New Delhi: If you are thinking of investing in mutual funds for a longer duration, then SBI Mutual Fund is considered a trustworthy name. Many of India’s oldest equity funds belong to SBI, which has not only witnessed market growth, but also suffered major crashes and prolonged recessions. After investing continuously for a long time, these funds have been seen benefiting investors up to crores with the help of compounding.
Recently, based on 20 years of SIP performance, a list of top 5 funds of SBI has been prepared. Returns range from 16.06% to 17.57%. This means that if someone had opted for a SIP of Rs 10,000 per month for 20 years, this amount could have ranged from Rs 1.51 crore to Rs 1.83 crore today.
SBI mutual fund returns
At the top was SBI Consumption Opportunities Fundwhich has given a return of 17.57% in 20 years. This fund focuses on consumption sectors like FMCG, Auto, Paints and Telecom. Due to the increasing income and changing lifestyle in India, this sector has consistently performed well.
SBI Technology Opportunities Fund is at number two. This fund took advantage of the boom in the IT and digital sector. Investing in giant stocks like Infosys and Bharti Airtel made it stronger.
SBI Focused Fund is also interesting, which invests in low companies but with high trust. Stake in stocks like Alphabet (Google), HDFC Bank and SBI strengthens its portfolio.
SBI Healthcare Opportunities Fund has given a return of 16.08%. The pharma and healthcare sector has performed steadily in the long run, especially after the pandemic, the demand for this sector strengthened. Whereas SBI Midcap Fund invests in mid-cap companies. The mid-cap sector may be very volatile, but it has given great returns to investors in the long term.
Compounding
Such a high return indicates what SIP and compounding can do together. Continuing to invest in both the fall and rise of the market is the real game. However, keep in mind that past returns are not a guarantee of future. So don’t invest just by looking at the returns. If you want to make a plan, then choose a fund keeping in mind the risk, investment period and goals. Overall, these funds of SBI prove that long-term disciplined investment can convert small monthly contributions into crores.
(Disclaimer: This article is only meant to provide information. News9 does not recommend buying or selling shares or subscriptions of any IPO, Mutual Funds, gold, silver and crypto assets.)
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