Top SBI Mutual Funds for SIP Based on 5Y CAGR (2025)
Did you know that SBI Mutual Fund is one of India’s largest and oldest mutual fund houses? It was established in 1987 as a joint venture between State Bank of India (SBI) and Amundi Asset Management. This AMFI-registered mutual fund distributor offers a wide range of mutual fund schemes across equity, debt, hybrid, and other categories.
Among the many investment options available, SBI Mutual Fund’s Systematic Investment Plans (SIPs) have gained popularity for their ability to help investors achieve their long-term financial goals. With consistent performance, investing in SBI Mutual Fund’s SIP plans have proved to be a sound investment decision for many investors.
In this blog, we will delve into the best SBI mutual fund for SIP in the long term and learn its features, benefits, and how you can invest in them.
Best SBI Mutual Fund for SIP Long Term in India Based on 5Y CAGR
| Name | AUM | AMC | CAGR 3Y | Exit Load | NAV | Expense Ratio | Alpha | Absolute Returns - 1Y | Volatility |
|---|---|---|---|---|---|---|---|---|---|
| SBI Equity Hybrid Fund | 77256 | SBI Funds Management Limited | 15 | 1 | 335 | 1 | 2 | 7 | 9 |
| SBI Liquid Fund | 63824 | SBI Funds Management Limited | 7 | 0 | 4186 | 0 | 0 | 7 | 0 |
| SBI Large Cap Fund | 52421 | SBI Funds Management Limited | 16 | 0 | 102 | 1 | 5 | 0 | 12 |
| SBI Contra Fund | 46654 | SBI Funds Management Limited | 22 | 0 | 416 | 1 | 5 | -4 | 11 |
| SBI Arbitrage Opportunities Fund | 41552 | SBI Funds Management Limited | 8 | 0 | 36 | 0 | 0 | 7 | 1 |
| SBI Focused Fund | 37764 | SBI Funds Management Limited | 17 | 0 | 404 | 1 | 9 | 7 | 12 |
| SBI Balanced Advantage Fund | 36673 | SBI Funds Management Limited | 15 | 1 | 16 | 1 | 0 | 4 | 6 |
| SBI Savings Fund | 36566 | SBI Funds Management Limited | 8 | 0 | 45 | 0 | 0 | 8 | 0 |
| SBI Small Cap Fund | 35245 | SBI Funds Management Limited | 16 | 1 | 196 | 1 | 7 | -7 | 15 |
| SBI Large & Midcap Fund | 33248 | SBI Funds Management Limited | 19 | 0 | 677 | 1 | 7 | 2 | 13 |
Disclaimer: Please note that the above table is for educational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing. The data is derived from Tickertape Stock Screener and is subject to real-time updates.
Note: The list of top-performing SBI SIP investment plans is derived from Tickertape Mutual Fund Screener and the data is derived from 6th February 2025. The parameters used to curate the list are as follows:
- Plan > Growth
- Expense Ratio
- CAGR 3Y
- CAGR 5Y: Sort from high to low
- Minimum SIP Investment
- Exit Load
Pro Tip: You can use Tickertape’s Stock Screener to research and evaluate stocks with over 200+ filters and parameters.se Tickertape’s Stock Screener to research and evaluate stocks with over 200+ filters and parameters.
Overview of the Top 10 SBI Mutual Fund for SIP Long Term
SBI Equity Hybrid Fund
This balanced hybrid fund invests in both equities and debt instruments. It provides long-term capital appreciation and regular income through diversification for moderate-risk investors.
SBI Liquid Fund
This low-risk debt fund invests mainly in short-term money market instruments like treasury bills and commercial papers. It offers high liquidity and stable SBI mutual fund returns, making it suitable for conservative investors seeking short-term investments.
SBI Large Cap Fund
This equity fund invests in large-cap stocks of well-established companies with strong track records. It generates long-term capital appreciation with comparatively lower risk than mid and small-cap stocks.
SBI Contra Fund
This contrarian equity fund invests in undervalued market stocks with strong growth potential. It aims for long-term capital appreciation by finding value opportunities in high-quality companies.
SBI Arbitrage Opportunities Fund
This hybrid fund earns from price differences between cash and derivative markets through equity arbitrage. It provides SBI mutual fund returns with reduced risk by focusing on short-term price movements, offering low volatility.
SBI Focused Fund
This equity fund invests in a concentrated SBI mutual fund portfolio of high-conviction stocks across sectors. It focuses on quality companies and aims for high growth by taking a concentrated high-risk approach to achieve long-term capital gains.
SBI Balanced Advantage Fund
This dynamic hybrid fund adjusts its equity and debt allocation based on market conditions. It balances capital appreciation and stability with the flexibility to modify equity exposure according to market cycles.
SBI Savings Fund
This liquid fund offers safety and liquidity for short-term investments. It invests mainly in short-term debt and money market instruments, providing conservative investors steady income, minimal risk, and easy fund access.
SBI Small Cap Fund
This equity fund invests in small-cap stocks that have higher growth potential than large companies. It provides strong capital appreciation opportunities but carries higher risk due to small-cap market volatility.
SBI Large & Midcap Fund
This hybrid equity fund invests in large-cap and mid-cap stocks. It combines stability from large firms with the growth potential of mid-sized companies, aiming for capital appreciation at moderate risk.
How to Invest in SIP in SBI Mutual Funds?
You can easily start to invest in SIP in SBI mutual funds by following these steps:
- To invest in the best SBI mutual funds SIP, you can visit a mutual fund investment platform such as smallcase.
- The next step is to research and identify the mutual funds SIP that match your financial goals. Tools like the Tickertape Mutual Fund Screener can help you filter and compare funds based on parameters such as returns, expense ratio, and fund size.
- Once you shortlist the funds, visit smallcase, log in, and search for the fund by name. You can then choose the investment mode and complete the process.
What is SBI Mutual Fund for SIP Long Term?
SBI Mutual Fund works under the State Bank of India, which is the largest public sector bank in the country. It is a major fund house that offers different types of mutual fund investment services, including equity, hybrid, and debt funds.
A popular way to invest in SBI mutual fund schemes is through a systematic investment plan known as SIP. This method allows investors of all income levels to grow their savings over time. By investing small amounts regularly, SIP helps investors build a strong financial corpus and achieve long-term financial growth.
How Do the Best SBI Mutual Fund for SIP Long Term Work?
Systematic Investment Plan (SIP) is a facility offered to investors to invest in mutual funds in a disciplined manner. This facility allows the investors to invest a fixed amount in the selected mutual fund schemes at a predetermined date. With SBI SIP schemes, investors can authorise automatic debits from their chosen monthly, weekly, or daily investment amount from the registered bank account on a specific date.
This invested amount is then allocated to a selected SBI Mutual Fund scheme. While your individual investment remains constant, keep in mind that the scheme’s Net Asset Value (NAV) fluctuates daily, affecting the number of units acquired in each SIP instalment.
For example, if you invest ₹1000 monthly and the initial NAV is ₹100, you buy 10 units. If the NAV rises to ₹60 for the next instalment, you can only purchase 6.67 units. Conversely, if the NAV drops to ₹40, you could acquire 15 units. This variation in unit prices during SIP investments is termed “rupee cost averaging,” which proves advantageous in the long run.
Benefits of Investing in the Best SIP Plans from SBI Mutual Fund
Here is a list of benefits offered by the best SIP of SBI mutual fund:
- Disciplined Investing: SBI Mutual Fund’s Systematic Investment Plans (SIPs) offer a structured way to invest, with a fixed amount automatically debited from your account at regular intervals and invested in your selected mutual fund scheme. This approach helps balance market risk by investing a fixed sum regardless of market conditions and allows for wealth creation through SIPs.
- Rupee Cost Averaging: Rupee Cost Averaging is a key benefit of investing in SBI SIP plans. By investing a fixed amount at regular intervals, RCA allows you to automatically buy more units when prices are low and fewer units when prices are high, ultimately lowering your average cost per unit over time.
- Flexible Investment Tenure: SIPs offer flexible investment tenures by allowing investors to choose how often and how much they want to invest. For instance, you can start investing in the SBI Nifty Index Fund at just Rs. 500. However, you can also increase the amount using the SIP top-up option instead of starting a new SIP plan of the best mutual fund of SBI.
- Power of Compounding: When it comes to investing in mutual funds through SBI SIPs, the earlier you start, the better. Even small amounts invested via SIP in SBI bank’s mutual fund schemes can significantly impact the returns due to the power of compounding. Therefore, you can calculate your SBI mutual fund returns using smallcase’s SBI SIP Calculator, which uses a compounding system to estimate returns over the selected period.
How to Choose the Best SBI Mutual Fund for SIP Long Term for Investing?
If you are wondering how to redeem SBI mutual funds, the key is to choose the right ones. Selecting the optimal SBI Mutual Fund for SIP long-term investing involves a strategic evaluation of these key parameters:
- Define Your Investment Goals: Clearly articulate your financial aspirations and objectives before delving into SBI Mutual Fund options.
- Align with Long-Term Vision: Ensure your chosen fund aligns with a long-term investment strategy, complementing the inherent nature of systematic investment plans.
- Explore Diverse SBI Mutual Fund Options: Investigate a range of SBI Mutual Funds, considering performance history, managerial expertise, and overall SBI mutual fund investment philosophy.
- Mindful Evaluation of Costs: Assess the fund’s cost structure, keeping an eye on expense ratios and associated fees to optimize SBI mutual funds returns over time.
- Seek Consistency Across Market Conditions: Evaluate the fund’s track record for consistency in generating returns, considering various market scenarios.
- Gain Insights into Assets and Sectors: Understand the underlying assets and sectors the fund invests in, ensuring they align seamlessly with your overall investment approach.
- Ensure Balanced Portfolio Composition: Verify that the SBI mutual fund portfolio composition offers a balanced approach that matches your risk preferences.
Risks of Investing in SBI Mutual Fund for SIP Plans
- Liquidity Risk: Liquidity refers to how easily an investment can be converted into cash. The liquidity of a mutual fund scheme depends on factors like trading volumes, transfer procedures, and settlement periods. If these factors limit liquidity, it can pose a risk for even high return mutual funds.
- Interest Rate Risk: It is a significant factor in bond prices. When interest rates rise, bond prices fall, and vice versa. This means that if interest rates increase, the value of your bonds decreases. However, a well-diversified portfolio including the best performing funds can help reduce this risk by spreading your investments across different types of bonds and assets.
- Market Volatility: When investing in the top mutual funds, it’s important to understand that market volatility can occur due to various external factors such as liquidity flows, changes in the business environment, and economic policy shifts. However, SBI Mutual Fund schemes are designed to manage this volatility risk through portfolio diversification.
Taxation on SBI Mutual Funds for SIP Long-Term as per the Union Budget 2024-25
Understanding the tax implications of investing in SBI Mutual Funds is crucial for maximising returns and planning your investment strategy. Below is a summary of the tax treatment for different types of SBI mutual funds.
| Fund Type | Short-Term Capital Gains Tax (STCG) | Long-Term Capital Gains Tax (LTCG) |
| Equity Funds (e.g., SBI Small Cap Fund) | 15% (if held < 1 year) | 10% (above ₹1 lakh per annum, no indexation) |
| Debt Funds | Taxed as per income slab | 20% with indexation or 10% without indexation |
| Hybrid Funds | 15% (on equity portion) | 10% (on equity portion, based on holding mix) |
| Tax-Saving Funds (SBI elss mutual fund) | 15% (if held < 3 years) | 10% (above ₹1 lakh per annum, no indexation) |
Factors to Consider Before Investing in the Best SBI Mutual Funds for SIP Long-Term
Consider these essential factors before committing to long-term SIP investments in the best SBI mutual funds:
- Identify Investment Goals: Before starting a SIP, start by identifying your investment objective. A financial goal could be anything, such as a wedding, a child’s education, building a retirement corpus, or having an emergency fund for urgent requirements.
- Know Your Risk Appetite: Next, you must determine your risk tolerance before investing. Mutual fund schemes can be categorised as low, medium, or high risk, depending on the type of securities and asset classes they invest in. By aligning your SBI bank mutual fund schemes with your risk profile, you can better manage your expectations and be prepared to bear market volatility.
- Time Horizon: Financial goals and investment tenure mostly go hand-in-hand. Choosing SBI MF schemes, including tax-saving mutual funds, that align with your short-term, medium-term, or long-term financial goals can help you manage risk, set realistic expectations, and maximise the potential of your investments to achieve your objectives.
- Expense Ratio: When investing in mutual funds, it’s important to consider the expense ratio – the annual fee charged by the fund house to manage your investments. While mutual funds provide the expertise of professional fund managers who research, analyse, and make timely investments based on market conditions, investors generally prefer schemes with a lower expense ratio. Therefore, it is advisable to research mutual fund schemes and compare their expense ratios before investing.
- Exit Load: Aside from the expense ratio, it’s also crucial to consider any exit loads associated with SBI Mutual Fund schemes. Exit loads are fees charged if you withdraw your investment before a certain time period. Funds with no exit or lower exit loads are generally preferable, as they provide greater flexibility and allow you to access your money without incurring additional costs.
To Wrap It Up…
The best SBI mutual fund for SIP in the long term can be an efficient and disciplined approach to investing. You can choose the best SIP schemes from SBI mutual fund investments based on your goals, risk profile, investment horizon, and SBI fund performance. Therefore, with flexibility and expert management, you can take this informed approach to build a resilient portfolio tailored to your needs. However, consult a financial advisor to get a better understanding of your investing approach.
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Frequently Asked Questions on Best SBI Mutual Fund for SIP Long Term
Based on the 5Y CAGR, here is a list of the top 5 SBI SIP schemes that you can consider in 2025:
(a) SBI Contra Fund
(b) SBI Healthcare Opp Fund
(c) SBI Magnum Midcap Fund
(d) SBI PSU Fund
(e) SBI Infrastructure Fund
Note: This information is intended for educational purposes and should not be construed as a recommendation or advice.
The best SBI mutual funds for SIP invest in a diversified portfolio of stocks, bonds, and other securities to generate long-term risk-adjusted returns while managing risk through asset allocation and professional fund management.
Through the SIP Pause Facility offered by SBI Mutual Funds, you can pause your SIPs for one year. This facility is available to SIPs done daily, weekly, monthly, semi-annually, and annually. Please note that you cannot cancel the SIP pause once registered.
If you miss paying an instalment for your SBI Mutual Fund SIP, don’t worry – there’s no penalty. However, if you miss 3 instalments in a row, your SIP will be automatically cancelled by the fund house.
Cancelling an SBI Mutual Fund SIP before it matures means you will stop making any further investments. However, the units you purchased through your existing SIPs will remain unaffected in your investment portfolio.
