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,
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