SBI Mutual Fund: SBI Mutual Fund is one of India’s leading mutual fund houses, known for its strong track record of delivering excellent returns across various schemes. Over the last three years, at least six SBI equity mutual fund schemes have given impressive annual returns ranging between 20% and 30%.
If you are an investor or planning to start investing in equity mutual funds, these schemes might catch your attention. However, should you invest in them just because of their past returns? Let’s explore these schemes, their performance, risks, and whether they align with your investment goals.
Top 6 SBI Equity Mutual Fund Schemes with High Returns
The following six SBI Mutual Fund schemes have delivered exceptional returns over the last three years:
| Scheme Name | 3-Year CAGR Return (%) |
|---|---|
| SBI PSU Fund – Direct Plan | 30.71% |
| SBI Infrastructure Fund – Direct Plan | 24.38% |
| SBI Long Term Equity Fund (ELSS) – Direct Plan | 23.66% |
| SBI Healthcare Opportunities Fund – Direct Plan | 23.63% |
| SBI Contra Fund – Direct Plan | 22.42% |
| SBI Consumption Opportunities Fund – Direct Plan | 20.28% |
These funds cater to different sectors and investment strategies. Let’s look at them in detail.
1. SBI PSU Fund – Direct Plan
- Category: Sectoral Fund (PSU Companies)
- 3-Year CAGR: 30.71%
- Investment Focus: Public Sector Undertakings (PSUs)
- Risk Level: Very High
This fund primarily invests in government-owned companies across various sectors such as banking, energy, and infrastructure. Over the past three years, PSUs have seen strong growth due to policy reforms and increasing investor interest, leading to stellar returns of over 30% per year.
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2. SBI Infrastructure Fund – Direct Plan
- Category: Sectoral/Thematic Fund (Infrastructure)
- 3-Year CAGR: 24.38%
- Investment Focus: Infrastructure-related industries
- Risk Level: Very High
This fund focuses on companies engaged in infrastructure development, including roads, railways, power, and construction. With the Indian government’s push for infrastructure development, this sector has seen massive growth, leading to impressive returns.
3. SBI Long Term Equity Fund (ELSS) – Direct Plan
- Category: Equity Linked Savings Scheme (ELSS)
- 3-Year CAGR: 23.66%
- Investment Focus: Diversified equity portfolio with tax benefits
- Risk Level: Very High
- Tax Benefit: Eligible for ₹1.5 lakh tax deduction under Section 80C
This ELSS (tax-saving) fund offers dual benefits of capital appreciation and tax savings. With a mandatory 3-year lock-in period, it allows long-term growth, making it a popular choice among investors looking for both wealth creation and tax benefits.
4. SBI Healthcare Opportunities Fund – Direct Plan
- Category: Sectoral Fund (Healthcare & Pharma)
- 3-Year CAGR: 23.63%
- Investment Focus: Pharmaceutical and healthcare companies
- Risk Level: Very High
This fund invests in India’s fast-growing healthcare and pharmaceutical sector. With increasing healthcare spending, aging populations, and medical advancements, this fund has provided consistent long-term returns.
5. SBI Contra Fund – Direct Plan
- Category: Contra Fund
- 3-Year CAGR: 22.42%
- Investment Focus: Undervalued stocks with long-term potential
- Risk Level: Very High
This fund follows a contrarian investment strategy, meaning it invests in companies that are undervalued or out of favor in the market but have strong long-term potential. It aims to capitalize on market mispricing and generate high returns over time.
6. SBI Consumption Opportunities Fund – Direct Plan
- Category: Thematic Fund (Consumption)
- 3-Year CAGR: 20.28%
- Investment Focus: Companies in the consumer sector
- Risk Level: Very High
This fund focuses on consumer-driven industries, such as FMCG, retail, and e-commerce. As India’s consumption story continues to grow with rising disposable income, this fund has the potential for strong long-term gains.
Should You Invest in These Funds?
The high returns of these schemes might make them look attractive, but should you invest in them based on past performance alone? The answer is NO.
Here are some key factors to consider:
1. Market Risks Are High
All of these funds are equity funds with very high risk, meaning their performance depends on market fluctuations. Past returns are not guaranteed for the future.
2. Sector-Specific Risks
Some of these funds are sectoral or thematic funds (e.g., PSU, Infrastructure, Healthcare, Consumption). Investing in sectoral funds requires in-depth knowledge and timing the market correctly, which can be challenging.
3. Long-Term Investment Is Key
Equity funds work best for long-term investors. If you are investing for 5-10 years or more, these funds might help you generate wealth.
4. Diversification Matters
Relying on a single fund or sector is risky. Instead, investors should maintain a diversified portfolio that includes large-cap, mid-cap, and small-cap funds across various sectors.
SBI Mutual Fund: Who Should Invest?
✅ Ideal for:
- Long-term investors (5+ years)
- Investors with high-risk appetite
- Those looking for sectoral exposure in PSU, healthcare, infrastructure, etc.
- ELSS investors seeking tax-saving benefits
❌ Not suitable for:
- Conservative investors
- Short-term investors
- Those uncomfortable with high market risks
- Investors who want stable and predictable returns
Conclusion
SBI Mutual Fund’s top-performing equity schemes have delivered outstanding returns of 20-30% annually over the past three years. However, investors should not invest based only on past performance.
Before investing, consider: ✔ Your financial goals ✔ Risk tolerance ✔ Investment horizon ✔ Portfolio diversification
For long-term investors with a high-risk appetite, these funds might be excellent wealth-building opportunities. However, it’s always wise to consult a financial advisor before making any investment decisions.
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