Is Sbi Blue Chip Fund Tax-Free?

by Lena Burkut Writer

The ultimate aim of the SBI Bluechip fund is to offer investors a chance for long-term capital growth through active investment management in the varied basket of a large equity cap. Minimum of 80% of funds are invested in large-cap stocks. The large-cap stocks are the companies that are well established with good brand equity and are market leaders in their respective industry. 

 

This particular fund not only aims to offer capital growth to the investors but generates wealth. The SBI Bluechip Fund mainly invests in various large-cap equities as well as equity-related instruments. Thus, the risk is relatively high. The term blue chip fund might appear an entirely new term to the investors investing in mutual funds. Bluechip fund means the fund house invest in bluechip companies that are in companies which are well established. The SBI Mutual fund, or to be precise, bluechip fund’s portfolio primarily comprises of large-cap stocks.

 

When it comes to making any investment, the very first thing that comes from the mind of the investors is how to save tax from investing. So, while investing, you might think whether sbi bluechip tax saver fund will benefit you or not in saving tax. Here is how it will be taxed. 

 

 The capital, to be precise, long-term which is gained above 1lakh rupees after making the sale of units after one year from the date of allotment is taxed @ of 10%. In case of capital gains for short-term made on the sale of units within a year from the allotment date will be imposed @ of 15%. This fund is 5* rated mutual fund and investors are investing massively in this fund. This particular SBI Mutual Fund has a lower expense ratio.

 

Who must invest?                                                               

 

As the SBI bluechip fund aims at long-term appreciation, thus the investors who are interested in investing for 3-5 years and keen on generating wealth through higher returns, then SBI bluechip fund is the ultimate option for those.

An individual must keep in mind that when the investment is for long-term with hope for high returns, then he or she must tolerate moderate losses occasionally. As SBI bluechip fund makes the significant investment in large-cap equities, so an individual who can bear and accept reasonable risks must go for this mutual fund.

 

Although this mutual fund carries moderate risks, large-cap shares decrease the unpredictability even when the market condition is tight. Therefore, it is excellent for those who like making an investment in well-known brands instead of investing in emerging companies.

 

The question which continually comes on the mind of the investors is sbi bluechip fund tax saver or not. The returns within one year from the investment are taxable if it is redeemed or else it is tax-free. 

 

The viewpoint of the investment

 

1.    This mutual fund follows a unique strategy which is known as bottom-up investment.

2.    It focuses on the sector dynamics

3.    This mutual fund concentrates on better stock selection in various sectors.

4.    80%-100% investments are made in large-cap companies with one-year perception

5.    20% of investments are made in mid-cap companies with 2-3 perception

 

Expert view

 

This mutual fund from SBI offers the investors with excellent chance to enjoy massive growth of the funds over a lengthy period. It allows efficient harmonization and organization of investment in a variety of equity stocks. The fund is specific about investing exclusively in those companies which have high capitalization in the market.

The investors can find both long and medium-term investment opportunities in this mutual fund. It is appropriate for individuals who are interested in investing in blue chip companies in India. This mutual fund is chiefly large-cap mutual fund together with allocation in soaring income-generating mid-cap fund.

 

Application process

 

When you decide to invest in SBI bluechip fund, the application can be made online or walk-in to the nearest SBI mutual fund office. The executives at the office will guide you thoroughly. When at the branch, you need to fill a KYC form. After you are done, you will be directed as to how to invest. For any assistance, you can directly make a call to the 24*7 toll-free number.

 

Wrapping up

 

The SBI bluechip mutual fund is a well-managed large-cap mutual fund. Its success lies in creating considerable wealth for the investors and has become immensely popular among investors over the past few years.

If you are keen on investing in this mutual fund and want to know whether sbi bluechip fund is taxable or not, then get in touch with the nearest branch; all your queries will be resolved, and you can proceed to invest. 

 

 

 

 

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Created on Nov 28th 2019 01:37. Viewed 564 times.

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