RupeeIQ

A List of Top SBI Mutual Funds and How They Are Performing State Bank of India is the oldest and largest bank in India, and therefore enjoys tremendous respect in the banking community as well as among customers. With a view to harnessing its expertise in finance, SBI launched SBI Mutual Fund in 1987, and within the next 3 decades it had more than 6 million clients and had an AUM (assets under management) of almost Rs. 2 lakh crores, which translates to about 30 billion US dollars at exchange rates prevailing now. In these 3 decades of existence, SBI Mutual Fund has had several memorable achievements and records. In 1999, it launched sector funds, and also came out with the first contra fund in India (which goes against conventional wisdom of the market and invests in under-priced stock which would be expected to rise in the long term and provide impressive returns). SBI Mutual Fund was also the first mutual fund (backed by a bank) to start an offshore fund called Resurgent India Opportunities Fund. As recently as 2015, SBI Mutual Fund’s ETFs (Exchange Traded Funds) became the centre of attraction for investors when the EPFO (Employees Provident Fund Organization) invested about 5000 crores in them. With almost 75 distinct mutual funds, SBI Mutual Fund has the complete bouquet of products that an investor would be interested in – ETFs, FMPs (fixed maturity plans), equity funds, debt funds, hybrid funds (funds which invest in both equity and debt) and even Liquid Schemes. SBI Mutual Fund has also been widely applauded for its series of investor education initiatives. Let us take a look at some of the best performing SBI Mutual Funds : • SBI Blue Chip – This fund was launched in 2006, and it invests in stock and related instruments of large-cap companies like HDFC Bank, L&T, M&M, ITC, and Nestle having almost 25% of its investments. Large Cap companies are companies like TCS, Infosys, ITC or Tata Steel which have a very high market capitalisation. Since 2006, this fund has given returns of more than 10%. If you consider a five-year horizon from now, this fund has performed admirably with returns of almost 20%. But in 2018, its performance has dipped somewhat, and it has provided lower returns to investors. • SBI Magnum Equity – This fund also is one of the older funds managed by SBI MF, and has provided returns close to 15% over the last decade and a half. You have a choice of SBI Magnum Midcap (which would focus on companies with moderate market capitalisation) and SBI Magnum Multicap (which would invest in the stock of companies with small, medium as well as large market capitalisations). You can also choose SBI Equity ESG, which invests mostly in companies dealing with Environment, Social and Governance. That is why this fund is associated with the term ‘sustainable investment'. This fund has given returns of close to 15% since its inception in 1991. • SBI Contrarian Fund – In 1999, SBI Mutual launched the Contrarian Fund, which stayed true to its name and invested in a way that investors normally wouldn't. This fund picked up stocks that had fallen by the wayside due to some reasons, but the fund manager believed that its fundamentals were strong. This fund has provided returns of more than 19% since inception. But in the period of January 2018 to July 2018, its NAV has fallen from almost Rs. 24 to Rs. 19. • SBI Short Term Debt – This is the only fund in our list which invests in debt and money market securities, instead of equities like the others listed. It is a low-risk fund and has provided just about 6% returns since inception. https://www.rupeeiq.com/