SBI Mutual Fund, one of India’s largest fund houses, today operates over 125 schemes across various categories, including equity, debt and hybrid. For mutual fund investors, SIP (Systematic Investment Plan) is considered an excellent way to invest for the long term and reap the benefits of cost averaging. Over the past decade, many SIP schemes have delivered impressive returns to investors.
From these top-performing funds, we have selected five schemes (direct plans) from SBI Mutual Fund, which have delivered annual compounded growth (CAGR) ranging from 19% to 20.58% on SIP investments over the past 10 years. Lump sum investors have also seen returns ranging from 12% to 19% CAGR.
Why SIP is a better investment method
The biggest advantage of SIP investing is that it frees investors from the worry of market timing. Investing a fixed amount every month provides the benefits of rupee-cost averaging, allowing investors to maintain a balanced portfolio even during fluctuations. Over the long term, this approach instils discipline and consistency in investing — key to wealth creation.
Top 5 SBI funds with the highest SIP returns in 10 years
SBI Technology Opportunities Fund
This fund, which capitalises on the rapidly growing opportunities in the technology sector, has delivered a 20.59% CAGR return on SIPs over the past 10 years. This means that if someone had made a monthly SIP of Rs 10,000, the amount would have grown to Rs 35.5 lakh in 10 years.
On a lump sum investment, it has delivered a CAGR of 17.80%. An investment of Rs 1 lakh would have become Rs 5.1 lakh today. This fund has been a strong option for long-term investors with confidence in the tech sector.
This fund adopts a contrarian approach—investing in stocks that are currently undervalued in the market but have strong future growth potential. Over the past 10 years, it has delivered a 20.48% CAGR return on SIPs. A Rs 10,000 SIP would have yielded an investor a corpus of Rs 35 lakh.
The lump sum return was 16.91% CAGR, making Rs 1 lakh investment worth Rs 48 lakh today.
This fund, which invests in small but fast-growing companies, has delivered a 19.93% CAGR on SIPs over the past 10 years. A Rs 10,000 monthly SIP resulted in a corpus of Rs 35 lakh.
It has delivered a CAGR of 19.38% on lump sum investments, turning Rs 1 lakh into Rs 5.88 lakh today. Despite the higher risk in small-cap companies, this fund has generated strong returns for investors over the long term.
This fund invests in public sector companies. Over the past 10 years, it has delivered a CAGR of 19.63% on SIP investments, which translates to a portfolio of Rs 34 lakh from a Rs 10,000 monthly SIP.
On lump sum investments, it has delivered a CAGR of 14.74%, which translates to a value of Rs 3.96 lakh today from an investment of Rs 1 lakh after 10 years.
SBI Healthcare Opportunities Fund
This fund, which invests in the healthcare and pharmaceutical sectors, has delivered a CAGR of 19.14% on SIP investments over the past 10 years. A Rs 10,000 monthly SIP resulted in a fund of Rs 32.64 lakh.
Lump sum investment achieved a CAGR of 12.25%, turning Rs 1 lakh into Rs 3.18 lakh today.
Caution for investors
Past returns do not always guarantee future performance. Mutual fund investments are subject to market risks. Therefore, investors should not base their decisions solely on past returns. They should start a SIP based on their financial goals, risk appetite and investment horizon.
Disclaimer: The above content is for informational purposes only. Mutual Fund investments are subject to market risks. Please consult your financial advisor before investing.