Some of the SBI Mutual Fund Schemes, have given returns of as much as 25 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 Blue Chip Fund
This is the biggest mutual fund scheme from SBI with assets under management of almost Rs 16,000 crores. The fund has a superb track record and has also been rated by Crisil as number one in its category.
The fund has generated a return of 16.53 per cent in the last one year, whereas the three year returns has been 13.76 per cent. The fund has some very good stocks in its portfolio including the likes of HDFC Bank, Larsen and Toubro, ITC and HPCL.
Individuals can begin an SIP in the fund through small amounts of Rs 500. The initial investment of course is Rs 5,000.
This is good for those looking at good returns, though it can have a degree of risk, given that a majority of the money is deployed in equities. The current NAV under the growth scheme is Rs 37.75, while under the dividend plan it is Rs 21.48.
SBI Magnum Equity
This fund has assets under management of Rs 2,043 crores. The three year returns of the fund has been almost 11.22 per cent, while the 5 year returns has been even higher at 16.20 per cent. The fund has holdings in stocks like HDFC Bank, ICICI Bank, ITC and Reliance Industries.
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. The net asset value of the fund is Rs 89.51 under the growth plan and Rs 31.26 under the dividend option.
SBI Contra Fund
SBI Contrarian Fund follows a different investing principle, whereby it invests in stocks that have lost favor, though they are fundamentally sound.
This fund is again another superb performer in the last 1 year. The fund has generated a return of 19.77 per cent in the last 1 year. The fund's portfolio is very diversified.
It's top holdings are SBI, HDFC Bank, Divis Labs, Elgi Equipment, Reliance Industries and HCL Technologies.
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 116.81
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 26.28 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 more subdued return of 9.57 per cent in the last one year. The growth scheme has an NAV of Rs 79.82, while the dividend plan of Rs 34.41.
The portfolio of the fund includes stocks like Carborundum, Strides Shasun, Manpasand Beverages, Ramco Cements.
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 25.50 per cent, in the last one year. The dividend scheme has an NAV of Rs 13.29.
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 holdings in some of the less strong PSU banks in the country.
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.
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