Amid sharp volatility in equity markets over the past one year, only five SBI equity mutual funds have managed to deliver over 15% returns consistently across 1-year, 3-year, 5-year and 10-year periods. Here’s a closer look at these standout SBI funds, how they performed across market cycles, and what investors should keep in mind before investing.
Equity markets have been anything but smooth over the past one year. Sharp rallies, sudden corrections and heavy selling pressure across midcap and smallcap stocks ensured that returns remained muted for most mutual fund categories. In fact, barring largecap funds and a few select sectoral and thematic pockets, most equity categories struggled to even deliver double-digit returns in the last one year.
Against this volatile backdrop, the performance of a handful of SBI equity funds stands out. Only five SBI equity funds (direct plans) have managed to deliver over 15% returns consistently across 1-year, 3-year, 5-year and 10-year timeframes — an achievement that is rare, especially in a year when many categories slipped into single-digit or even negative returns.
Why the last one year was tough for equity funds
The past one year saw intense volatility in equity markets. Smallcap funds are still in the negative return zone for the 1-year period, clearly reflecting the heavy sell-off in that space. Midcap, flexicap, multicap and large & midcap categories have recovered only partially and failed to deliver double-digit returns over the same period.
Category-wise, largecap funds delivered around 11.65% returns in one year. Sectoral funds like banking and auto stood out with 26.52% and 20.55% returns, while thematic PSU and energy funds were among the few others to cross the 15% mark. Value-oriented funds also managed double-digit returns of around 11.27%.
It is in this context that the one-year performance of these five SBI equity funds becomes noteworthy.
The 5 SBI equity funds that stood out
1) SBI Focused Fund
Returns:
1 year: 20.20%
3 years: 19.97% CAGR
5 years: 17.32% CAGR
10 years: 16.59% CAGR
SBI Focused Fund follows a high-conviction approach, investing in a limited number of stocks. Despite its concentrated nature, the fund has delivered strong and consistent returns across market cycles. With assets of over Rs 43,000 crore, it reflects strong investor confidence.
Risk profile:
This is a very high-risk fund because it holds fewer stocks. However, its volatility has remained relatively controlled and it has handled market corrections reasonably well. It suits investors who are comfortable with short-term ups and downs and can stay invested long term.
2) SBI Large & Midcap Fund
Returns:
1 year: 15.88%
3 years: 18.83% CAGR
5 years: 19.18% CAGR
10 years: 16.26% CAGR
This fund invests across large and midcap stocks, offering a blend of stability and growth. It has been one of the consistent performers in its category over long timeframes and manages a sizeable asset base of over ₹37,000 crore.
Risk profile:
Classified as very high risk, mainly due to midcap exposure. However, the fund has shown relatively smooth return movements and has been less volatile than the broader market at times.
3) SBI Banking & Financial Services Fund
Returns:
1 year: 28.90%
3 years: 21.22% CAGR
5 years: 17.11% CAGR
10 years: 19.24% CAGR
This sectoral fund has benefited from the strong performance of banking and financial stocks. Its one-year return is among the highest in this list, reflecting the sharp rally in the banking space.
Risk profile:
A very high-risk fund as it is sector-focused. Returns can swing sharply based on interest rates and economic cycles, but the fund has managed downside risk well and delivered strong risk-adjusted returns.
4) SBI PSU Fund
Returns:
1 year: 21.34%
3 years: 29.67% CAGR
5 years: 29.06% CAGR
10 years: 15.50% CAGR
SBI PSU Fund has emerged as one of the biggest beneficiaries of the rally in PSU stocks. Its strong 3-year and 5-year numbers clearly show how sharply PSU stocks have performed in recent years.
Risk profile:
This is a very high-risk fund as PSU stocks are influenced by government policies and market sentiment. Volatility is high, but the fund has rewarded patient investors who stayed invested through cycles.
5) SBI Commodity Fund
Returns:
1 year: 19.77%
3 years: 17.73% CAGR
5 years: 17.96% CAGR
10 years: 17.87% CAGR
The commodity theme has worked well over long periods, and SBI Commodity Fund has delivered steady performance across all timeframes. However, it remains a niche and cyclical investment.
Risk profile:
Also a very high-risk fund, as commodity stocks depend heavily on global cycles. The fund can see sharp ups and downs and is suitable only for investors with high risk tolerance.
A word of caution: Don’t select funds only on past returns
While the performance of these SBI equity funds is impressive, investors should remember one crucial rule — past returns should never be the sole basis for selecting mutual funds. Market cycles change, sector leadership rotates, and strategies that worked well in the past may underperform in the future.
Before investing, it is important to look at factors such as your risk appetite, investment horizon, portfolio diversification and financial goals. Sectoral and thematic funds, in particular, can deliver sharp gains but also come with equally sharp corrections.
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