SBI Mutual Fund – A Kaleidoscope of Opportunities!

What is Mutual Fund?

Do you know what a mutual fund is? It is a professionally-managed investment scheme which is mainly run by an asset management company that pools in a group of people and invests their money in stocks, bonds and other form of securities. It is a kaleidoscope of opportunities as the interest rates can be very profitable and as the money is divided into several securities at the same time, the risk factor also diminishes.

mutual fund

mutual fund

For instance, if you are an investor, you could be interested in purchasing mutual fund units, which fundamentally characterizes your part of holdings in a specific scheme. Such units can be bought or redeemed as desired at the fund’s current net asset value (NAV). The net asset value keeps varying in accordance with the fund holdings. Therefore, every investor partakes equivalently in the gain or loss of the fund.

You must know that all the mutual funds are registered with the Securities and Exchange Board of India (SEBI). Mutual Funds work in the provisions of strict regulations set by SEBI to safeguard the interests of the investors.

SBI Mutual Fund

SBI Mutual Fund

SBI Mutual Fund

SBI Mutual Fund is India’s largest bank sponsored mutual fund. It has an astounding profile in judicious investments and steady wealth formation. It was setup on the 29th of June, 1987 and incorporated on 7th February, 1992. Its trustee is the SBI Mutual Fund Trustee Company Private limited. SBI Mutual Funds is a joint venture between State Bank of India and AMUNDI (France), a leading global fund management company.

SBI MF owes its patronage to SBI- India’s largest banking enterprise. The foundation has developed incalculably since its origin and now it is India’s leading bank, supported by over 80% of the top corporate houses of the nation. Also, SBI Mutual Fund is the 1st bank-sponsored fund to unveil an offshore fund – Resurgent India Opportunities fund.

One of the most interesting fact about the SBI Mutual Fund Schemes is that it has given returns of as much as 35 % in the past 1 year. SBI Mutual funds are known for their high returns and low risk factor. Many of its schemes have given very easy returns in the bygone year, which have overshadowed most asset classes, even bank deposits.

All the contact information of SBIMF here: SBI Mutual Fund Customer Care

Due to the impressive performance, we present Top schemes of SBI Mutual Fund, where you can invest small amounts like Rs.500-1000. We have included both debt & equity schemes. Given below are the Top Mutual Fund schemes by SBI:

  1. SBI Magnum Equity:

The SBI Magnum Equity has assets under management amounting to Rs. 2131 crores. The 3 year returns of the fund have been approximately 11. 47 % whereas the 5 year returns have been even greater at 15.69 %. SBI Magnum Equity has holdings in stocks like HDFC Bank, ICICI Bank, ITC and Reliance Industries. The fund also has many debt instruments in holdings along with some well-known government supported bonds. One can invest in the scheme with a small systematic investment plan (SIP) of Rs. 500 with an initial SIP of Rs. 1000. The NAV of the fund is Rs. 92 in the growth plan and Rs 32.13 in the dividend option (September 2017).

  1. SBI Banking & Financial Services Fund –

The basic SBI Banking and Financial services have given a return of 22.72% in the bygone year. It is an excellent set of return anybody can perceive. The growth plan accounts a NAV of Rs. 14.79 (September 2017). One can invest with lesser sums of Rs. 5000. The SBI Banking Fund has profoundly invested in the banking sector with HDFC Bank, ICICI Bank, Axis Bank, Kotak Mahindra Bank and IndusInd bank. If you are looking for long term investment then purchase the fund.

  1. SBI Contra Fund:

The SBI Contra Fund is one more excellent performer of the past year. It has generated a return of 12.93% in the last year. SBI Contra Fund portfolio is very varied. Its top allotments are SBI, HDFC Bank, Divis Labs, Elgi Equipment, Reliance Industries and HCL Technologies. One can start a SIP by investing with a mere amount of Rs. 500 per month. Though the opening amount of investment that is required is Rs. 5000.

  1. SBI Magnum Midcap Fund:

In a large span of time, SBI Magnum Midcap Fund has been an amazing SIP from the State Bank of India. It has made a five year return of 28%, which is phenomenal. Existing in the midcap arena, it is finest for investors who are eager to take a risk and earn higher profits. SBI Magnum Midcap Fund has made a return of 8.88 % in the past year. The scheme has a Net Asset value of Rs. 76.36 (September 2017). Whereas the dividend plan is of Rs. 32.92. The portfolio of the fund comprises of stocks such as Cholamandalam, Strides Shasun, Manpasand Beverages and Ramco Cements.

  1. SBI PSU Fund:

The SBI Public Sector Unit (PSU) Fund is instructed to capitalize in government owned companies. If you have an eye for such funds and trust that public sector undertaking can do fine in upcoming time then you must buy the SBI PSU Fund. One can capitalize in the scheme with minor amounts of Rs. 500. The SBI PSU Fund has provided a return of 23% in the bygone year. The dividend scheme has a net asset value of Rs. 12.26 (September 2017). It has capitalized in State Bank of India, Indian Oil Corporation, ONGC, Mahanagar Gas, Punjab National Bank along with a mass of other government companies.

  1. SBI Nifty Index Fund:

Going by the name itself, the SBI Nifty Index Fund capitalizes in the index stocks. It has made a return of almost 20% in the past year, due to the index stocks escalating in the past few years. The NAV in the scheme is Rs. 41.34 (September 2017) and in the dividend scheme, whereas in the growth scheme it is Rs. 80.11 (September 2017). This Fund has big holdings in HDFC Bank, HDFC, ITC Reliance Industries and Infosys.

  1. SBI Short Term Debt Fund:

The SBI Short Term Debt Fund is intended for people who are highly influenced by debt schemes. The SBI Short Term Debt Fund does not invest in equity but only in debt. A large part of its holding is in the government securities. The SBI Short Term Debt Fund has made a return of 8.65% in the past year. One can capitalize in the scheme with an opening investment of Rs. 5,000 & Rs 1,000 afterwards with a SIP.

  1. SBI Treasury Fund:

The SBI Treasury Fund is one more profitable a debt fund. A person who is risk averse towards equity funds would love to invest in this fund. The SBI Treasury Fund has made a return of 7.49 % in the past year. Most of the stock is in treasury bills, that is why this investment is extremely harmless. The SBI Treasury Fund has some experience to private debentures like LIC Housing and India Bulls Housing.

The main benefit of investing in a mutual fund is that it provides small investors access to professionally-managed securities that would be very problematic to create with less capital.

So, be a smart investor and step ahead towards multiplying your wealth with smart investments like SBI Mutual Funds!