Best SBI Mutual Funds in India 2025: Top SBI MF Schemes

Did you know the State Bank of India Mutual Fund (SBIMF) is India’s largest bank-sponsored mutual fund? It has AUM (Assets Under Management) of ₹9.14 lakh cr. It was established in 1987 as a joint venture between the State Bank of India and Amundi Asset Management, a leading French asset management company.

SBIMF offers a wide range of mutual fund schemes across equity, debt, hybrid, and other categories, with a total of around 147 schemes. SBI Funds Management Ltd has consistently delivered high-performing mutual funds, helping investors build long-term wealth. In this article, let’s explore the best SBI bank mutual funds, how they work, who should invest, the benefits, the risks, and how to invest in SBI mutual funds.

List of Best SBI Mutual Funds in India (2025) 

Here are some of the top 10 SBI mutual funds in 2025:

Name	Sub Category	AUM (Cr.)	Expense Ratio	CAGR 5Y (%)	CAGR 10Y (%)
SBI Magnum Midcap Fund	Mid Cap Fund	21,177.20	0.81	24.35	14.90
SBI Contra Fund	Contra Fund	41,634.25	0.6	29.41	14.77
SBI Infrastructure Fund	Sectoral Fund - Infrastructure	4,867.23	0.83	24.15	14.23
SBI Large & Midcap Fund	Large & Mid Cap Fund	28,677.29	0.73	20.01	13.70
SBI Healthcare Opp Fund	Sectoral Fund - Pharma & Health Care	3,521.93	0.89	26.02	12.99
SBI Flexicap Fund	Flexi Cap Fund	21,592.65	0.84	15.54	12.41
SBI BlueChip Fund	Large Cap Fund	49,128.07	0.82	16.73	11.83
SBI Gold	FoFs - Gold	2,919.72	0.1	13.87	11.56
SBI PSU Fund	Thematic Fund	4,542.83	0.78	24.61	11.45
SBI Conservative Hybrid Fund	Conservative Hybrid Fund	9,760.98	1.05	10.93	9.33

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 funds mentioned are taken from Tickertape Mutual Funds Screener on 5th March 2025. They are sorted based on their 10-yr CAGR (highest to lowest) and belong to the Growth Plan.

🚀 Pro Tip: You can use Tickertape’s Mutual Fund Screener to research and evaluate funds with over 50+ pre-loaded filters and parameters.

Overview of the Top SBI Mutual Funds

SBI Magnum Midcap Fund

This fund focuses on mid-cap companies, offering investors long-term capital growth by investing in a well-diversified portfolio of mid-sized firms. It aims to capitalise on the growth potential of emerging businesses while maintaining liquidity.

SBI Contra Fund

With a contrarian investment approach, this fund identifies opportunities in stocks that are currently out of favour but have long-term growth potential. It also has a diversified allocation across five investment themes, including IT, Pharmaceuticals, FMCG, Contrarian, and Emerging Businesses.

SBI Infrastructure Fund

This fund targets companies directly or indirectly contributing to India’s infrastructure development. By actively managing investments in equity stocks and selectively allocating funds to debt and money market instruments, it aims for long-term capital appreciation.

SBI Large & Midcap Fund

Balancing exposure between large and mid-cap stocks, this fund invests in high-growth companies to provide long-term capital appreciation. It combines the stability of large-cap stocks with the growth potential of mid-caps.

SBI Healthcare Opportunities Fund

This sectoral fund focuses on healthcare and pharmaceutical companies, offering investors the potential for long-term capital appreciation. It invests in a diversified SBI mutual fund portfolio of equity and equity-related securities within the healthcare industry.

How to Invest in SBI Mutual Funds?

You can easily invest in SBI mutual funds by following these steps:

• To invest in SBI mutual funds, you can visit an equity investment platform such as smallcase or Tickertape.
• The next step would be to research and identify the top 10 mutual fund schemes among the best SBI mutual funds which aligns with your investment thesis. You can easily select and learn more about these SBI mutual fund plans with the help of a financial tool like the Tickertape Mutual Fund Screener. With 50+ pre-loaded filters, it helps you to create a comprehensive list by giving insights about the fund’s performance. Try it now!
• Once you have selected the funds based on different metrics and parameters, go to smallcase.com or the smallcase app, and login via your phone number. Click on ‘Discover‘ and enter the name of the specific mutual fund name in the search bar and hit enter. To start an SIP in mutual funds, you can click on ‘invest now’ and select whether you want to invest a lump sum amount or start an SIP and start investing!

Here are a few popular smallcases among new investors:

What are SBI Mutual Funds?

SBI Mutual Fund Trustee Company Pvt. Ltd. oversees the operations of SBI Bank Mutual Fund, which has been a significant player in India’s mutual fund landscape since its inception. The fund was established on 29th June 1987, and officially incorporated on February 7, 1992, making it India’s second mutual fund after the Unit Trust of India, which was founded in 1963. The fund operates under the sponsorship of the State Bank of India (SBI), one of the country’s largest and most trusted banking institutions. 

In a strategic move in July 2004, SBI sold a 37% stake in SBI Bank Mutual Fund to Amundi, a prominent French asset management company. Crédit Agricole and Société Générale jointly created Amundi. People around the world recognise Amundi for its expertise in asset management. This partnership has been instrumental in enhancing the fund’s global reach and bringing international best practices to its operations, helping it become one of the best performing mutual funds in the market.

Types of SBI Mutual Funds

1. Equity Funds: These SBI equity funds invest primarily in stocks and aim for long-term capital appreciation. Examples include the SBI Bluechip Fund and the SBI Magnum Midcap Fund. 
2. Debt Funds: These funds invest in fixed-income securities such as bonds and treasury bills. They are suitable for investors looking for stable returns with lower risk.
3. Hybrid Funds: These funds invest in a mix of equity and debt instruments, providing a balance between risk and return. The SBI Equity Hybrid Fund is a notable example. Many recommend it as one of the best SIP investment options in SBI Mutual Funds.
4. Other Categories: SBI Mutual Fund also offers thematic funds, index funds, and funds of funds to cater to specific investment strategies and preferences. For instance, those looking for SIP mutual fund options for long term investment often explore hybrid and equity options.

Documents Required to Invest in SBI Mutual Funds

The KYC process requires specific documents to verify a client’s identity and address. Acceptable officially valid documents (OVD) include:

Proof of Identity

• PAN Card (mandatory)
• Voter ID Card
• Driving Licence
• Passport
• Aadhaar Card
• Any valid identity card issued by the Central or State Government

Proof of Address

• Voter ID Card
• Driving Licence
• Passport
• Ration Card
• Aadhaar Card
• Bank account statement or passbook
• Utility bills (e.g., electricity or gas bills)

How Do SBI Mutual Funds Work?

1. Pooling of Funds: Investors contribute to a specific mutual fund scheme. These contributions are consolidated into a more significant investment corpus.
2. Portfolio Management: Skilled fund managers at SBI Mutual Funds allocate the pooled corpus into a mix of financial assets aligned with the scheme’s investment objectives. 
3. Diversification: SBI Mutual Funds for long-term and short-term invest in a broad array of securities to balance risk and reward, ensuring no single asset disproportionately affects the portfolio.
4. NAV Monitoring: The Net Asset Value (NAV) of each scheme is calculated daily, reflecting the per-unit value of the fund’s holdings after deducting liabilities.
5. Returns Distribution: Investors earn through NAV appreciation or dividends, depending on their chosen plan—SBI mutual fund growth or dividend payout.
6. Regulation and Transparency: Governed by SEBI, SBI Mutual Funds maintain strict adherence to guidelines, ensuring clarity through regular portfolio disclosures.

Who Can Consider SBI Mutual Funds?

• Conservative Investors: Those looking to start SIP investment with low wisk may explore SBI debt funds or hybrid funds.
• Long-Term Investors: Individuals with a long-term horizon might consider SBI fund options which provide professional fund management and market exposure.

It’s crucial for potential investors to evaluate their financial goals, risk tolerance, and investment horizon before considering SBI Bank Mutual Funds.

Risks Involved While Investing in SBI Mutual Funds

• Market Volatility: SBI Mutual Funds are subject to market fluctuations. Changes in economic conditions, global events, or investor sentiment can impact returns, even for the best mutual fund in SBI. For example, geopolitical events can reduce fund performance.
• Past Performance Limitations: Historical performance is not always indicative of future results. Relying solely on past data may lead to misguided decisions while identifying top mutual funds
• Economic and Political Factors: Shifts in interest rates, inflation, or government policies directly affect fund performance.
• Liquidity Risk: Some funds may face liquidity challenges, especially during market stress. This can delay redemption requests or increase costs even for the best performing mutual funds.

Benefits of Investing in SBI Mutual Funds

• Proven Track Record: Top mutual funds, including the SBI MF best fund, have demonstrated consistent SBI mutual fund performance over the years. This proven history assures investors of the fund manager’s stability and reliability.
• Diverse Fund Options: With good mutual funds options ranging across equity, debt, hybrid, and tax-saving funds, SBI Mutual Funds plans to cater to various financial goals and risk appetites. 
• Professional Fund Management: Every SBI Bank Mutual Fund manager is a seasoned professional who leverages rigorous research and strategic insights to optimise SBI mutual fund returns and manage risks effectively.
• Cost-Efficient Solutions: With competitive expense ratios, SBI Mutual Funds offer cost-effective investment options, enhancing net returns. 

How to Choose the Best SBI Funds for 2025?

• Define Your Investment Goals: Determine if you aim for capital appreciation, regular income, or both. You can check out the SBI mutual fund calculator to find out your potential returns against different expected rates of return.
• Assess Your Risk Tolerance: Understand your capacity for risk. Equity funds offer high growth potential but come with volatility. For stability, opt for debt funds or hybrid funds that balance equity and fixed-income exposure.
• Analyse Historical Performance: Review the historical performance of SBI MF best funds to gauge consistency. However, note that past performance does not guarantee future results. 
• Evaluate Expense Ratios and Fees: Lower expense ratios can significantly impact returns. Compare the costs of similar funds to identify the most cost-effective options, especially when choosing the best SBI bank mutual fund for lump sum investments.
• Consult a Financial Advisor: A financial advisor can help identify the best investment plan in SBI suited to your needs. 

Top SBI Fund Managers

Meet the key leaders behind SBI Mutual Fund’s success:

Mr. R. Srinivasan – Chief Investment Officer (CIO) – Equity
With over 30 years in financial services, Mr. Srinivasan joined SBI Funds Management in 2009 and directly manages equity funds. He holds a postgraduate degree in Commerce and an MFM from Mumbai University.

Mr. Rajeev Radhakrishnan – Chief Investment Officer (CIO) – Fixed Income
Mr. Radhakrishnan joined SBIMF in 2008 as a fixed income manager and now leads the Fixed Income desk. Previously, he worked with UTI Asset Management. He has an engineering degree, a master’s in finance from Mumbai University, and is a CFA charter holder.

Mr. Denys de Campigneulles – Deputy Chief Executive Officer
With 35+ years of experience, Mr. Denys has been Deputy CEO of SBI Funds Management since 2020, joining from Amundi Group. His roles have included CIO of LCL Bank Paris and Deputy CEO Asia at Amundi Hong Kong.

Mr. D.P. Singh – Chief Business Officer
Mr. Singh has over 30 years of experience in banking and financial services and has been with SBI Funds Management since 1998. He oversees all business verticals.

Mr. Srinivas Jain – Chief of Strategy, Digital & Technology
Mr. Jain brings 29 years of financial services experience, including 22 years in investment management, joining SBI Funds Management in 2001. He oversees strategy, digital initiatives, and international business.

Ms. Aparna Nirgude – Executive Director & Chief Risk Officer
With over 26 years at SBI Funds Management, Ms. Aparna has led the Risk function since 2005 and has experience in investment management and research. She holds a Management degree from Jamnalal Bajaj Institute.

Mr. Ganesan Sonaimuthu – Chief Operating Officer
Mr. Ganesan, with 42+ years of experience, joined SBI Funds after a long tenure at SBI, holding positions such as General Manager. His expertise includes finance, credit, and investment management.ance, credit, and investment management.

Taxation on SBI Mutual Funds as per Union Budget for 2024-25

Equity Mutual Funds

These are the tax implications that apply when investing in SBI equity mutual funds:

Capital Gains Tax	Holding Period	Old Rate	New Rate
Short-Term Capital Gains (STCG)	Less than 12 months	15%	20%
Long-Term Capital Gains (LTCG)	More than 12 months	10%	12.50%

1. Tax-Free Limit: The capital gains up to ₹1.25 lakh per year are tax-free. This is an increase from the previous limit of ₹1 lakh.
2. Tax Rate: The gains exceeding₹1.25 lakh are now taxed at a flat rate of 12.5%. This is an increase from the previous rate of 10%.
3. Indexation: The benefit of indexation, which allowed investors to adjust the purchase price for inflation, has been removed for all asset classes, including equity mutual funds

Debt Mutual Funds

Capital Gains Tax	Holding Period	Old Rate	New Rate
Short-Term Capital Gains (STCG)	Less than 36 months	Taxed according to your income tax slab	Taxed according to your income tax slab
Long-Term Capital Gains (LTCG)	More than 36 months	10%	12.50%

1. No Indexation Benefit: The previous benefit of adjusting the purchase price for inflation is removed. Now, the entire gain after three years is taxable at 12.5%.
2. Change in Holding Period for Specified Mutual Funds: Previously, debt mutual funds with a holding period of over 36 months were taxed based on the investor’s tax slab, classified as Long-Term Capital Gains (LTCG). Now, for specified mutual funds where over 65% of the investment is in debt, the holding period for taxation has been reduced to over 24 months. These funds will still be taxed according to the investor’s tax slab as either LTCG or STCG.

Hybrid Mutual Funds

Type of Hybrid  Fund	Short-Term Capital Gains (STCG)	Long-Term Capital Gains (LTCG)	Indexation Benefit
Equity-Oriented Hybrid Funds	20% for holdings less than 1 year	12.5% for holdings over 1 year, with gains up to ₹1.25 lakh tax-free	Not available
Debt-Oriented Hybrid Funds	Taxed as per income tax slab for holdings less than 3 years	12.5% for holdings over 3 years	Not available

Note: Mutual fund schemes where neither the equity nor debt orientation exceeds 65% will now be classified as long-term investments after 24 months. The previous holding period for these funds was 36 months. These will be taxed at the revised LTCG tax rate of 12.5%.

Factors to Consider Before Investing in SBI Mutual Funds

• Fund Objectives and Strategy: Align your financial goals with the fund’s strategy. For example, if you seek long-term wealth creation, focus on the best SBI bank mutual fund for long-term.
• Performance History: Analyse historical performance over various market conditions. Top-performing SBI mutual funds for beginners with consistent returns can offer insights into future reliability.
• Risk Profile: Match your risk tolerance with the fund’s profile. Equity funds in the SBI top 5 mutual funds category may offer higher returns but come with greater risk. Debt funds are better for low-risk investors.
• Expense Ratio: Lower expense ratios enhance net returns. Evaluate costs carefully, especially when choosing the best fund in SBI mutual fund for maximum efficiency.

To Wrap It Up…

Exploring SBI Mutual Funds sheds light on a diverse range of investment options offered by one of India’s prominent financial institutions. The analysis emphasised the significance of aligning investment choices with individual financial goals, risk tolerance, and time horizon. By staying informed about fund categories, historical performance, and market trends, investors can make well-informed decisions tailored to their unique needs.

Looking for a Loan Against Mutual Funds (LAMF)? Explore LAMF on smallcase – 

You can now apply for a loan against mutual funds (LAMF) on smallcase. Explore the quick and paperless process with the following articles about the eligibility criteria, documents required, features, benefits and more on LAMF at smallcase!

What is Loan Against Mutual Funds?	LAMF FAQs	LAMF Eligibility & Documents	LAMF vs Personal Loans	OD Against Mutual Funds
Why Choose a Loan Against MF?	Who Should Apply for Loan Against Mutual Fund?	LAMF Features & Benefits	Introducing LAMF at smallcase	Insta LAS
LAMF – 5 Things to Know	LAS vs Personal Loan	What is Loan Against Securities?	India’s Credit Growth	HDFC LAMF
LAS Repayment	How to Qualify for LAS?	LAS – 5 Rules to follow	Common Queries About LAMF	ICICI LAMF
LAS When Market is High	Personal Loan on smallcase	How to Use Loan Against Mutual Funds?	6 Things to Know Before Applying for LAMF	Axis LAMF
FAQs: Loan Against Mutual Fund Top-up	SBI LAMF	Things to Know About LAMF	Loan Against ELSS Funds	Bajaj Finserv LAMF
Aditya Birla LAMF

Frequently Asked Questions (FAQs) on SBI Mutual Funds