When choosing mutual funds, many investors focus only on returns. But fund quality and cost are equally important over the long term.
High star ratings indicate consistency across market cycles.
Low expense ratios ensure more of your returns stay with you instead of going to fees.
Using these two filters — 5-star rating by Value Research and low expense ratios — we’ve shortlisted five top SBI Mutual Funds for equity and hybrid investors.
These funds cater to different needs: aggressive equity investing, balanced allocation, children’s goals, conservative planning, and tax-saving.
Top 5 SBI Mutual Funds to Consider
SBI Contra Fund – Direct Plan – Growth
Expense ratio: 0.68% (lowest on the list)
Strategy: Invests in undervalued stocks with long-term potential.
Returns: 1 yr: 7.01%, 3 yr: 21.49%, 5 yr: 26.18%, 10 yr: 17.66%
Risk profile: Very High, but less volatile than the market (Beta 0.90)
Best for: Long-term investors with high risk appetite.
SBI Balanced Advantage Fund – Direct Plan – Growth
Expense ratio: 0.71%
Strategy: Dynamic allocation; increases equity when attractive, reduces in overheated markets.
Returns: 1 yr: 10.74%, 3 yr: 15.85%
Risk profile: Very High but lower volatility than pure equity (Beta 0.62)
Best for: Investors seeking equity participation with downside protection.
SBI Children’s Investment Plan – Direct Plan
Expense ratio: 0.82%
Strategy: Aggressive hybrid for long-term goals like education.
Returns: 1 yr: 6.06%, 3 yr: 24.68%, 5 yr: 31.00%
Risk profile: Very High
Best for: Parents with long time horizons and high risk tolerance.
SBI Children’s Savings Plan – Direct Plan
Expense ratio: 0.86%
Strategy: Conservative fund focused on capital preservation.
Returns: 1 yr: 3.70%, 3 yr: 12.87%, 5 yr: 12.05%, 10 yr: 12.02%
Risk profile: Moderately High, low volatility (Standard deviation 4.44%)
Best for: Risk-averse investors or parents closer to education goals.
SBI ELSS Tax Saver Fund – Direct Plan – Growth
Expense ratio: 0.92%
Strategy: Equity investment with tax-saving benefits under Section 80C (3-year lock-in).
Returns: 1 yr: 6.89%, 3 yr: 25.84%, 5 yr: 23.06%, 10 yr: 15.97%
Risk profile: Very High
Best for: Investors looking to save tax while building long-term equity wealth.
Why These Funds Stand Out
All five funds combine:
High fund quality (5-star rating)
Low expense ratios (under 1%)
Strong risk-adjusted performance
For long-term investors, especially those investing via SIPs, this combination can quietly but significantly boost wealth, even in volatile markets.
Choosing funds based on quality and cost, not just returns, is key to long-term success.
