Top SBI Mutual Fund schemes for 2018SBI Mutual Fund has 15 equity funds, 10 debt funds and six hybrid funds, making a total of 31 mutual fund schemes as of today. In this article, we pick from amongst them three best SBI funds for you. (Note that other fund houses also have good funds and we are not recommending that you should only invest in SBI Funds.)

SBI Small Cap Fund: This fund has been around since September 2009 and it will soon complete 10 years of existence. Its return since launch has been 21.05% and it has outperformed its benchmark over various time periods. The outperformance has been particularly strong in the past year with the fund delivering 16.27% compared to -2.39% for its benchmark.

Fund/Benchmark 1 year 3 years 5 years Since Inception
SBI Small Cap Fund 16.27% 22.82% 36.10% 21.05%
Nifty Small Cap 250 TRI -2.39% 16.02% 26.59% N/A

Data as on 08/09/2018, Source: Value Research, Regular Plans only

The fund is managed by R Srinivasan who has been at its helm since 2013. With a size of Rs 917 crore, it is also very nimble. Other star performers in the small-cap category like DSP Small Cap Fund with a size of Rs 5,506 crore are simply hobbled by their weight. This is because small-cap companies tend to be very illiquid and cannot accommodate large purchases or sales by the mutual fund.

Who should invest: SBI Small Cap Fund is suitable for those investors with a time horizon of more than five years and a very high-risk appetite. Small cap funds tend to be volatile in the extreme, but also can be very rewarding over the long run.

SBI Focused Equity Fund: This is a focused fund with a mandate to invest in less than 30 stocks. However, these stocks can be across market capitalisation. The fund was launched in October 2004 and has delivered 20.9% CAGR since then. It has beaten its benchmark over almost every time-periods. 

Fund/Benchmark 1 year 3 years 5 years 10 years
SBI Focused Equity Fund 17.52 17.09 23.58 17.92
Nifty 100 TRI 14.15 17.44 19.32 12.25

Data as on 08/09/2018, Source: Value Research, Regular Plans only

This fund (like SBI Small Cap Fund) is managed by R Srinivasan who has been at its helm since May 2009. It currently holds 29 stocks. It can hold stocks across market-cap, but at present, about 68% of the portfolio is in large caps. This greatly cuts down on the risk in the fund.

Who should invest: A focused fund holds fewer stocks than ordinary, diversified equity funds, so it carries a correspondingly higher risk and a higher potential return. An investor in this fund must have a moderate-to-high investment appetite and a high level of conviction in the fund and its manager.

SBI Bluechip Fund: This is the flagship fund of SBI Mutual Fund and flagship funds are usually well taken care of. They are given enormous management attention and have the best fund managers assigned to them. SBI Bluechip is a behemoth with an AUM of Rs 20,284 crore. It has beaten its benchmark across most time periods. The fund has struggled to do so in more recent years but this has been a problem across actively managed large-cap funds.  

Fund/Benchmark 1 year 3 years 5 years Since Inception
SBI Bluechip Fund 7.4% 14% 20.5% 13.6%
Nifty 100 TRI 16.6% 17.1% 18% 12.5%

Data as on 08/09/2018, Source: Value Research, Regular Plans only

The fund has been managed by Sohini Andani since September 2010 and has delivered 13.6% CAGR since inception.

Who should invest: This is a diversified large-cap fund that can hold only the top 100 listed companies in India as per SEBI regulations. This makes it a lot less risk than mid and small-cap funds. It is suited for investors with a moderate risk appetite. They should have a time horizon of more than five years in mind.

Author
Staff Writer

This article is written by RupeeIQ editorial staff.