SBI Mutual Fund: Earn excellent returns by investing in these SBI Mutual Fund schemes..
Best SBI Mutual Fund Schemes: Mutual funds have long been the preferred choice for retail investors looking to create wealth through the Indian stock market. SBI Mutual Fund, one of the country's largest fund houses, enjoys the trust of millions of investors.
If you wish to build a substantial corpus by investing your hard-earned money wisely, certain select schemes from SBI Mutual Fund could prove to be excellent options. Let us explore some of the best SBI MF schemes that have delivered multi-fold returns to investors over the long term.
**Star Schemes in Small-Cap and Contra Categories**
These schemes are highly popular among investors seeking record-breaking returns in exchange for higher risk:
**SBI Small Cap Fund:** This fund invests in small-sized, rapidly growing companies. The scheme has delivered an annualized compounded return (CAGR) of over 20% over the long term (5 to 10 years). It is ideal for investors willing to commit to an investment horizon of at least 5–7 years.
**SBI Contra Fund:** This fund operates on a 'value investing' strategy. The fund manager bets on companies that are currently undervalued in the market but possess extremely strong fundamentals. In recent years, this fund has outperformed most other funds in its category.
**Balance and Stability in Large-Cap and Mid-Cap**
If you prefer not to take excessive risk and seek a combination of portfolio stability and solid growth:
**SBI Large & Midcap Fund:** This fund offers a balanced mix of the country's top large-cap and mid-cap companies. It handles market volatility effectively, delivering steady growth while mitigating risk.
**SBI Bluechip Fund:** Investing in India's largest companies and market leaders, this fund is a classic choice for new investors and those who prefer safer investment avenues. Substantial Returns Alongside Tax Savings (ELSS)
If you wish to benefit from stock market growth while saving on taxes, the SBI Long Term Equity (ELSS) tax-saving fund is an excellent choice. Investments in this fund qualify for a deduction of up to ₹1.5 lakh under Section 80C of the Income Tax Act. It features a 3-year lock-in period, which is the shortest among tax-saving options (such as PPF or FD).
Hybrid Funds for Balanced and Moderate-Risk Investors
SBI Equity Hybrid Fund: This scheme invests a significant portion of your money in the stock market and a part in government bonds. During sharp market downturns, its debt portfolio helps safeguard your capital.
SBI Balanced Advantage Fund: This is a dynamic asset allocation fund that automatically adjusts the ratio between equity and debt based on market valuations.
SIP or Lump-sum: How to Start Investing?
You can invest in all these SBI schemes in two ways:
Systematic Investment Plan (SIP): You can start disciplined investing with a small amount of just ₹500 per month. SIPs offer the significant advantage of rupee-cost averaging.
Lump-sum: If you have a lump-sum amount available, you can start with a minimum investment of ₹1,000 or ₹5,000.
These SBI mutual fund schemes have the potential to generate inflation-beating returns over the long term. However, before investing in any scheme, ensure you properly assess your financial goals, investment horizon, and risk appetite.
Disclaimer: This content has been sourced and edited from Money Control. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.
