SBI Long Term Fund Direct-IDCW: NAV, Returns & More

If you are looking at debt schemes for your portfolio, the SBI Long Term Fund Direct-IDCW recently posted its Net Asset Value (NAV) at ₹12.74 for its IDCW option, as of August 31, 2026.

What This Fund is All About

This open-ended debt scheme was launched by SBI Mutual Fund on December 21, 2022. Its main goal is to generate returns by investing in debt and money market instruments, specifically those maintaining a Macaulay duration greater than 7 years.

The fund carries a moderate risk profile, making it a consideration for those comfortable with some market fluctuations. It is benchmarked against the CRISIL Long Duration Debt A-III Index to measure its performance.

Key Numbers to Consider

• Current NAV (IDCW option, Direct Plan): ₹12.74 as of August 31, 2026
• Expense Ratio (Direct Plan): 0.32%
• Fund Size: ₹1,424.48 crore as of July 31, 2026
• Trailing Return (1 year): 4.1%
• Trailing Return (3 years): 6.33%
• Return Since Launch: 6.89%

Inside the Portfolio

A significant portion of your investment, 96.52%, goes into government-backed securities. This strategy results in an average maturity of 27.83 years and a modified duration of 10.13 years.

Currently, the fund yields 7.61% to maturity, reflecting the expected annual return if held until the debt instruments mature. This focus on government securities means a stable, long-term approach.

Getting Started with Investing

If you are ready to invest, the fund offers flexible minimum investment amounts. You can begin with a relatively small sum to get started.

• Minimum Initial Investment: ₹5,000
• Minimum Additional Investment: ₹1,000
• Minimum SIP (Systematic Investment Plan) Investment: ₹500

Good news for new investors: there is no exit load, meaning you won’t pay a fee if you decide to withdraw your investment. This makes it a flexible option for your financial planning.

Understanding the Tax Rules

For any investments made after April 1, 2023, capital gains are taxed based on your individual income slab. It’s important to factor this into your financial planning.

Similarly, any dividend income you receive from the fund will also be taxed according to your income slab. A 10% Tax Deducted at Source (TDS) applies to dividend amounts exceeding ₹5,000 annually.

Meet Your Fund Manager

The fund has been managed by Ardhendu Bhattacharya since July 1, 2025. With his expertise, the fund aims to meet its investment objectives.

For optimal results, the suggested investment horizon for this fund is greater than 5 years. This aligns with its long-term debt strategy, encouraging you to think about your financial future.