SBI: State Bank of India (SBI) Mutual Fund, one of India’s oldest and largest Asset Management Companies (AMCs), has been making waves in the investment world. With a diverse portfolio of 61 mutual fund schemes, SBI Mutual Fund offers investors a wide range of options to grow their wealth. Let’s explore the top 7 SBI mutual funds that have delivered exceptional Systematic Investment Plan (SIP) returns over the past three years.
SBI Mutual Fund
Established in 1987, SBI Mutual Fund has grown to become India’s leading AMC, managing assets worth crores of rupees. The fund house offers 37 equity mutual funds, 22 debt funds, 11 hybrid funds, and 2 other funds, catering to various investor needs and risk appetites.
Top Performing SBI Mutual Funds
1. SBI PSU Fund – Direct Plan
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This thematic fund has been a stellar performer, delivering an impressive 49.53% annualized SIP return over the last three years. With an Assets Under Management (AUM) of Rs 4,851 crore and a Net Asset Value (NAV) of Rs 35.36, it has outperformed its benchmark, the BSE PSU TRI. A monthly SIP of Rs 25,000 in this fund would have grown to Rs 17.73 lakh in three years, showcasing its potential for wealth creation.
2. SBI Infrastructure Fund – Direct Plan
The sectoral SBI Infrastructure Fund has generated a remarkable 47.57% annualized SIP return in the three-year period. With an AUM of Rs 4,790 crore and a NAV of Rs 58.98, this fund has consistently outperformed its benchmark, the NIFTY Infrastructure TRI. A Rs 25,000 monthly SIP would have grown to Rs 16.46 lakh in three years, highlighting its strong performance.
3. SBI Long Term Equity Fund Direct Plan-Growth
This Equity Linked Savings Scheme (ELSS) fund has delivered an impressive 40.30% annualized SIP return over three years. With an asset base of Rs 4,790 crore and a NAV of Rs 485.7643, it has outperformed its benchmark, the BSE 500 TRI. A monthly SIP of Rs 25,000 would have grown to Rs 15.8 lakh in three years, making it an attractive option for tax-saving investments.
Key Features of These Top Performers
1. Low Expense Ratios: These funds boast competitive expense ratios ranging from 0.72% to 1.0%, ensuring that a larger portion of returns goes to investors.
2. Affordable Entry Points: With minimum SIP investments starting at just Rs 500 and lump sum investments ranging from Rs 1,000 to Rs 5,000, these funds are accessible to a wide range of investors.
3. Consistent Outperformance: All three funds have consistently outperformed their respective benchmarks since their inception in January 2013, demonstrating their ability to generate alpha.
4. Diversification: These funds offer exposure to different sectors and themes, allowing investors to diversify their portfolios effectively.
The Power of SIP Investing
The impressive growth of a Rs 25,000 monthly SIP in these funds over three years highlights the power of systematic investing. By investing regularly, investors can benefit from rupee cost averaging and the power of compounding, potentially leading to significant wealth creation over time.
Considerations for Investors
While these funds have shown exceptional performance, it’s important for investors to consider their risk tolerance, investment goals, and time horizon before investing. Past performance doesn’t guarantee future returns, and it’s advisable to consult with a financial advisor to determine the most suitable investment strategy.
Conclusion
SBI Mutual Fund’s top-performing schemes have demonstrated their ability to generate substantial returns for investors through SIP investments. With a mix of thematic, sectoral, and tax-saving options, these funds offer various opportunities for investors to grow their wealth. However, as with all investments, it’s crucial to conduct thorough research and align your choices with your financial goals and risk profile.
