When selecting mutual funds, many investors focus only on returns.
But over the long term, fund quality and cost are equally important.
A high star rating indicates consistency across market cycles, while a low expense ratio ensures more of your returns stay with you.
Using these two filters — 5-star rating by Value Research and low expense ratios — we’ve shortlisted five equity and hybrid funds from SBI Mutual Fund.
Debt and commodity funds are excluded to focus on growth-oriented investments.
These funds cater to different needs: aggressive equity investing, balanced allocation, goal-based investing for children, conservative planning, and tax saving.
Top SBI Funds to Consider
SBI Contra Fund – Direct Plan – Growth (Expense ratio: 0.68%)
This fund follows a contra strategy, investing in stocks that are temporarily out of favor but have long-term potential.
Returns: 1Y: 7.01%, 3Y: 21.49% (annualised), 5Y: 26.18% (annualised), 10Y: 17.66% (annualised)
Risk profile: Very High, Beta: 0.90, Sharpe ratio: 1.09
Who it suits: Long-term investors with a high risk appetite.
SBI Balanced Advantage Fund – Direct Plan – Growth (Expense ratio: 0.71%)
Uses dynamic asset allocation, adjusting equity exposure based on market conditions.
Returns: 1Y: 10.74%, 3Y: 15.85% (annualised)
Risk profile: Very High, Beta: 0.62, Sharpe ratio: 1.28
Who it suits: Investors seeking equity participation with downside protection.
SBI Children’s Investment Plan – Direct Plan (Expense ratio: 0.82%)
An aggressive hybrid fund for long-term goals, like children’s education.
Returns: 1Y: 6.06%, 3Y: 24.68%, 5Y: 31.00%
Risk profile: Very High, Beta: 0.93, Sharpe ratio: 1.35
Who it suits: Parents with long time horizons and high risk tolerance.
SBI Children’s Savings Plan – Direct Plan (Expense ratio: 0.86%)
A conservative fund focusing on capital preservation and steady growth.
Returns: 1Y: 3.70%, 3Y: 12.87%, 5Y: 12.05%, 10Y: 12.02%
Risk profile: Moderately High, Beta: 0.91, Sharpe ratio: 1.32
Who it suits: Risk-averse investors or parents closer to education goals.
SBI ELSS Tax Saver Fund – Direct Plan – Growth (Expense ratio: 0.92%)
Equity fund with tax benefits under Section 80C and a three-year lock-in period.
Returns: 1Y: 6.89%, 3Y: 25.84%, 5Y: 23.06%, 10Y: 15.97%
Risk profile: Very High, Beta: 0.95, Sharpe ratio: 1.21
Who it suits: Investors looking to save tax while building long-term equity wealth.
Why These Funds Stand Out
All five SBI funds combine high quality, strong risk-adjusted performance, and low costs (expense ratios below 1%).
This ensures that investors don’t give away a large portion of returns to fees.
For long-term investors, especially those using SIPs, these funds can boost wealth significantly over time, even during volatile markets.