGR) | Benchmark Return |
|---|---|---|
| 3 Years | 23.42% | 13.89% |
| 5 Years | 24.31% | 17.17% |
| 10 Years | 17.59% | 15.14% |
| 15 Years | 16.03% | 14.30% |
Fund Manager: Dinesh Balachandran, managing since September 2016, has played a key role in navigating this fund through volatile markets while maintaining strong performance.
Should You Invest?
The SBI Long Term Equity Fund is best suited for:
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Long-term investors looking to build wealth gradually
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Individuals aiming for tax-saving under Section 80C
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Investors with moderate to high risk appetite
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Those comfortable with a 3-year lock-in period
Important Note: Past performance does not guarantee future returns. Equity funds are subject to market risks and volatility.
While this fund has delivered stellar results historically, you should consider your financial goals, risk tolerance, and investment horizon before committing.
Risk & Suitability
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Risk Level: ★★★★☆ (Very High Risk as per riskometer)
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Ideal Investment Horizon: 5+ years
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Lock-in Period: 3 years (ELSS requirement)
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Tax Benefit: Up to ₹1.5 lakh under Section 80C
Final Word
If you’re aiming for long-term wealth creation with tax efficiency, and can commit to a disciplined SIP strategy, the SBI Long Term Equity Fund remains a compelling option in 2025. However, consult a SEBI-registered financial advisor before making any mutual fund investment decision.
