Best SBI Mutual Funds (2025): Schemes, Returns and Performance

Last Updated on Apr 24, 2025 by vanessa sequeira

SBI Mutual Funds (SBI Funds) have established themselves as a prominent name in India’s mutual fund industry, offering investors a range of investment options to build a well-diversified portfolio. With a legacy backed by the State Bank of India (SBI), one of India’s largest and most trusted financial institutions, SBI Mutual Funds provides investors with a variety of funds tailored to different financial goals, risk appetites, and investment horizons.

Table of Contents

About SBI Mutual Funds

SBI Funds Management Ltd (SBIFML) has a strong lineage tracing back to the well-known state-run State Bank of India (SBI). The fund house is a joint venture between SBI and France-based leading fund management company Amundi. Currently, SBI holds a 63% stake in SBIFMPL and the rest is held by Amundi India Holding, a wholly-owned subsidiary of Amundi Asset Management. Until June 2011, Amundi’s stake was held by Societe Generale Asset Management S.A. (“SGAM”), a subsidiary company of Societe Generale S.A (“SG”).

SBI Funds Management Ltd’s vision is “To be the most trusted and respected Asset Manager.” Its mission has been to make mutual funds a viable investment option in the country. As such, SBIMFL develops need-specific, innovative products, and educates investors about investing in capital markets through mutual funds. SBIMFL not only manages domestic mutual funds for individual investors but also international funds. It also offers portfolio management advisory services for institutional investors.

Top 10 SBI Mutual Funds (2025)

Name	Sub Category	AUM (Cr)	CAGR 3Y (%)	Expense Ratio (%)	CAGR 5Y (%)
SBI Contra Fund	Contra Fund	42,220.04	22.39	0.64	36.74
SBI Magnum Midcap Fund	Mid Cap Fund	20,890.26	18.73	0.83	33.06
SBI PSU Fund	Thematic Fund	4,788.77	32.01	0.83	32.65
SBI Infrastructure Fund	Sectoral Fund – Infrastructure	4,680.96	24.03	0.96	32.20
SBI Large & Midcap Fund	Large & Mid Cap Fund	29,416.39	17.50	0.75	28.21
SBI Healthcare Opp Fund	Sectoral Fund – Pharma & Health Care	3,610.51	24.59	0.9	26.72
SBI BlueChip Fund	Large Cap Fund	49,394.17	15.06	0.82	23.36
SBI Flexicap Fund	Flexi Cap Fund	21,035.17	12.66	0.86	22.60
SBI Gold	FoFs – Gold	3,582.23	21.04	0.1	13.46
SBI Conservative Hybrid Fund	Conservative Hybrid Fund	9,666.02	10.52	1.05	13.05

Note: The information is dated 24th April 2025. The parameters used to filter the list of top 10 SBI Mutual Funds on Tickertape are:

Fund house – SBI Funds Management Limited
AUM
3-yr CAGR
5-yr CAGR – set from high to low
Plan – Growth
Expense ratio

Overview of Top 10 Mutual Funds

1. SBI Contra Fund

A unique equity fund that seeks growth by investing in sectors poised for long-term potential, even if currently out of favour. One of the top SBI mutual funds, it follows a contrarian strategy with five thematic sub-funds focused on Information Technology, Pharmaceuticals, FMCG, Emerging Businesses, and Contrarian picks. It aims to uncover undervalued opportunities across the market.

2. SBI Magnum Midcap Fund

This fund targets long-term capital appreciation by investing in a diversified portfolio of midcap companies. One of the top performing SBI mutual funds 2025, it focuses on firms with market capitalisations above ₹200 crores but below the top range of large caps, offering exposure to high-growth, agile businesses with strong potential.

3. SBI PSU Fund

Designed for those looking to tap into India’s public sector growth, this fund actively invests in equity stocks of Public Sector Undertakings (PSUs) and their subsidiaries, alongside PSU-issued debt and money market instruments—offering a blend of capital appreciation and relative stability.

4. SBI Infrastructure Fund

A sector-focused fund aiming to benefit from India’s expanding infrastructure landscape. Among the top-rated SBI funds, it invests in companies directly or indirectly contributing to infrastructure development, along with exposure to debt and money market instruments, seeking to generate long-term capital growth.

5. SBI Large & Midcap Fund

This equity scheme seeks to deliver long-term capital appreciation by investing in a mix of large and mid-sized companies. Among the best-performing SBI funds, it focuses on high-growth businesses across market segments, combining stability with expansion potential in a single diversified portfolio.

Features of SBI Mutual Funds

SBI Mutual Funds offer a variety of investment options tailored to the needs of different investors. Here are some notable features:

Variety of Fund Types: SBI Mutual Funds offers a wide range of investment schemes, including equity funds, debt funds, hybrid funds, and liquid funds. Whether you’re looking for high-growth SBI mutual funds or more conservative options like SBI debt funds, the range of options allows you to choose according to your financial goals.
Experienced Fund Management: The funds are managed by a team of seasoned professionals who have a track record of navigating market fluctuations. This ensures that your investment is in capable hands, whether you choose equity or debt funds.
Tax Efficiency: Some SBI mutual fund schemes, such as equity-linked savings schemes (ELSS), offer tax benefits under Section 80C of the Income Tax Act, making them an attractive choice for tax-conscious investors.
Low Entry Point: SIP in SBI mutual funds allows investors to start with a small amount, making it accessible to a wide range of investors, including those with limited capital.

Advantages of Investing in SBI Mutual Funds

Diversification: One of the primary benefits of investing in SBI mutual funds is the opportunity for diversification. Whether you are investing in SBI equity mutual funds or debt funds, these funds typically invest in a wide range of securities, spreading risk and improving potential returns.
Professional Fund Management: SBI Mutual Funds are managed by expert professionals who have extensive experience in managing assets. Their expertise helps in making well-informed investment decisions based on market trends, analysis, and research.
Liquidity: Most SBI mutual funds offer liquidity, allowing investors to redeem their investments at any time, subject to the terms of the specific scheme. This provides flexibility for investors who may need access to their funds quickly.
Regular Income: Certain SBI mutual fund schemes, particularly those focused on debt securities, offer the potential for regular income in the form of dividends or interest. An SBI mutual fund portfolio may be beneficial for conservative investors looking for stable returns.
Tax Benefits: Tax-saving mutual funds like the SBI Tax Advantage Fund (ELSS) offer dual benefits of capital appreciation and tax savings, making them an attractive choice for investors looking to reduce their taxable income.

How to Choose the Best SBI Mutual Funds for Investing

Choosing the right mutual fund from the wide range of SBI fund options can be daunting. Here are some key factors to consider:

Investment Objective: Identify your financial goals, whether it’s long-term growth, regular income, or wealth preservation. For long-term growth, consider high-growth SBI mutual funds or the best SBI equity funds. If you’re looking for stability and regular income, explore SBI debt funds.
Risk Profile: Assess your risk tolerance. Equity funds generally carry higher risk but have the potential for higher returns, while debt funds are less risky but may offer lower returns. Hybrid funds can offer a balanced approach for moderate risk takers.
Fund Performance: It is essential to review the historical sbi mutual fund performance. While past performance is not always indicative of future returns, it can give you an idea of the fund’s consistency and risk management.
Expense Ratio: The expense ratio represents the cost of managing the fund. A lower expense ratio is better, as it leaves more of the returns for the investor. Compare the expense ratios of various funds before making an investment decision.
Fund Manager’s Track Record: Evaluate the experience and track record of the fund manager. A skilled fund manager can significantly impact the success of the fund, particularly in volatile market conditions.

Risks Involved While Investing in SBI Mutual Funds

As with any investment, SBI mutual funds also come with their share of risks:

Market Risk: For SBI mutual funds, the primary risk is market volatility. Stock prices fluctuate based on economic and geopolitical factors, which can impact the value of SBI equity mutual funds.
Interest Rate Risk: SBI debt funds are subject to interest rate risk. When interest rates rise, the price of debt securities generally falls, which can negatively impact the returns of debt-focused funds.
Credit Risk: If an issuer of a debt security defaults on its obligations, the value of the bond can decline, which affects the performance of debt mutual funds.
Liquidity Risk: While most SBI mutual funds offer liquidity, certain schemes may have restrictions on redemptions or charge exit loads. Ensure you understand the terms before investing.

Factors to Consider While Investing in SBI Mutual Funds

Investment Horizon: Determine whether you are investing for the short term or long term. For long-term goals, consider SBI mutual fund schemes for long-term capital appreciation, such as equity funds or hybrid funds. For short-term needs, consider debt funds.
Fund Manager’s Expertise: A well-managed fund can outperform the market over time. Check the experience and performance track record of the fund manager.
Fund Type and Asset Allocation: Choose between equity, debt, hybrid, or other types of funds depending on your risk tolerance and financial objectives.
Tax Implications: Consider the tax treatment of the SBI mutual fund returns, particularly capital gains tax on equity funds, which differ based on the holding period.
Inflation and Economic Environment: Keep an eye on the inflation rate and economic trends, as these can affect the performance of both equity and debt funds.

Conclusion

Depending on the underlying assets, mutual funds are of various types – equity funds, ELSS, focused funds, sectoral funds, and so on. So if you are wondering which SBI mutual fund is the best, the answer depends on factors subject to your investment objective, risk appetite, and return expectation. Do you want to accumulate wealth over the long term? You can consider equity funds. And if you wish to enjoy attractive returns along with tax benefits, ELSS can be a suitable option. Before investing in any mutual fund scheme, compare it with the peers of other fund houses to choose the best one.

Tickertape’s Mutual Fund Screener helps you filter funds based on various parameters such as historical returns, rolling returns, volatility, risk, AUM size, and so on. You can further evaluate the results using the respective Mutual Funds on Tickertape.

FAQs

How to invest in an SBI mutual fund?

There are two ways of investing in SBI mutual funds. One, directly via the fund house – online via the website or offline by visiting the fund house. Second, via an SBI mutual fund distributor. The second option is suitable for investors that don’t have a sound understanding of how mutual funds work and need expert advice when choosing a scheme.

Should you choose an SBI Mutual Fund solely based on its AUM size?

The AUM is nothing but the size of the fund, which may not have a bearing on its returns. A smaller fund may perform better compared to a larger one and vice versa depending on various factors such as the fund manager’s expertise, the credit rating of the underlying assets, maturity period, and interest rate. So, choosing a mutual fund solely based on AUM may not give you desired results.

Which type of SBI Mutual Fund should I invest in?

It depends on various factors such as your financial goal, investment horizon and risk. If you have a high-risk appetite and want to create long term wealth, you can consider equity funds. Alternatively, you can consider debt funds if earning moderate returns by taking a moderate risk is your goal. However, if you need quick access to your funds for liquidity purposes and are not looking to earn high returns, you could consider investing in liquid funds. Similarly, if you want to enjoy the best of both equity and debt, you can consider investing in hybrid funds.