If you are thinking of investing in mutual funds for the long term, then SBI Mutual Fund is considered a trustworthy name. SBI owns many of the oldest equity funds in India, which have not only seen market booms but also major crashes and prolonged recessions. With the help of compounding, these funds have been seen giving profits worth crores to investors on continuous investment over a long period of time.
Recently, a list of top 5 funds of SBI has been prepared on the basis of SIP performance of 20 years. These have given returns ranging from 16.06% to 17.57%. This means that if someone had done a SIP of ₹ 10,000 every month for 20 years, then this amount could have ranged from ₹ 1.51 crore to ₹ 1.83 crore today.
These mutual funds of SBI gave better returns
At the top was SBI Consumption Opportunities Fund, which gave a return of 17.57% in 20 years. This fund focuses on consumption sectors like FMCG, Auto, Paints and Telecom. Due to rising income and changing lifestyle in India, this sector has consistently performed well.
SBI Technology Opportunities Fund is at second place. This fund took advantage of the boom in the IT and digital sectors. Investment in big stocks like Infosys and Bharti Airtel strengthened it.
SBI Focused Fund is also interesting, which invests in fewer companies but with high confidence. Stake in stocks like Alphabet (Google), HDFC Bank and SBI strengthens its portfolio.
SBI Healthcare Opportunities Fund gave a return of 16.08%. The pharma and healthcare sector has shown stable performance in the long run, especially after the pandemic, the demand for this sector strengthened further. Whereas SBI Midcap Fund invests in midcap companies. The midcap sector may be more volatile, but in the long run it has given excellent returns to investors.
Big fund will be created through compounding
Such huge returns show what SIP and compounding can do together. The real game is to continue investing in both rising and falling markets. However, keep in mind that past returns are not a guarantee of the future. Therefore, do not invest just by looking at the returns. If you want to make a plan, then choose the fund keeping in mind the risk, investment period and goal. Overall, these SBI funds prove that disciplined long-term investing can turn small monthly contributions into crores.
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