Which SBI Mutual Fund is best in SIP?

SBI Mutual Fund is a joint venture between State Bank of India, India’s largest state-run bank and AMUNDI, the largest AMC from France which is also one of the leading fund management companies in the world. SBI Mutual Fund was set up in 1987 and was the second Mutual Fund to be set up after Unit Trust of India, which started in the year 1963.

SBI Mutual Fund is the third-largest Asset Management Company (AMC) in India by Assets under Management (AUM). The average AUM of SBI Mutual Fund AMC during the Apr-Jun 2019 quarter was INR 307,841 crores. The AUM for the latest quarter of Jul-Sept was INR 321,011 crores. SBI Mutual Funds house offers some of the best mutual funds in the respective categories to choose from.

Let us understand three of the best performing Mutual Funds from this fund house, their performance metrics and how investors with different risk appetites can benefit by investing in them, by way of a lump sum or through SIPs.

1. SBI Bluechip Fund – Direct (Growth)

About the Fund: The Fund is being managed by Ms Sohini Andani since September 2010. The objective of the fund is long term appreciation in capital through investment in a diversified group of Large-cap stocks.

The fund invests a minimum of 80% in Large Cap stocks, with the flexibility to invest up to 20% in equities other than large-cap stocks or debt and/or money market securities.

S & P BSE 100 Index is this scheme’s benchmark.

Returns : 

Taking the 5-year return from above as an example, an investor’s monthly SIP of INR 20,000 @ 11% (rounded off) for 25 years will grow to INR 3,18,11,624.Returns Calculation

This is against a total amount of INR 60,00,000 ( 20,000 X 25 years) invested. If we take the return since inception @ 14 % (14.11 % rounded off), the return amount will be INR 5,45,45,554. Notice the difference that a return of 3% can bring to the corpus for the same duration.

By using the SIP Calculator an investor can –

1. a) calculate the monthly SIP amount to be invested for reaching the target amount after the desired time duration
2. b) arrive at the amount expected after the given number of years with the estimated rate of return

Who should invest:

SBI Blue-chip Fund is one of the best mutual funds in the Large Cap category. The fund is suitable for investors who look for comfort in large-cap, blue-chip companies which are known for providing stability and support to the portfolio even at the lower end of markets.

This has been evident in recent market corrections.

2. SBI Small Cap Fund – Direct-Growth

About the Fund: The Fund is being managed by Mr R Srinivasan since November, 2013. The objective of this scheme is to provide long-term growth in capital by investing in a well-diversified set of small cap stocks.

S & P BSE Small Cap Index is this scheme’s benchmark. The scheme has been continuously in the top performing funds in the Small cap category and is amongst the best SBI Mutual Funds.

Returns

Taking the 5-year return from above as an example, an investor’s monthly SIP of INR 20,000 @ 18% (rounded off) for 25 years will grow to INR 11,64,66,242.Returns calculation

This is against a total amount of INR 60,00,000 ( 20,000 X 25 years) invested!

If we take the return since inception @ 24 % (23.97 % rounded off), the return amount will be INR 38,68,19,198. Notice the difference that 6% can bring to the corpus for the same duration.

Who should invest:

SBI Small Cap fund is one of the best mutual funds in its category. This fund is suited for investors who are not worried about the short term volatility in the markets and who look for market beating returns over a longer time frame.

3.SBI Magnum Multicap Fund – Direct Growth

About the Fund: The Fund is being managed by Mr Anup Upadhyay since February, 2017. The objective of the fund is to provide investors with opportunities for long-term growth in capital through active management of investments in a diversified basket of stocks.

S & P BSE 500 is this scheme’s benchmark.

Returns

Returns calculation

Taking the 5 year return from above as example, an investor’s monthly SIP of INR 20,000 @ 13% (rounded off) for 25 years will grow to INR 4,54,28,700.

This is against a total amount of INR 60,00,000 (20,000 X 25 years) invested !

If we take the return since inception @ 16 % (15.85 % rounded off), the return amount will be INR 7,93,04,356. Notice the difference that a return of 3% can bring to the corpus for the same duration.