Best Sbi Mutual Fund Schemes For Investors

SBI Mutual Fund is one of the largest mutual fund houses in India by asset size, with approximately 60-72 schemes on offer. These include debt schemes, hybrid schemes, and several equity funds. SBI equity mutual funds cater to investors seeking a diversified portfolio and maximised capital appreciation in the long run. The risk quotient of the best SBI equity funds tends to range from moderate to high, given the inherent volatility of equity investments. Here, we will discuss the various schemes offered by SBI Mutual Fund to determine which is the best to invest in.

SBI's equity funds

SBI Mutual Fund offers 37 equity funds, including the SBI Equity Hybrid Fund, which is an open-ended aggressive hybrid scheme. The fund seeks to provide investors with long-term capital appreciation and the liquidity of an open-ended scheme by investing in a mix of debt and equity. The fund has provided trailing returns of 26.4% (1yr), 13.11% (3yr), 15.93% (5yr) and 15.77% (since launch). The current Net Asset Value (NAV) as of August 30, 2024, is Rs 282.20 for the Growth option of its Regular plan. The expense ratio is 1.4%, and the minimum investment required is Rs 1,000.

The SBI Equity Hybrid Fund has a diversified portfolio, investing in a mix of debt and equity. As of July 31, 2024, the fund held Assets under Management (AuM) worth Rs 73,077.97 crore. The fund's portfolio primarily consists of investments in equities (72.32%), debts (21.44%), and cash & cash equivalents (3.9%). The top equity holdings include Reliance Industries (6.46%), and the top sectors include refineries & marketing, telecom, and non-banking financial companies.

The SBI Equity Hybrid Fund is managed by Rama Iyer Srinivasan, Rajeev Radhakrishnan, and Mansi Sajeja. The fund was launched on December 31, 1995, and is benchmarked against the CRISIL Hybrid 35+65 Aggressive Index. The suggested investment horizon for this fund is >3 years.

Other SBI equity funds include the SBI Long Term Equity Fund, SBI Consumption Opportunities Fund, SBI Healthcare Opportunities Fund, SBI Large & Midcap Fund, and SBI Nifty Next 50 Index Fund, among others.

SBI's debt schemes

SBI Mutual Fund is a joint venture between the State Bank of India and Amundi, a French asset management company. SBI Mutual Fund offers 22 debt schemes, in addition to 37 equity funds, 11 hybrid schemes, and 2 other types of funds, such as gold funds.

• SBI Magnum Gilt Fund: This fund has provided annualised returns of 7.37% and 7.74% over the past 3 and 5 years, respectively. The minimum investment amount for a lump sum is ₹5,000, and ₹500 for a Systematic Investment Plan (SIP).
• SBI Dynamic Bond Fund: This fund is ranked #4 out of 21 in Dynamic Bond funds.
• SBI Credit Risk Fund: This fund is ranked #3 out of 14 in Credit Risk funds.
• SBI Magnum Income Fund: This fund is ranked #1 out of 12 in Medium to Long Duration funds.
• SBI Magnum Medium Duration Fund: This fund is ranked #3 out of 11 in Medium Duration funds.
• SBI Corporate Bond Fund: This fund offers investors exposure to corporate bonds.
• SBI Short Term Debt Fund: As the name suggests, this fund is suitable for those with a short-term investment horizon.
• SBI Floating Rate Debt Fund: This fund invests in floating rate debt instruments.
• SBI CRISIL IBX SDL Index - September 2027 Fund: This fund is designed to mature in September 2027 and tracks the CRISIL IBX SDL Index.
• SBI CRISIL IBX Gilt Index - April 2029 Fund: This fund is designed to mature in April 2029 and tracks the CRISIL IBX Gilt Index.
• SBI CRISIL IBX Gilt Index - June 2036 Fund: This fund is designed to mature in June 2036 and tracks the CRISIL IBX Gilt Index.
• SBI Magnum Constant Maturity Fund: This fund is suitable for investors looking for a constant maturity profile.
• SBI Magnum Low Duration Fund: This fund is suitable for investors with a low-risk appetite and a short- to medium-term investment horizon.
• SBI Magnum Ultra Short Duration Fund: This fund is suitable for investors with a short-term investment horizon and a low-risk appetite.

When considering SBI's debt schemes, it is important to remember that mutual fund investments are subject to market risks, and there is no guarantee that the fund's objective will be achieved. Investors should carefully read all scheme-related documents and consult with financial, legal, and tax advisors before making any investment decisions.

SBI's hybrid schemes

SBI Mutual Fund offers 11 hybrid schemes. These schemes seek to provide investors with long-term capital appreciation alongside the liquidity of an open-ended scheme by investing in a mix of debt and equity. Aggressive hybrid funds, a type of hybrid scheme, invest 65-80% of your money in equity shares and the rest in bonds. Their returns are slightly lower than pure equity funds, but they also fall relatively less when the stock markets decline, making them suitable for conservative investors or first-time investors who are not used to sharp ups and downs.

• SBI Equity Hybrid Fund - Regular Plan - Growth
• SBI Conservative Hybrid Fund
• SBI Retirement Benefit Fund - Aggressive Hybrid Plan
• SBI Multi-Asset Allocation Fund
• SBI Balanced Advantage Fund
• SBI Retirement Benefit Fund - Conservative Hybrid Plan

One of the largest schemes offered by SBI Mutual Fund is the SBI Equity Hybrid Fund. This fund has provided 15.44% returns since its inception 27 years ago. As of 10 August 2023, the fund's NAV was ₹222.4884, and its AUM was ₹59,810 crore as of 31 July 2023. The minimum SIP amount for this fund is ₹500.

Another notable hybrid scheme is the SBI Conservative Hybrid Fund, which has provided annualised returns of 11.02% and 12.16% over the past three and five years, respectively. The lump-sum minimum amount for this fund is ₹5,000, and for SIP, it is ₹500.

It is important to remember that mutual fund investments are subject to market risks, and past performance is not a guarantee of future results.

SBI's ESG fund

The SBI Magnum Equity ESG Fund is a Thematic ESG fund, where the fund management team can invest in companies of different sizes, depending on where maximum gains are expected. This versatility makes Thematic ESG funds suitable for equity fund investors as the job of stock selection is left to the fund manager.

The expense ratio of the SBI Magnum Equity ESG Fund is 1.94, and the minimum SIP investment is ₹500. As of 30-Mar-2024, the NAV of the fund was ₹207.0883, with an AUM of ₹5,482 Cr as of 29-Feb-2024.

The fund has delivered 15% returns since its inception 33 years ago. It is important to note that this fund has a very high-risk rating.

SBI's gold fund

SBI Gold Fund is a commodities mutual fund scheme launched by SBI Mutual Fund in 1987. The fund seeks to provide returns that closely correspond to returns provided by the SBI Gold Exchange Traded Scheme (SBI GETS). The current fund manager is Raviprakash Sharma, and the fund is rated as high risk.

The minimum Systematic Investment Plan (SIP) investment is 500 Indian Rupees (INR) and the minimum lumpsum investment is 5,000 INR. The fund has an exit load of 1% if redeemed within 15 days. The expense ratio is 0.1% or 0.42% according to different sources. As of 30 June 2023, the fund had an Asset Under Management (AUM) of 1,341 Crore INR.

The portfolio of the SBI Gold Fund is largely conservative, with most holdings in Large Cap stocks and debt instruments. As of 30 June 2023, the fund had invested 98% in commodities and 1.56% in cash and cash equivalents.

The SBI Gold Fund is best suited for investors who want to invest in gold and expect returns in line with the returns provided by the price of gold. However, it is important to note that gold is not considered a good long-term investment avenue, and investors may want to consider other alternatives such as the Sovereign Gold Bond Scheme offered by the Government of India, which offers a guaranteed return of 2.5% per year over the return provided by the price of gold.

Frequently asked questions