SBI Equity Hybrid Fund Direct Growth

SBI Equity Hybrid Fund is an aggressive hybrid mutual fund that was launched on 9th October, 1995. The fund invests between 65% to 80% of its assets in equities and the remaining 20% to 35% in debt and money market instruments. This combination aims to deliver long-term capital appreciation while managing short-term market volatility. 

The fund follows the CRISIL Hybrid 35+65 Aggressive Index as its benchmark. This index is designed to represent a blend of equity and debt, aligning well with the fund’s allocation strategy and offering a balanced basis for performance comparison.

On the equity side, the fund maintains a diversified portfolio of high-growth companies, with a bias towards large-cap and quality mid-cap stocks. The debt allocation is used to provide stability and reduce overall portfolio risk. To enhance diversification, the fund also has the flexibility to invest in REITs, InvITs, and overseas securities.

Investment Strategy

The fund follows a blend of top-down and bottom-up approach to stock picking. It emphasizes quality businesses with strong fundamentals, sustainable earnings, and reasonable valuations. The equity portion aims to deliver growth, while the debt side provides stability and income.

Should I Invest In SBI Equity Hybrid Fund?

Since the fund invests in both equity and debt it offers a mix of growth and stability. The means, it is ideal for investors who:

- Are new to equity and want to ease into the market

- Seek better returns but also want the stability that comes with debt

- Want to stay invested for a medium to long term 

Taxation On SBI Hybrid Fund

Since the fund invests over 65% in equity, it is taxed like an equity fund:

Long-term Capital Gains (LTCG): Gains made after 12 months are tax-free up to ₹1.25 lakh in a financial year. Gains beyond this are taxed at 20%.

Short-term Capital Gains (STCG): Gains made within 12 months are taxed at 12.5%.

Allocation & Historical Returns

Currently, the fund's portfolio comprises 2.6% small-cap stocks, 59.08% large-cap stocks, and 11.42% mid-cap stocks.

With an AUM of ₹77794.0 crores, SBI Equity Hybrid Fund Direct Growth generated a return of 9.3% in 1 year, 13.8% in 3 years, 16.9% in 5 years. while its benchmark index (Aggressive Allocation Index) generated 0.0% in 1 year, 0.0% in 3 years, and 0.0% in 5 years.