Top SBI Mutual Fund SIPs for Long & Short Term Investments (2024)

SBI Mutual Funds are managed by SBI Funds Management Ltd and are backed by SBI Bank of India. In terms of investing, the SBI Systematic Investment Plan or SBI SIP Plan is a disciplined and convenient approach to investing in market-linked funds. 

Thus, in this article, we will delve into what are the best SBI Mutual Fund’s SIP options, its features, factors, benefits, and more. 

Top SBI Mutual Fund SIP Investments Based on 3Y- CAGR

Name	Sub Category	Plan	AUM (Rs. in cr.)	Absolute Returns - 1Y (%)	CAGR 3Y (%)	Minimum SIP (Rs.)	Expense Ratio (%)
SBI Magnum Children's Benefit Fund-Investment Plan	Solution Oriented - Children's Fund	Growth	2,023	39.87	32.04	5000	0.85
SBI Contra Fund	Contra Fund	Growth	30,520	49.28	30.01	500	0.63
SBI Long Term Equity Fund	Equity Linked Savings Scheme (ELSS)	Growth	23,887.64	61.03	28.39	500	0.94
SBI Small Cap Fund	Small Cap Fund	Growth	27,759.64	45.1	25.92	0	0.66
SBI Healthcare Opp Fund	Sectoral Fund - Pharma & Health Care	Growth	2,667	48.25	17.4	5000	0.95
SBI BlueChip Fund	Large Cap Fund	Growth	46,085	27.84	17	5000	0.83
SBI Nifty Index Fund	Index Fund	Growth	7,431.36	26.36	15.14	500	0.2
SBI Equity Hybrid Fund	Aggressive Hybrid Fund	Growth	68,372	26.48	14	5000	0.74
SBI Dynamic Bond Fund	Dynamic Bond Fund	Growth	3,093.77	7.967306175	6.55	3000	0.61
SBI Liquid Fund	Liquid Fund	Growth	70,912	7.332125877	6	12000	0.19

Disclaimer: Please note that the above list is for educational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing.

Note: The list of top SBI funds is from 14th June 2024 and the data is derived from Tickertape Mutual Fund Screener.

Pro Tip: You can use Tickertape’s Mutual Fund Screener to research and evaluate funds with over 50+ pre-loaded filters and parameters.

Overview of the Best SBI Mutual Fund SIP Investments

Here is a brief overview of the listed best SBI SIP Plans:

SBI Magnum Children’s Benefit Plan

SBI Magnum Children’s Benefit Fund is a Children Solutions mutual fund scheme from SBI Mutual Fund. As of 14th June 2024, the fund has an AUM of Rs. 2,023.42 cr. The fund has an expense ratio of 0.85%. Since launch, the fund has delivered 43.51% average annual returns. In terms of composition, the fund has an 86.73% allocation to equity and 5.32% to Debt. Furthermore, the minimum SIP amount is set at Rs. 5,000.

SBI Contra Fund

SBI Contra Direct Plan-Growth is an Equity mutual fund scheme from SBI Mutual Fund. This fund has existed for 11 years and 5 months, having been launched on 1st January 2013. SBI Contra Direct Plan-Growth has an AUM Rs. 30,520 cr. Since launch, it has delivered 18.12% average annual returns. The fund has an expense ratio of 0.63%, close to what most other contra funds charge. Furthermore, the minimum SIP amount is set at Rs. 500.

SBI Long Term Equity Fund

SBI Long Term Equity Fund Direct Plan-Growth is an ELSS mutual fund scheme from SBI Mutual Fund. This fund has been in existence for 11 years and 5 months, having been launched on 1st January 2013. As of 14th June 2024, the SBI Long Term Equity Fund Direct Plan-Growth has Rs. 23,887 cr. Over the last five years, the trailing returns of this fund is 29.53%. The fund has an expense ratio of 0.94% and has delivered 17.95% average annual returns since its launch. Furthermore, the minimum SIP amount is set at Rs. 500.

SBI Small Cap Fund

Launched in January 2013, the AUM of SBI Small Cap fund is Rs. 27,759.65 cr. as of 14th June 2024. SBI Mutual Fund AMC manages the SBI Small Cap Fund and is among the top-performing equity schemes with over 29.52% trailing returns in the last 5 years. The fund has an expense ratio of 0.66%. This SBI best SIP plan for 10 years consistently outperforms benchmarks and category returns in 1-year, 3-year, and 5-year periods. However, adopting a long-term SIP approach can help mitigate market risks.

SBI Healthcare Opportunities Fund

Launched in January 2013, the SBI Healthcare Opportunities Fund Direct Plan-Growth is a Sectoral-Pharma mutual fund scheme from SBI Mutual Fund. As of 14th June 2024, the fund has an AUM of Rs. 2,667.21 cr. The fund has an expense ratio of 0.95%, close to what most other Sectoral-pharma funds charge. Since launch, the fund has delivered 18.16% average annual returns. You can start investing in this SBI SIP best plan with a minimum investment of just Rs. 5,000.

SBI BlueChip Fund

Launched on 1st January 2013, the SBI Bluechip Direct Plan-Growth is a Large Cap mutual fund scheme from SBI Mutual Fund. As of 14th June, the fund’s AUM is Rs. 46,084.82. The fund has an expense ratio of 0.84%, close to what most large-cap funds charge. The fund has been able to generate better returns compared to other funds in the same category. Furthermore, it has delivered 16.34% average annual returns since its inception. You can start investing in this fund at just Rs. 5,000.

SBI Nifty Index Fund

Launched in January 2013, the SBI Nifty Index Direct Plan-Growth is a large-cap Index mutual fund scheme from SBI Mutual Fund. As of 14 June 2024, the fund’s AUM was Rs. 7,431.36 cr. The fund has an expense ratio of 0.2% and has delivered 13.32% average annual returns since launch. Furthermore, the minimum SIP amount is set at Rs. 500.

SBI Equity Hybrid Fund

SBI Equity Hybrid Fund is a balance between debt and equity securities. This SBI-focused equity fund direct plan, with lower risk and a 1% exit load, has outperformed the benchmark index over the last 3-5 years. As of 14th June 2024, the AUM of the fund is Rs. 68,372.47 cr. and has an expense ratio of 0.74%. Furthermore, you can invest in an SBI Equity Hybrid Fund with an SIP of Rs. 5,000. It is also one of the top mutual fund SBI investment plans on our list for SIP!

SBI Dynamic Bond Fund

Launched in January 2013, the SBI Dynamic Bond Direct Plan-Growth is a Dynamic Bond mutual fund scheme from SBI Mutual Fund. As of 14th June 2024, the fund has an AUM of Rs. 3,093.78 cr. and has an expense ratio of 0.61%. Since its inception, the fund has delivered 8.27% average annual returns. Furthermore, the minimum SIP amount is set at Rs. 3,000.

SBI Liquid Funds

SBI Liquid Fund Direct Plan-Growth is a Liquid mutual fund scheme from SBI Mutual Fund.  This fund has existed for 11 years and 5 months, having been launched on 1st January 2013. As of 14th June 2024, the AUM of the fund is Rs. 70,911.57 cr. and has an expense ratio of 0.19%. Thus, since its launch, it has delivered 6.80% average annual returns. Under the best SIP of the SBI list, you can start investing in this fund at Rs. 12,000.

How to Invest in SBI Mutual Fund SIP Investment?

Investing in SBI SIP plan for Mutual Fund is a straightforward process. Follow these steps to start your investment journey:

• Visit the Official Website: Begin by visiting the official SBI Mutual Fund website. Navigate to the ‘Invest Now’ section.
• Login or Sign Up: If you are an existing user, log in to your account. New users can easily sign up. Alternatively, you can proceed as a Guest User using your PAN.
• Download and Fill KYC Form: Download the KYC form from the website and complete all the necessary details.
• Submit the Form: Once the form is duly filled, submit it to the nearest SBI Funds Branch. You can locate the nearest branch by contacting their Customer Care through phone or email.

By following these simple steps, you can initiate your Mutual Fund SIP State Bank of India investment and set yourself on the path to financial growth.

What are SBI Mutual Fund SIP Investments?

SBI Systematic Investment Plan is a disciplined investment approach for wealth creation. By committing to regular contributions at intervals of your choosing—be it weekly, monthly, or quarterly, you can invest in a planned manner. Thus, SBI Mutual Fund SIP Investments offer a unique and adaptive route to financial success.

What is the Importance of SBI Mutual Fund SIP Investments?

Investors typically set specific investment goals to navigate future inflation, potential income growth, and current earnings. The factors influencing the achievement of these goals vary individually based on present needs and future aspirations.

An SBI Mutual Fund SIP plan serves as a valuable tool for meeting long-term financial objectives such as retirement planning and a profitable avenue for fulfilling short-term goals like marriage, home down payment, and a child’s education. With a systematic investment approach, SBI SIP plans for mutual funds enable individuals to effortlessly reach their life’s financial milestones.

How Does an SBI Mutual Fund SIP Investment Work?

Investing through a Systematic Investment Plan (SIP) is akin to a recurring deposit in a bank. With SBI SIP best plan, your chosen monthly investment amount is automatically debited from your registered bank account on a specified date.

Then, invest the fixed sum in your selected SBI mutual fund scheme. It’s crucial to understand that while your investment amount remains constant, your chosen fund’s Net Asset Value (NAV) fluctuates daily, impacting the number of units purchased with each SIP instalment. Consider this scenario: You start with a Rs. 1000 monthly SIP investment, and the initial NAV of your chosen SBI MF scheme is Rs. 50, allowing you to buy 20 units. If the NAV rises to Rs. 60 for the next instalment, you can only purchase 16.67 units. Conversely, if the NAV drops to Rs. 40, you can acquire 25 units. This variance in unit quantity due to changing NAV is known as ‘rupee cost averaging’.

Features of SBI Mutual Fund Planss for SIP Investments

Here are key features to consider:

Diverse Fund Options

SBI Mutual Funds presents a diversified portfolio of funds, catering to varying risk appetites and investment goals. Investors can align their SIP with their financial objectives, from equity to debt funds.

Robust Performance Tracking

The SBI Mutual Fund Houses platform offers comprehensive tools for tracking fund performance. Investors can easily monitor the NAV fluctuations, ensuring transparency and informed decision-making.

Systematic Transfer Plans (STP)

SBI SIP Plan for Mutual Funds allows investors to leverage Systematic Transfer Plans for added flexibility. This feature enables seamless transfers between fund schemes, optimising investment strategies based on market conditions.

Professional Fund Management

SBI mutual fund SIP investments are managed by experienced professionals who employ rigorous research and analysis. This ensures the fund’s investment decisions align with market trends and potential opportunities.

Low Minimum Investment

SBI Mutual Funds have a low minimum investment requirement for SIPs, making it accessible for investors with varying budgets. This flexibility enables individuals to start their investment journey with a reasonable commitment.

Rupee Cost Averaging Benefits

The fluctuating NAV in SIP investments under SBI Mutual Funds allows investors to benefit from rupee cost averaging. This strategic approach minimises the impact of market volatility over time, potentially enhancing overall returns.

Online Access and Convenience

Investors can conveniently manage their SIPs through the user-friendly online platform provided by SBI Mutual Funds. This digital accessibility simplifies the investment process, allowing investors to make informed decisions conveniently.

Benefits of Investing in the Best Mutual Funds for SIP

Embark on a journey of financial growth with SBI Mutual Fund SIP investments. Here are a few benefits of the best mutual funds for SIP investments at SBI:

• Disciplined Investing: SBI SIP ensures disciplined investment by allowing individuals to commit a fixed amount at regular intervals, catering to both short-term and long-term financial goals.
• Flexible Investment Tenure: Tailor your investment experience with SBI SIP. They offer flexibility in choosing investment terms, starting from a minimum of 6 months, and adjusting periods as needed.
• Investment Amount Flexibility: With a minimum investment limit of Rs. 500, SBI SIP provides flexibility in investment amounts. Investors can participate in multiple schemes simultaneously and adjust contributions based on their preferences.
• Long-term Growth Benefits: Initiate SBI SIP early to leverage the power of compounding. With investments primarily in equities, SBI SIP aims for long-term capital appreciation, overcoming market fluctuations for sustained financial growth.

How to Choose Good SBI Mutual Funds for SIP Investments?

Selecting the right SBI Mutual Funds for your SIP investments requires a strategic approach. Here are key considerations to guide your decision-making process:

Define Your Financial Goals

Clearly outline your financial objectives, whether it’s wealth accumulation, retirement planning, or specific short-term goals. Aligning your goals with the objectives of SBI mutual fund investment is essential.

Risk Tolerance Assessment

Evaluate your risk tolerance level. If you are risk-averse, opt for funds with a conservative approach, while those comfortable with higher risk may explore SBI equity mutual funds.

Fund Manager Expertise

Assess the experience and track record of the fund manager. A seasoned manager with a successful history can instil confidence in the fund’s management.

Expense Ratio

Consider the expense ratio, which represents the annual fees charged by the fund. Lower expense ratios contribute to higher returns for investors.

Diversification Strategy

Examine the fund’s portfolio diversification across sectors and industries. A well-diversified fund can mitigate risks associated with specific market movements.

Exit Load and Liquidity

Be aware of the fund’s exit load, a fee charged for redeeming units within a specified period. Additionally, ensure the fund offers sufficient liquidity for easy redemption when needed.

Returns 

Consider using the smallcase SBI SIP calculator. With the help of the SBI SIP Calculator offered by the State Bank of India (SBI), you can calculate the potential returns on SIP mutual fund schemes.

Why Invest in SBI Mutual Fund SIP Investment? 

When considering SIP investments, SBI Mutual Funds emerge as a noteworthy choice for several reasons. SBI Mutual Funds offer diverse investment options, aligning with varying risk appetites. The flexibility and convenience inherent in their SBI SIP offerings make it an attractive avenue for investors seeking a disciplined and gradual approach to wealth creation. Additionally, SBI Mutual Funds are backed by a robust track record and professional fund management, instilling confidence in investors looking for a reliable investment partner. Exploring the best mutual fund of SBI for SIP investments provides an opportunity to tap into the stability and expertise offered by a trusted financial institution.

Who Should Invest in SBI Mutual Funds for SIP?

SBI SIPs can be ideal for long-term commitments, utilising rupee cost averaging to navigate market fluctuations. Given the systematic contributions, those comfortable with measured risk and seeking a regular income may find SBI SIPs attractive. Diversification enthusiasts can leverage the range of schemes for risk spread. Aligning financial goals, whether wealth creation, retirement planning, or specific milestones, is crucial. Informed investors staying abreast of fund performance and market trends make more sound decisions. While SBI Mutual Fund SIPs can enhance a diversified portfolio, thorough research and, if needed, consultation with financial professionals ensure alignment with individual circumstances and objectives.

Challenges of Investing in the Best SBI Mutual Fund SIP Investment 

• Market Volatility: SBI SIPs are subject to market fluctuations. NAV variations impact returns, introducing an element of uncertainty.
• Unit Quantity Variability: Changing NAV levels affect the number of units acquired per SIP instalment. “Rupee cost averaging” may influence the overall investment strategy.
• External Influences: Economic factors, industry trends, and global events impact fund performance. Investors need to stay informed about external factors affecting their SIP investments.
• Dynamic Nature of NAV: NAV is dynamic, posing challenges in predicting fund values. Requires proactive monitoring and adjustment of investment strategies.
• Diversification Challenges: Achieving a balanced portfolio with the best SBI mutual funds requires careful selection. Ensuring diversification is challenging due to market dynamics and fund-specific factors.
• Performance Evaluation: Regular evaluation of fund performance is essential. Investors must assess whether the chosen funds align with their long-term financial goals.
• Liquidity Considerations: Liquidity constraints may impact the ease of redeeming investments. Investors need to consider the liquidity of their chosen funds.

Top SBI Fund Managers

Here is a list of Top SBI Fund Managers:

Name	Type of Fund	Number of Mutual Fund Schemes
R Srinivasan	Equity	9
Sohini Andani	Equity	2
Richard D’Souza	Equity	5
Dinesh Balachandran	Equity	3
Anup Upadhyay	Equity	6
Nidhi Chawla	Equity	4
Saurabh Pant	Equity	2
Tanmaya Desai	Equity	1
Ruchit Mehta	Equity	12
Milind Agarwal	Equity	1
Gaurav Mehta	Equity	5
Neeraj Kumar	Equity	2
Rajeev Radhakrishnan	Debt	18
Dinesh Ahuja	Debt	13
R. Arun	Debt	14
Mansi Sajeja	Debt	3
Lokesh Mallya	Debt	3

Taxation on SBI SIP Mutual Funds After the Union Budget for 2024-25

It is important for investors interested in SBI SIP mutual funds to understand the significant changes made to the taxation rates during the Union Budget 2024-25. Here are a few changes made to capital gain tax rates that may apply to your equity, hybrid and debt mutual fund investments:

Equity Mutual Funds

• Short-Term Capital Gains (STCG): The gains from equity mutual funds held for less than 12 months are now taxed at 20%. This is an increase from the previous tax rate of 15%.
• Long-Term Capital Gains (LTCG): For equity mutual funds held for over a period of over 12 months, gains are classified as long-term capital gains. The new budget introduces these key changes to the LTCG:

1. Tax-Free Limit: The capital gains up to Rs. 1.25 lakh per year are tax-free. This is an increase from the previous limit of Rs. 1 lakh.
2. Tax Rate: The gains exceeding Rs. 1.25 lakh are now taxed at a flat rate of 12.5%. This is an increase from the previous rate of 10%.
3. Indexation: The benefit of indexation, which allowed investors to adjust the purchase price for inflation, has been removed for all asset classes, including equity mutual funds.

Indexation was a method that allowed investors to adjust the purchase price of assets for inflation. This adjustment reduced taxable profits when selling assets like property or gold. Previously, these long-term capital gains were taxed at 20%. The new rule imposes a flat 12.5% tax on all long-term capital gains but eliminates any indexation benefits.

Capital Gains Tax	Holding Period	Old Rate	New Rate
Short-Term Capital Gains (STCG)	Less than 12 months	15%	20%
Long-Term Capital Gains (LTCG)	More than 12 months	10%	12.50%

Debt Mutual Funds

• Short-Term Capital Gains (STCG): If you sell your debt fund units within a period of 36 months, the gains are classified as short-term capital gains. The STCG will be taxed according to your income tax slab rate.
• Long-Term Capital Gains (LTCG): For debt funds held for a period over 36 months, the gains are classified as long-term capital gains. The new budget outlines a few changes on the LTCG for debt funds including:

1. Tax Rate: A flat 12.5% tax rate applies to these gains.
2. No Indexation Benefit: The previous benefit of adjusting the purchase price for inflation is removed. Now, the entire gain after three years is taxable at 12.5%.

Capital Gains Tax	Holding Period	Old Rate	New Rate
Short-Term Capital Gains (STCG)	Less than 36 months	Taxed according to your income tax slab	Taxed according to your income tax slab
Long-Term Capital Gains (LTCG)	More than 36 months	10%	12.50%

Hybrid Mutual Funds

Short-Term Capital Gains (STCG)

The tax on short-term capital gains depends on the fund’s asset allocation when it comes to hybrid mutual funds. Here is a breakdown of STCG tax rates according to their asset allocation in hybrid funds:

• Equity-Oriented Hybrid Funds (more than 65% in equity): The gains from units sold within 12 months are taxed at 20%.
• Debt-Oriented Hybrid Funds (less than 65% in equity): The gains from units sold within three years are taxed according to your income tax slab.

Long-Term Capital Gains (LTCG)

The capital gains tax on hybrid mutual funds that extend the specified period (12 or 36 months) is known as the long-term capital gain tax. The tax treatment under this condition is as follows:

• Equity-Oriented Hybrid Funds: The gains from units held for over a period of 12 months are taxed at 12.5%. The gains up to Rs. 1.25 lakh are tax-free.
• Debt-Oriented Hybrid Funds: The gains from units held for over a period of 36 months are taxed at 12.5% without indexation benefits. This means the entire gain is taxed at this rate, without adjustment for inflation.

Type of Hybrid  Fund	Short-Term Capital Gains (STCG)	Long-Term Capital Gains (LTCG)	Indexation Benefit
Equity-Oriented Hybrid Funds	20% for holdings less than 1 year	12.5% for holdings over 1 year, with gains up to Rs. 1.25 lakh tax-free	Not available
Debt-Oriented Hybrid Funds	Taxed as per income tax slab for holdings less than 3 years	12.5% for holdings over 3 years	Not available

Factors Influencing Investments in SBI Mutual Fund SIP Investments

Here are a few factors that you should consider before investing in SBI SIP schemes: 

• Market Conditions: Evaluate the current market scenario, economic trends, and potential impacts on AMC mutual funds. Market fluctuations can influence the performance of SBI SIP investment plan.
• Fund Selection: Choose SBI mutual funds that align with your financial objectives. Factors such as fund performance, expense ratios, and historical trends should guide your selection process.
• Asset Allocation: To mitigate risk, diversify your portfolio across various asset classes. SBI SIP provides options for equity, debt, and hybrid funds, enabling strategic asset allocation.
• Cost Considerations: Understand the costs associated with investing in an SBI mutual fund SIP, including entry and exit loads. Opt for funds with cost structures that align with your investment strategy.
• Performance Track Record: While past performance isn’t a guaranteed indicator of future returns, it serves as a valuable gauge of the  SBI mutual fund’s historical performance. A consistent track record of delivering returns in various market conditions enhances the fund’s credibility.

To Wrap It Up…

In conclusion, exploring the SBI Mutual Fund SIP investments reveals a range of options, each with its unique features, benefits, challenges, and influencing factors. Our list of the top 10 SBI Mutual Fund SIP Investments offer investors an array of choices to align with their financial goals and risk tolerance. As with any investment, it is crucial for individuals to conduct thorough research, consider their financial objectives, and remain vigilant to market dynamics.

Most Popular Mutual Funds:

As an investor to have a diversified mutual funds portfolio, you might also like to know more about these different types of funds for investing –

Large Cap Mutual Funds	Mutual Fund Bulk Deals	SBI Mutual Funds for SIP	SBI MF for Long Term SIP	Sectoral Mutual Funds	Short Term Mutual Funds	Tax Saving Mutual Funds	Mid Cap Mutual Funds
Small Cap Mutual Funds	Pharma Mutual Funds	80c Mutual Funds	1 Year Mutual Funds	International Mutual Funds	Tata Mutual Funds	Mutual Fund Portfolio	Best Mutual Funds
High Risk Mutual Funds	Micro Cap Mutual Funds	AMCs	MNC Mutual Funds	Equity Mutual Funds	Overnight Funds	ICICI Pru Mutual Funds	HDFC Mutual Funds
Best Investment Plans	Fixed Income Mutual Funds	Penny Stock Mutual Funds	Retirement Mutual Funds	Floater Rate Funds	Aggressive Hybrid Funds	Multi Asset Allocation Funds	Children’s Funds
Medium Duration Funds	Debt Funds	Corporate Bonds	Ultra Short Term Funds	Value Funds	Contra Funds	Focused Funds	Funds of Funds
Money Market Funds	Arbitrage Funds	Gold Mutual Funds	Books on Mutual Funds	Best Mutual Funds for SIP	SBI Mutual Funds	Low Risk Mutual Funds	Dividend Paying Funds
Long Term Mutual Funds	Banking Mutual Funds	Gilt Funds	Mutual Funds for 10 Years	Monthly Income Mutual Funds	Nifty 50 Index Funds	Lumpsum Investment Funds	Blue Chip Mutual Funds
Low Expense Ratio Funds

Frequently Asked Questions (FAQs) on SBI Mutual Fund SIP Investment