How diverse is SBI Mutual Fund?


SBI Mutual Fund is the asset management company associated with State Bank of India. SBI Mutual Fund has a variety of mutual funds. How diverse are SBI Mutual Fund’s schemes? The schemes that SBI mutual funds offer include large cap, small cap, mid cap and multi cap. They are sector specific as well as hybrid. SBI are especially known for leveraging Indian equities to its maximum.

What sets SBI Mutual Fund Apart?

Choice: when it comes to SBI Mutual Funds, one might be spoilt for choice. There are mutual funds custom made to suit the goals and risk appetites of all kinds of investors. This makes sure that you do not have to settle for a mutual fund that is not really suitable for you.

Quality: all products offered by SBI Mutual Fund is thoroughly evaluated on the basis of investment goals and risk tolerance. All their funds aim at maximizing returns for the investor.

Rating: most of their mutual funds are rated three or above by CRISIL.

Availability: SBI mutual funds are easily available in all forms, as a lump sum, SIP as well as domestic and offshore funds.

Management: SBI mutual fund have consistently performed well. Its owes the success to the expert management team who have commendable experience in this area. The managers of SBI Mutual Funds have decades of experience in managing funds. An experienced fund manager knows how to keep poise in the face of market turbulence and make wise decisions at times of fluctuation.

Which are the best SBI Mutual Funds?

SBI Magnum Multicap Fund

SBI Magnum Mutlicap direct growth is an open ended equity mutual fund launched in 2005. The level of risk associated is moderately high. It has a diversified portfolio of stocks of different market capitalization. 65% of this fund is invested in large cap equities whereas the remaining 35% is invested in debt and money market instruments. This SBI mutual fund aims to provide long term capital gain for its investors through equities.
SBI Small Cap Fund
As the name suggests, SBI small cap fund is an open ended equity scheme that predominantly invests in small cap companies. The investment objective is to provide higher returns to investors by investing in equity and equity related instruments of small cap companies. 65% of the fund is invested in small cap companies and the rest in other equities and debt securities. It follows a bottom-up strategy in stock selection and the risk associated is moderately high. However, a well-diversified portfolio containing stocks from different sectors mitigates risk to a certain extent. Small cap stocks also usually bring the most returns.

SBI Bluechip Fund

The word bluechip is synonymous with large cap. Large cap companies in India are the top 100 companies in terms of market capitalization. A large cap fund is required to invest 80% of its total assets in large cap companies. The remaining 20% can be invested in different asset classes according to the fund manager’s discretion.

SBI Bluechip Fund is an open ended equity scheme which was launched in 2006. The risk associated with it is moderately high, which is more or less mitigated by investing in diverse stocks from different sectors. This is ideal for investors looking for long term wealth creation.

As you may have learned by now, there is an abundance of mutual funds out there. Once you have chosen a particular AMC, the decision still remains which fund to invest in. The factors to look at are the investment objectives of the scheme, risk profile which should be compared with your own. And remember to look at the time horizon and expense ratio too!

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