Some of the SBI Mutual Fund Schemes, have given returns of as much as 38 per cent in the last 1 year. Most of them have given very comfortable returns in the last 1 year, which have beaten most asset classes, including bank deposits.
Because of their superior returns, we have chosen schemes of SBI Mutual Fund, where you can invest small amounts as low as Rs 500-Rs 1000. These include both debt and equity schemes. Take a look at some of the schemes.
SBI Magnum Equity
This fund has assets under management of Rs 2,000 crores. The three year returns of the fund has been almost 12 per cent, while the 5 year returns has been even higher at 15.69 per cent. This is a pretty decent set of returns at almost 16 per cent. The fund has holdings in stocks like HDFC Bank, ICICI Bank, ITC and State Bank of India.
The fund also has several debt instruments in its holdings. Among these include some renowned government backed bonds. You can invest in the scheme with a small SIP of Rs 500 with an initial SIP of Rs 1,000. The minimum number of cheques needed for the SIP is 12.
SBI Banking & Financial Services Fund - Regular
SBI Banking and Financial services, has given a return of 38 per cent in the last one year. This is superb set of returns by any stretch of imagination. The growth plan has an NAV of Rs 13.64.
You can invest through small sums of Rs 5,00 in the scheme. The SBI Banking Fund has heavily invested in the banking sector with HDFC Bank, ICICI Bank, Axis Bank, Kotak Mahindra Bank and IndusInd among its top holdings.
Buy the scheme, if you have a long term perspective in mind. However, do keep in mind that banking stocks have rallied a bit and hence, the SIP route would help you to hedge the risk, in case banking stocks decline.
SBI Contra Fund
This fund is again another superb performer in the last 1 year. The fund has generated a return of 25 per cent in the last 1 year. The fund's portfolio is very diversified.
It's top holding are Cognizant, State Bank of India, HDFC Bank, HCL Tech and Divis Labs.
You can start a SIP by investing a minimum of Rs 500 every month. However, the initial amount of investment that is needed is Rs 5,000. The NAV under the growth plan is Rs 28.68, while the dividend plan has an NAV of Rs 9.37. The portfolio is well diversified, though we must admit that this is not the best SIP from the SBI Mutual Fund stable.
SBI Magnum Midcap Fund
Over the longer term this has been a fantastic performing SIP from SBI. The fund has generated a 5-year return of 30 per cent, which is excellent.
Being in the midcap space, it is best for investors who are willing to take a risk. The fund has generated a return of 23 per cent in the last one year. The growth scheme has an NAV of Rs 77.29, while the dividend plan of Rs 33.32
The portfolio of the fund includes stocks like Cholamandalam, Strides Shasun, Manpasand Beverages, Ramco Cements. Any scheme that can generate a performance of 20 per cent in one year, is certainly good. It is important to remember that midcap stocks are risky bets and hence the returns can be volatile. So, you may need to see your own requirements and needs before investing.
SBI PSU Fund
This fund is mandated to invest in government owned companies.
If you believe that public sector undertaking can do well in the future, go for this scheme. You can invest in the scheme through small amounts of Rs 500.
The SBI PSU Fund has given a returns of 15 per cent, in the last one year. The dividend scheme has an NAV of Rs 12.83.
The fund has holdings in State Bank of India, Indian Oil Corporation, ONGC, Mahanagar Gas, Punjab National Bank along with a host of government companies. The fund has a small asset size of Rs 222 crores only. A good thing about the fund is that it has comparatively lesser holding in some of the less strong PSU banks in the country.
SBI Nifty Index Fund
As the name suggests, the fund invests in the index stocks.
The fund has generated a return of almost 21 per cent in the last one year, thanks to index stocks jumping in the last few years. The net asset value under the scheme is Rs 41.34 under the dividend scheme, while the growth scheme it is Rs 80.11. SBI Nifty Index Fund has large holdings in HDFC Bank, HDFC, ITC Reliance Industries and Infosys.
If you believe that the index will rally, this is a good fund to place your bet on. You can invest in the scheme with a small amount of Rs 500 each month, through SIPs.
SBI Short Term Debt Fund
SBI Short Term Debt Fund is for those who like debt schemes. This fund, like the others mentioned above, do not invest in equity, but, only in debt.
Most of its holding is in government securities. The fund has generated a return of 8.65 in the last one year. You can invest in the scheme with an initial investment of Rs 5,000 and Rs 1,000 thereafter through SIP.
Remember, this being a debt fund you cannot get superlative returns and most of the returns would be linked to how interest rates in the economy move. If interest rates drop you would get lower yields and when interest rates climb your yields could be higher.
SBI Treasury Fund
This fund is again a debt fund. If you feel, that there is a risk in equities invest in this fund. Most of the fund is in debt. The fund has generated a return of 7.56 per cent in the last one year. Bulk of the investment is in treasury bills, which is why this investment is very safe. The fund does have some exposure to some private debentures like LIC Housing and IndiaBulls Housing. It is important to note that as interest rates in the economy fall, the returns from these investments are likely to fall. This is because a drop in the overall interest rates leads to a drop in treasury yields, which ultimately impact returns from the SBI Treasury Fund.
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