Last Updated on May 13, 2025 by vanessa sequeira
Equity investments can be made by directly buying stocks in the stock market or investing in equity mutual funds. Buying and selling equities might offer you overwhelming returns, but also asks for extensive knowledge and time. It also exposes your capital to risk. The second alternative is equity mutual funds that are managed by expert managers and have a proven track record. In this blog, we will explain how do equity mutual funds work and explore the list of best performing SBI equity funds 2025.
Table of Contents
List of Best SBI Equity Funds in India
| Name | Sub Category | AUM (Cr.) | CAGR 3Y (%) | Expense Ratio (%) |
| SBI PSU Fund | Thematic Fund | 5,035.09 | 36.51 | 0.82 |
| SBI Infrastructure Fund | Sectoral Fund – Infrastructure | 4,871.94 | 28.47 | 0.96 |
| SBI Healthcare Opp Fund | Sectoral Fund – Pharma & Health Care | 3,610.51 | 27.26 | 0.9 |
| SBI Contra Fund | Contra Fund | 44,068.57 | 23.67 | 0.63 |
| SBI Magnum Midcap Fund | Mid Cap Fund | 21,512.11 | 22.32 | 0.83 |
| SBI Large & Midcap Fund | Large & Mid Cap Fund | 30,133.31 | 19.22 | 0.75 |
| SBI BlueChip Fund | Large Cap Fund | 51,010.20 | 19.06 | 0.82 |
| SBI Flexicap Fund | Flexi Cap Fund | 21,660.94 | 14.07 | 0.85 |
Disclaimer: Please note that the above table is for educational purposes only, and is not recommendatory in nature. Please do your own research or consult your financial advisor before investing.
Note: The data on this SBI mutual funds list is from 13th May 2025 and derived using Tickertape Mutual Fund Screener
Overview of Top SBI Equity Funds
SBI PSU Fund
This fund targets long-term capital growth by actively investing in a diversified portfolio of equity stocks of domestic Public Sector Undertakings (PSUs) and their subsidiaries. It also includes exposure to debt and money market instruments issued by PSUs and other entities, offering investors liquidity through its open-ended structure.
SBI Infrastructure Fund
Aimed at capital appreciation over the long term, this fund focuses on companies that are directly or indirectly contributing to India’s infrastructure development. It maintains a diversified mix of equities and debt/money market instruments to balance growth and risk.
SBI Healthcare Opportunities Fund
This sectoral fund seeks to capitalise on growth opportunities within the healthcare industry. As one of the top-performing SBI equity mutual funds, it invests in a broad array of equity and equity-related instruments of companies engaged in the healthcare sector, targeting long-term wealth creation for investors.
SBI Contra Fund
Among the top high-return SBI equity funds, this fund follows a contrarian investment strategy and aims for maximum capital growth by identifying undervalued opportunities. It comprises five sub-funds focusing on themes such as Information Technology, Pharmaceuticals, FMCG, Emerging Businesses, and Contrarian stocks—those currently out of favour but with strong long-term potential.
SBI Magnum Midcap Fund
Designed for investors seeking long-term capital growth, this fund predominantly invests in midcap companies. These are firms with a market capitalisation below the lowest stock in the Nifty index (minus 20%) but above ₹200 crores. The fund maintains a diversified portfolio and offers the flexibility of an open-ended scheme.
Overview of SBI Fund House
SBI Funds Management Ltd. (SBIFML) is one of India’s established asset management companies, with over 30 years of experience in fund management. It is a joint venture between the State Bank of India (SBI), which holds a 63% stake, and Amundi, a global asset management company based in France.
SBIFML manages a wide range of investment products, including domestic mutual funds, offshore funds, and portfolio management advisory services for institutional clients. The company draws on its experience and the combined expertise of its parent institutions to manage investor assets across different market segments.
How Do Equity Funds Work?
Equity funds invest in the equity of different companies from different sectors in varying proportions. Fund managers select the stocks to invest in, considering the fund’s objective.
Equity funds must invest a minimum of 60% of their AUM (Assets Under Management) in equity shares. The remaining amount can also be invested in equity, or fund managers may decide to invest in debt schemes to hedge against risk.
Types Of Equity Funds
SBI differentiates mutual funds to give a better understanding to the investors. Let’s understand the categories of broad class sbi equity fund options:
Large-cap funds
Equity funds that invest in large-cap stocks are called large-cap funds. Large-cap companies are the top 100 listed companies as per market capitalisation. SBI mandates large-cap funds to invest at least 80% of their AUM in large-cap stocks.
Mid-cap funds
Funds that prefer mid-cap companies for investing are mid-cap funds. They must stake at least 65% of their asset pool in companies that are ranked from 101 to 250 in terms of market capitalisation.
Small-cap funds
Funds that invest 65% or more of their pooled assets in companies ranked from 250 and ahead in terms of market capitalisation.
Flexi-cap funds
Such funds are free to explore among the equity class but are mandated to invest at least 65% of their investments in equity instruments.
Multi-cap funds
These funds are required to invest at least 75% of their pooled corpus among equity. Further, they must also apportion 25% to large-cap, mid-cap, and small-cap.
ELSS funds
ELSS funds are required to invest 80% of their investments inequities. ELSS investments make you eligible for tax benefits up to Rs. 1.5 lakh under Section 80C of income tax. However, the ELSS scheme has a lock-in period of 3 yrs.
Top Fund Managers in SBI
- Mr. Bhavin Vithlani
Mr. Bhavin Vithlani brings over 18 years of experience in the finance sector and has been associated with SBI Funds Management since October 2018. He joined the fund house as an Equity Research Analyst and has contributed significantly to its equity research and investment strategies. An alumnus of Mumbai University, Mr. Vithlani holds a Bachelor’s degree in Commerce and a Master’s in Management Studies (Finance).
- Mr. Tanmaya Desai
With a background in Electronics Engineering and Finance, Mr. Tanmaya Desai has nearly 6 years of professional experience, including over 3 years in the Indian capital markets. He has been associated with SBI Funds Management since May 2008, transitioning from academia, where he served as a lecturer in the Electronics Department at D J Sanghvi College of Engineering, Mumbai. Mr. Desai holds a B.E. in Electronics, an MBA in Finance, and is a CFA Level III candidate (USA).
- Mr. Dinesh Balachandran
Mr. Dinesh Balachandran brings more than 11 years of experience in the investment industry, primarily in equity research. Before joining SBI Funds Management, he spent a decade as a Research Analyst at Fidelity Investments in the USA. He holds a B.Tech from the Indian Institute of Technology, Bombay, and an M.S. from the Massachusetts Institute of Technology (MIT), USA. Mr. Balachandran is also a CFA charter holder.
Factors to Consider Before Investing in SBI Equity Funds
Before investing in SBI Equity Mutual Funds, it’s essential to evaluate several factors to ensure alignment with your financial goals, risk appetite, and investment horizon. Here are key considerations:
1. Investment Objective and Time Horizon: If you’re aiming for wealth creation over time, long-term SBI equity funds could be suitable, especially when paired with a disciplined SIP strategy.
2. Fund Performance: Review the SBI equity fund performance across various timeframes while also comparing it against benchmark indices and peer funds. While past performance is not a guarantee of future returns, it does offer valuable insight into the fund manager’s consistency and strategy effectiveness.
3. SIP Investment Potential: Starting a SIP in SBI equity mutual funds allows you to invest regularly, mitigate market volatility, and benefit from rupee cost averaging. SBI equity funds for SIP are particularly popular among retail investors aiming to build wealth systematically with relatively lower entry points.
4. Growth Orientation: Many SBI equity schemes are growth-focused SBI equity funds, which reinvest profits back into the fund instead of distributing dividends. These are well-suited for investors looking to compound their returns over time rather than seeking periodic payouts.
By evaluating these factors, you can make informed decisions and select SBI equity funds for SIP or lump-sum investment that align with your financial objectives.
Conclusion
Being the industry leader by asset size, SBI Mutual fund has goodwill to foster. It offers equity funds, among other funds set up to cater to varying investment goals. Equity funds always bear high-risk reasons, and only if your investment style allows you to take this calculated risk you can consider adding SBI equity funds to your portfolio.
Frequently Asked Questions Around SBI Equity Funds
Which SBI equity mutual fund is best?
Here are some of the best SBI equity funds accordingly to 3Y CAGR:
– SBI PSU Fund
– SBI Infrastructure Fund
– SBI Healthcare Opp Fund
Note: This list is for educational purposes and is not recommendatory in nature.
How to identify the best SBI equity mutual fund?
You can calculate SBI mutual fund SIP returns using the formula:
A = P × [(1 + r)^n – 1] / r × (1 + r)
where A is the future value of SIP investments, P is the monthly SIP amount, r is the monthly return rate, and n is the number of months. This gives you the estimated value of your investment at maturity.
Which SIP is best for 5 years in SBI?
Here are some of the top SBI equity funds accordingly to 5Y CAGR:
– SBI Contra Fund
– SBI PSU Fund
– SBI Magnum Midcap Fund
– SBI Infrastructure Fund
– SBI Large & Midcap Fund
Note: This list is for educational purposes and is not recommendatory in nature.
