Investments

Top 5 SBI Mutual Funds with 30% annualised returns in 3 years – Money News


Mutual fund investors have seen massive erosion in their portfolio valuations over the last 6 months amid one of the longest corrections in the Indian equity market. So amidst all this, if you are thinking of investing, it is very important to focus on mid- to long-term returns also while choosing a fund because short-term yields might not give a clear picture. Here we have selected the top 5 funds of SBI Mutual Fund, one of the leading fund houses with a total assets under management (AUM) of Rs 10.75 lakh crore (as of 28 February, 2028). All these SBI funds have given more than 20% annualised returns over 3 years.

Why is a 3-year return important?

A 3-year period is a good benchmark to evaluate mutual funds. 1-year returns can be misleading at times, as global and domestic events can have a profound impact on the market in a particular period. For example, all mutual fund categories have been struggling in the last 6 months, as major stock indices have fallen by 10% to 25%. Due to this decline, the 1-year returns of many funds are looking poor. But funds that are giving a return of 20% or more in 3 years are considered to be really strong and sustainable funds.

Also read: Top 5 cheapest index funds to invest in 2025

Top 5 SBI mutual funds based on their 3-year annualised returns:

1. SBI PSU Fund – Direct Plan

Category: Sectoral

3-year returns (CAGR): 29.76%

Benchmark: BSE PSU TRI

Fund’s assets under management (AUM): Rs 4,149 crore

2. SBI Long Term Equity Fund – Direct Plan

Category: ELSS

3-year returns (CAGR): 23.80%

Benchmark: BSE 500 TRI

Fund’s assets under management (AUM): Rs 25,724 crore

3. SBI Healthcare Opportunities Fund – Direct Plan

Category: Sectoral

3-year returns (CAGR): 22.95%

Benchmark: BSE Healthcare TRI

Fund’s assets under management (AUM): Rs 3,113 crore

4. SBI Infrastructure Fund – Direct Plan

Category: Sectoral

3-year returns (CAGR): 22.71%

Benchmark: NIFTY Infrastructure TRI

Fund’s assets under management (AUM): Rs 4,325 crore

5. SBI Contra Fund – Direct Plan

Category: Contra Fund

3-year returns (CAGR): 22.06%

Benchmark: BSE 500 TRI

Fund’s assets under management (AUM): Rs 39,590 crore

(Data source: Value Research)

Also read: Top 10 tax-saving mutual funds in 2025 with 5-year returns up to 32 pc

3 out of the top 5 are sectoral funds and 1 contra fund

Interestingly, 3 out of these top 5 funds are sectoral funds, that is, they invest in a particular sector. Such funds can give great returns when their sector is performing well.

Apart from this, there is a contra fund, which usually invests in companies that are currently undervalued in the market, but which can have good long-term growth. There is also an ELSS fund in the list of top 5 SBI mutual funds based on 3-year returns.

Benefits and risks of investing in these funds

Benefits of investing in sectoral funds:

Strong long-term growth: These funds have been successful in giving good returns over a period of 3 years.

Ability to withstand market volatility: These funds have performed steadily despite the recent recession.

High growth potential in sectoral funds: If a sector booms, the funds associated with it can give tremendous returns.

Risks of investing in sectoral funds:

Risk of sectoral funds: These are dependent on a single sector, if that sector performs poorly then the funds will also be affected.

Uncertainty of contra funds: These funds invest in companies that may seem weak at the moment, so their performance can be slow sometimes.

Market risk will always remain: If the stock market falls, the NAV (net asset value) of these funds can also be affected.

For which investors are these funds right?

For long-term investors: If you can invest for 5 years or more, then these funds can prove to be good.

Those who are willing to take high risk: Sectoral and contra funds are especially suitable for those investors who expect better returns by taking more risk.

Not for first-time investors: If you are investing in mutual funds for the first time, then do proper research or consult a financial expert before investing in such funds.

Also read: Top 5 dividend yield mutual funds with highest returns in 5 years

Summing up

These top 5 mutual funds of SBI have performed well in the last 3 years. However, it is important to keep in mind your financial goals, risk capacity and time frame before investing. Only proper research and long-term planning increase the chances of getting better returns.

Disclaimer: The above content is for informational purposes only. Mutual Fund investments are subject to market risks. Please consult your financial advisor before investing.





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