A beginner’s guide to invest in SBI mutual fund schemes


Even in the 21st century, when technology has undergone huge advancements, the millennials are still not familiar with mutual funds. Among all other investment vehicles, mutual funds are a popular investment tool where one can diversify their income. While you plan to invest in mutual funds, there are many organizations in India that offer favourable terms. SBI mutual fund is one of the most reliable investors that you can opt for.

As a beginner, you may have several questions regarding the features and working of the mutual funds. Therefore, it is essential to have a thorough research before you start shortlisting.

Introduction to SBI mutual funds

SBI mutual funds gather money from different investors and invest the funds in various securities such as money market instruments, stocks, bonds, and many other assets. These mutual funds are operated by professional money managers who manipulate the funds to earn income or capital gains for those fund investors.

No matter if you are a small or individual investor, SBI mutual funds help to access professionally managed mutual fund portfolios like bonds, equity and other types of securities. When investing in mutual funds, every shareholder is proportionally engaged in the loses and gains of the fund. Mutual funds invest in a large variety of securities, and the performance is usually tracked by the change in the overall market situation, which depends on the aggregating performance of all the underlying investment.

Things to know before investing in SBI mutual funds

Before you opt for an SBI mutual fund, you have to submit some documents to start an investment fund. As identity proof, you may need to provide your Aadhaar Card, Passport, PAN Card and Driving License, etc. Further, one requires to submit the address proof documents such as the recent Utility Bill and rental agreement, etc.

Top SBI mutual fund Schemes

SBI mutual funds are divided into several different schemes on the basis of their portfolios, different types of securities they invest in and the returns they earn. There is almost every kind of scheme for every type of investor. Here are some top-performing schemes offered by SBI:

SBI Small Cap Fund Direct-Growth

This scheme is best as a long term capital investment such as a child’s education or retirement plan, etc. It generally provides a gain of 17.86%.

SBI Magnum MultiCap Fund Direct-Growth

This scheme is suitable for long term capital appreciation. Since its inception, it offers moderately higher returns of about 12.14%.

SBI Large & Midcap Fund Direct Plan-Growth

It is a Conservative Hybrid Fund, which generally offers returns of 12.55%. This scheme is suitable for retirement planning or for long term investments.

SBI Contra Fund

This fund can be a suitable one for the ones with long term goals. Because it offers moderately high returns up to 17.4%.

SBI Magnum Equity ESG Fund Direct Plan-Growth

It is a sectoral or thematic fund. It offers high returns of 14.11%. This scheme is also suitable for long term capital appreciation.

SBI Magnum Children’s Benefit Fund Direct

This scheme is suitable for medium to long term capital appreciation and children’s education. It is a Conservative Hybrid Fund. Since its inception, it has a record of providing good returns up to 9.34%.

SBI Focused Equity Fund Direct Plan-Growth

This is a Multi-Cap Fund. It offers higher returns up to 19.63%. It is among the best performing long term investment fund schemes.

Apart from these, SBI offers other types of schemes, namely, SBI Nifty Index Fund, SBI Corporate Bond Fund, SBI – ETF Nifty Next 50, SBI Magnum Gilt Fund and many more.

How to invest in SBI mutual fund using offline mode?

Once you have chosen your preferable mutual fund scheme, you can visit your nearby SBI branch and get started.

Step 1: Contact an SBI mutual fund representative or an empanelled SBI mutual fund distributor.

Step 2: Procure an application form any nearby SBI branch or empanelled distributor’s office. You can also download the application from the SBI official website.

Step 3: Fill up the application form and submit it along with the required documents.

Step 4: After that, the SBI mutual fund will allocate the funds and provide you with a folio number.

Step 5: You will receive an account statement once the transaction is processed.

How to invest in SBI mutual fund using online mode?

Handing your mutual funds online is much more comfortable as you get the convenience to track the mutual fund’s performance from anywhere. SBI also has a mobile application, which can help you to maintain your mutual fund account online. The following steps will help to understand how you can invest in SBI mutual fund online:

Step 1: Visit the online website of State Bank of India. Then, find the mutual fund investment portal.

Step 2: Fill up the application form on its official website. Once you are done, submit the necessary documents along with your application.

Step 3: After you are done with submitting the required documents, the SBI mutual fund will allocate the funds and provide you with a folio number. Later, you will receive an account statement after the transaction is processed.

Commonly associated terms with mutual funds

As a beginner, you should understand some of the popular terms associated with the mutual fund to earn better returns. Some of these terms include:

Exit load

It is the amount that is levied on the investor if he sells the funds before the stipulated time. It is primarily 1% NAV when the funds are sold before six months.

Expense ratio

Before any reimbursement or fee waiver is imposed, the expense ratio is the percentage, which is used during the operation of the fund’s assets.


Nav is the value of the asset at which an investor buys and sells the assets. Net asset value determines per unit market value of funds.


The full form of SIP is Systematic Investment Plan, and the full form of SWP is a Systematic Withdrawal Plan. In a SIP, you can invest a small amount from your salary every month.  An SWP is a facility, which helps an investor to withdraw the pre-determined amount from his existing investment.

Investing in mutual funds is one of the simple ways to grow wealth. The organization you choose also plays a vital role while investing in a mutual fund. Therefore, you can choose SBI mutual funds considering its name and track record in the banking industry.

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