SBI LT Advantage Fund-III

SBI LT Advantage Fund-III is a long-term equity mutual fund designed for investors seeking capital appreciation through a diversified portfolio. Ideal for individuals with a higher risk appetite, this fund aims to generate substantial returns over an extended period. With a focus on quality stocks across various sectors, it provides an opportunity to benefit from India's growth story. The fund is managed by experienced professionals, ensuring strategic investment decisions that align with market trends.

Long-term capital appreciation focus
Diversified portfolio across sectors
Managed by experienced professionals
Ideal for risk-tolerant investors
Aligned with India's economic growth

Investment Thesis

SBI LT Advantage Fund-III presents a compelling investment opportunity due to its strong backing from the SBI group, a leader in the Indian banking sector. The fund is well-positioned to capitalize on the growth of digital services, and its attractive valuation compared to peers enhances its appeal for retail investors.

Strong promoter credibility with SBI's established reputation.
Significant growth potential in digital services sector.
Attractive valuation compared to similar funds in the market.
Diversified investment strategy mitigating risks.
Focus on long-term wealth creation for investors.

Opportunity vs Risk

Opportunities

Diversified investment across sectors
Potential for long-term capital growth
Managed by experienced fund managers
Access to equity market gains

Risks ⚠️

Market volatility affecting returns
High expense ratio compared to peers
Economic downturn impact on investments
Limited liquidity in certain assets

Peer Perspective

SBI LT Advantage Fund-III trades at a slight premium compared to peers like HDFC Mutual Fund and ICICI Prudential. A sustained improvement in margin stability could trigger a rerating, enhancing investor confidence.

📊 Stock Investment Checklist (100 Points)

SBI LT Advantage Fund-III • Updated: 2025-09-29 15:42:09

10

Business
High

The fund is in a future-ready sector with a clear investment model, but lacks a strong competitive moat.
10

Growth
High

Consistent revenue and profit growth observed over the past few years.
10

Profitability
High

ROE and ROCE are satisfactory, but OCF is slightly below net profit.
8

Valuation
High

Valuation metrics are in line with peers, but not particularly attractive.
7

Balance
High

Debt levels are manageable, but liquidity could be improved.
6

Governance
Good

Promoter holding is stable, but there are some concerns regarding pledging.
5

Drivers
Good

Growth catalysts exist, but execution risks are notable.
5

Technicals
Good

Market sentiment is neutral with moderate liquidity.

Final Score & Verdict

Score 48 / 100 • Decent

The fund shows decent potential with consistent growth, but faces challenges in governance and execution risks.