SBI Update: This SBI fund has worked wonders, turning a Rs 10,000 SIP into Rs 1.54 crore..
Most people investing in mutual funds look for quick returns, but the real magic happens with long-term investing. A prime example of this is the SBI Focused Fund, which has proven that even small amounts, invested consistently and patiently through SIPs (Systematic Investment Plans), can create substantial wealth over time.
If an investor had started a monthly SIP of just ₹10,000 in this fund 20 years ago, that investment would have grown to a corpus of approximately ₹1.54 crore today. This clearly demonstrates that long-term investing, despite market fluctuations, can yield spectacular results.
Consistent and Excellent SIP Returns
The biggest strength of the SBI Focused Fund is its consistent performance. Over the past 3, 5, 10, and 20 years, this fund has consistently delivered annual returns of over 16% through SIPs. This is why it has become the only SBI fund to have given excellent returns to investors across all major timeframes. The fund has delivered varying returns across different tenures. For example, the 3-year SIP return is 18.56% CAGR, the 5-year SIP return is 16.04% CAGR, and the 10-year SIP return is 16.09% CAGR. The 20-year return, however, has been truly exceptional.
Strong Performance with Lump Sum Investments Too
Not only with SIPs, but this fund also has a strong track record with lump sum investments. A ₹1 lakh investment made 20 years ago would have multiplied many times over today. However, experts believe that SIPs are a safer and better option for most retail investors.
How This Fund Invests
The SBI Focused Fund employs a specific investment strategy. It invests in a maximum of 30 companies and selects only those stocks in which the fund manager has the highest conviction. The fund always keeps at least 65 percent of its money invested in the stock market and invests in large, mid, and small-cap stocks as needed.
Disclaimer: This content has been sourced and edited from TV9. 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.
