These 5 SBI Mutual Fund Schemes Have Given The Best Returns In 3-Years

It's always a hard bet when it comes to choosing a mutual fund scheme. Some options when choosing a mutual fund scheme is going by past track record or going by noted agencies ratings like Crisil, Morningstar or Value Research.

A look at the 5-best mutual fund schemes of SBI Mutual Fund

Name of scheme	3-year returns	Type
SBI Contra Fund	34.90%	Investments mostly in largecaps
SBI Technology Opportunities	30.36%	Mostly in tech stocks
SBI Small Cap Fund	28.73%	Invests mostly in small cap
SBI Magnum Midcap	28.43%	Invests mostly in midcaps
SBI Infra Fund	24.48%	Invests mostly in infra stocks

Hard to predict returns from mutual fund schemes

The above mentioned are annualized returns from the fund and not absolute returns. In most cases the returns are fantastic, as three years ago markets had plunged at this time on account of the covid scare. So, on a lower base the returns are high.

It's always hard to predict the mutual fund returns over the short to medium as well as long-term. It is hence advised for investors to not go by the past performance only. Also, one must note that the above mentioned schemes are not a recommendation from our end, but, is just merely information. Apart from this it is also important for investors to remember that small and midcaps can be risky bets and hence one needs to also be cautious.

Investors also must try to note before investing lumpsum amounts that markets are not cheap at the current levels. In fact, the Nifty at 20 times one-year forward is fairy valued. Hence, any lumpsum investments could be a little risky and hence it is best to opt for SIPs.

The last 3-years have been fantastic for the markets and also for mutual fund schemes. Whether the same trend would continue in the context of rising interest rates one cannot be sure. However, what is certain is that 30% annuaized returns in the next 3-years looks a little far-fetched. If you are unable to discern where to invest right now, you should seek professional advise.

We expect mutual funds to largely show a steady performance in the next few years and perhaps beating returns from fixed deposits over the next couple of years could be harder.