SBI Mutual Fund
Most people who invest in mutual funds are looking for quick returns, but the real magic happens by investing for a long time. One such great example is SBI Focused Fund, which has proved that if SIP is continued with discipline and patience, even small amounts can create huge wealth in the future.
If an investor had started a SIP of only Rs 10,000 every month in this fund 20 years ago, then today the same investment would have created a corpus of around Rs 1.54 crore. This is a clear indication that despite market fluctuations, investing for a long time can yield excellent results.
Great SIP returns every time
The biggest feature of SBI Focused Fund is its consistent performance. In the last 3, 5, 10 and 20 years, this fund has consistently given annual returns of more than 16 percent through SIP. This is the reason why it has become the only fund of SBI, which has given excellent returns to investors in every major timeframe. This fund has given different returns to investors in different tenures. For example, the return on 3-year SIP has been 18.56 percent CAGR, 5-year SIP return has been 16.04% CAGR and 10-year SIP return has been 16.09% CAGR. At the same time, if we talk about 20 years’ returns, it has filled the investors’ purse.
Lump sum investment also has power
This fund has a strong track record not only in SIP but also in lump sum investment. An investment of Rs 1 lakh made 20 years ago would have grown manifold today. However, experts believe that SIP proves to be a safer and better option for common investors.
How does this fund invest?
SBI Focused Fund adopts a special type of investment strategy. It invests in a maximum of 30 companies and selects only those stocks on which the fund manager has the most confidence. The fund always keeps at least 65 percent of its money invested in the stock market and invests in large, mid and small cap shares as per the need.