Financial Technology

With 23.9% Annualised Returns On 3 Years SIP, This Tax Saver Equity Fund Is Good For SIP

Union Long-Term Equity Fund

Union Long-Term Equity Fund

This is a tax saver equity small fund of its category. This fund is suitable for Long Term Capital Appreciation along with Tax savings u/s 80C of the Income Tax Act. The fund has been rated 4-star by Value Research and 4-star by CRISIL. Given that it is an equity mutual fund, it is classified as a very high-risk scheme for investment. 

As of October 31, 2022, under the fund’s Direct Plan-Growth option, it has Rs 576 crore in assets under management (AUM), while, Net Asset Value as of November 24, 2022, is Rs 46.6200.

The benchmark of the fund is S&P BSE 500 TRI. The scheme seeks to achieve long-term capital appreciation by investing substantially in a portfolio consisting of equity & equity-related securities. However, there can be no assurance that the investment objective of the scheme will be achieved. 

Investment Details

Investment Details

A monthly SIP of Rs 10,000 in this fund would i.e. Rs 3,70,000 in years would give Rs 5,26,395 worth of investments i.e. 23.65% annualised returns. 

  • Minimum Investment – Rs 500 and in multiples of Rs. 500 thereafter
  • Minimum Additional Investment – Rs 500
  • Minimum SIP Investment – Rs 500
  • Minimum withdrawal – Rs 500
  • Exit Load -Nil
  • Expense Ratio – 1.61% as on 31 October 2022
  • Lock-in period – 3 Years

Annualised Returns

Annualised Returns

Lump-Sum Investment Returns

The fund under the Direct-Growth option has given 13.56% annual average returns since its inception, which is below its category average of 15.38% annual average returns. The scheme has delivered good annualised returns on investments over the years. In terms of returns, the fund performed above average among its peers.

Investment Tenure Returns
1 Year 4.09%
2 Year 25.06%
3 Year 20.55%
5 Year 13.77%

Returns on SIP

SIP Tenure Returns
1 Year 16.98%
2 Year 17.15%
3 Year 23.90%
5 Year 19.04%

Portfolio

Portfolio

The fund has 95.69% investments in domestic equities. In terms of equity investment distribution, the fund has invested 61.24% in large-cap stocks, 7.52% in mid-cap stocks, and 7.86% in small-cap stocks. A minor 0.06% is invested in Debt whereas, 4.25% is in cash & cash equivalent instruments. The fund has total investments in 62 stocks, whereas, it has invested in 14 sectors, the majority in the Financial sector.

The top 10 invested sectors of the fund are Financial, Technology, Energy, Automobile, Consumer Staples, Capital Goods, Chemicals, Healthcare, Services, and Communication. As mentioned, the fund has major investments in the financial sector, and the top holdings are from the financial sector. The top 10 holdings are ICICI Bank, HDFC Bank, Infosys, Reliance, Tata Consultancy Services (TCS), State Bank Of India (SBI), Axis Bank, Bharti Airtel, Bajaj Finance, and NTPC.

Disclaimer

Disclaimer

Mutual fund investments are subject to market risk. Read all scheme-related Terms and Conditions carefully before investing. The above-mentioned information is purely informational and doesn’t guarantee any return. The Greynium Information Technologies and the Author are not liable for any losses caused as a result of a decision based on the article.

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