Choosing the right mutual fund is not always easy.
With hundreds of schemes available, investors often feel confused about where to put their money.
Two factors that many investors look at while selecting a fund are ratings and the expense ratio.
Funds with strong ratings and lower costs usually attract more attention because they may offer better value over time.
Some schemes from SBI Mutual Fund stand out when you look at Value Research ratings and relatively low expense ratios in direct plans.
These funds follow different investment strategies, including sector-focused, diversified, and large-cap investing.
Why Ratings and Expense Ratio Matter
Ratings from platforms like Value Research help investors quickly identify funds that have performed consistently within their category.
However, ratings should not be the only factor in decision-making.
They mainly reflect a fund’s historical performance and risk-adjusted returns compared with its peers.
The expense ratio is another key factor.
It is the annual fee charged by the fund house to manage your investment.
Even a small difference in cost can significantly affect long-term returns.
Direct plans usually have lower expense ratios because they do not include distributor commissions.
5 SBI Mutual Funds With Strong Ratings and Competitive Costs
Here are five schemes from SBI Mutual Fund that combine good ratings with relatively low expense ratios.
SBI Banking & Financial Services Fund
Launched in February 2015, this fund focuses on companies in the banking and financial services sector.
It tracks the NIFTY Financial Services TRI benchmark and has delivered a return of around 15.56% since launch.
As of February 28, 2026, the fund manages about ₹10,725 crore in assets and charges an expense ratio of 0.72% in the direct plan.
It currently holds a 4-star rating from Value Research.
Major holdings include ICICI Bank, State Bank of India, Axis Bank, Kotak Mahindra Bank, and HDFC Bank.
SBI Large & Midcap Fund – Direct Plan
This scheme was launched in January 2013 and invests in a mix of large-cap and mid-cap companies.
The fund tracks the NIFTY Large Midcap 250 TRI benchmark and has delivered about 16.73% returns since inception.
It currently manages ₹38,766 crore in assets, with an expense ratio of 0.72% in the direct plan.
The scheme also carries a 4-star Value Research rating.
Some of its key holdings include HDFC Bank, State Bank of India, Axis Bank, and Bharat Forge.
SBI Contra Fund – Direct Plan
The SBI Contra Fund follows a contrarian strategy, meaning it invests in stocks that may currently be undervalued or temporarily out of favor in the market.
Launched in January 2013, the fund tracks the BSE 500 TRI benchmark.
It has delivered around 15.81% returns since inception and manages ₹49,111 crore in assets.
The expense ratio is 0.73%, and it holds a 5-star rating from Value Research, the highest among the funds on this list.
Top investments include HDFC Bank, Reliance Industries, Tata Steel, Biocon, and Punjab National Bank.
SBI Focused Fund – Direct Plan
This scheme uses a focused investment strategy, meaning it invests in a limited number of high-conviction stocks.
Launched in January 2013, it tracks the BSE 500 TRI benchmark and has delivered about 15.37% returns since launch.
The fund manages ₹43,311 crore in assets and charges an expense ratio of 0.73%.
It currently has a 4-star rating from Value Research.
Key holdings include Alphabet Inc, State Bank of India, HDFC Bank, Muthoot Finance, and Bajaj Finserv.
SBI Large Cap Fund – Direct Plan
The SBI Large Cap Fund focuses on investing in large and well-established companies.
Launched in January 2013, the scheme tracks the BSE 100 TRI benchmark.
Since inception, it has delivered around 14.58% returns and manages ₹55,246 crore in assets.
The expense ratio is 0.79%, and the fund currently has a 4-star rating from Value Research.
Its major holdings include ICICI Bank, HDFC Bank, Reliance Industries, and Larsen & Toubro.
What Investors Should Check Before Choosing a Fund
While ratings and expense ratios provide useful insights, investors should not rely on them alone.
It is important to review factors such as long-term performance, volatility, consistency of returns, and portfolio diversification.
Investors should also consider the fund manager’s track record, sector allocation, and the fund’s investment strategy.
Most importantly, the chosen fund should match the investor’s risk tolerance and investment horizon.
A balanced approach that looks at performance, cost, and portfolio quality can help investors make more informed mutual fund decisions.