Can a monthly investment of just Rs 10,000 turn you into a millionaire? Yes, it absolutely can.
While many people believe becoming a millionaire requires a high-paying job, business success, or winning the lottery, that’s not the case.
With the right mutual fund scheme, even a modest monthly investment can lead to substantial wealth over time. One such scheme is the SBI Long Term Equity Fund (SBI LTEF).
A Successful Investment Story
Launched in March 1993, SBI LTEF has made many investors wealthy.
If you had invested Rs 10,000 every month in this fund from the start, your investment would have grown to Rs 14.44 crore by March 2025.
This equity fund has delivered an impressive 17.94% CAGR return over the years.
Tax Saving Benefits
SBI LTEF is also a tax-saving fund, making it even more attractive. As an ELSS (Equity Linked Savings Scheme), it offers tax deductions under Section 80C of the Income Tax Act.
By investing Rs 10,000 monthly, an investor would contribute Rs 1,20,000 in a year.
Over 32 years, this can lead to significant tax savings, especially for those in higher tax brackets. So, this fund not only grows your wealth but helps you save on taxes as well.
Start Investing with Just Rs 500
You can start investing in the SBI LTEF with as little as Rs 500 per month through a Systematic Investment Plan (SIP).
This fund has outperformed its benchmark index, BSE500 TRI, with a 16.03% CAGR return over 15 years, compared to the index’s 14.30%.
The fund’s total assets under management (AUM) stand at Rs 27,730.33 crore, indicating its popularity and trust among investors.
Remember, since it’s a tax-saving fund, you can only withdraw your money after three years.
Expert Tips
While past performance is important, financial experts advise not to base your investment decisions solely on it.
All equity investments come with risks, especially in the short term, though the risk decreases with a longer investment horizon.
Also, since this is a tax-saving scheme, you’ll only benefit from the tax deduction if you opt for the old tax regime.
If you choose the new tax regime, you won’t get tax benefits for investing in this scheme.
