Is SBI Mutual Fund Safe for 2025? Plan Your Next Move
Did you know that the SBI Mutual Fund manages a massive AUM of Rs.11,16,708 crores?
It is impossible to grow this much without investors’ faith in it. However, it is still every investor’s right to ask about the safety of a fund before trusting their money with it.
This analysis will help you find out if the SBI mutual fund is a secure investment in 2025 or not.
It has been broken down into three sections, each containing necessary information that will tell you about the safety of this fund house and key attributes contributing to its enormous size.
So let us start the conversation with the top 5 reasons why SBI Mutual Fund is safe for you.
Top 5 Reasons Why SBI Mutual Fund is Safe for You
When it comes to the safety of your hard-earned money, “No stone should be left unturned.”
So, to get the answer to the question: Is the SBI Mutual Fund safe? The following 5 reasons may help you:
1. Regulatory Compliance
The fund house strictly follows the regulations mandated by SEBI (Securities and Exchange Board of India) regarding Mutual Funds. It also does not leave any loose corners when it comes to protecting your data.
If you have any issues with the services of the fund house, you can always file a complaint through the grievance redressal mechanism. Investors’ trust is the utmost priority for the AMC.
2. Financially Stable
The State Bank of India, as one of the largest banks in India, provides strong financial stability to the fund house. The bank is ranked among the top 100 in the world which further signifies its strong reliance.
Due to the support of such a giant bank, the fund house has managed to attain a gigantic AUM worth over Rs.10 lakh crores. This further strengthens its stability and shows investors’ confidence in it.
3. Transparent Operations
The AMC implements two holistic initiatives that obligate it to carry out its operations with utmost transparency. One is the SEBI Stewardship Code that mandates the SBI Mutual Fund to actively monitor its partner companies.
And another is the ESG Framework (Environment, Social and Governance) shows its commitment towards investors’ sentiments, which further helped the AMC attain investors’ trust across the nation.
4. Quality Investment
Quality investment enables the fund house to give you stable and risk-adjusted returns throughout your SIP or lump sum investment plans. And to do this, the AMC conducts in-depth market research.
It gathers all the factual data to make an unbiased investment decision for you. And based on the data, it selects companies with strong fundamentals thus leaving the poor performers out of the chart.
5. Thriving Performance
The fund house offers some of the most promising mutual funds that have been thriving and outperforming peers ever since they were launched. These schemes did not fall during even the toughest times.
For instance, the SBI Long Term Equity Fund and the SBI Contra Fund, which is often considered the best high return SBI mutual fund, delivered considerable returns even during the COVID-19 Pandemic and the Russia-Ukraine war.
Find Out: Best SIP Plans for 1 Year: Grow Your Money Fast
But how did the fund house thrive during the events that shook global economies? The answer lies in the investment strategies.
SBI Mutual Fund’s Investment Strategies to Mitigate Risks
To protect your portfolio safely and at the same time protect it from market volatility, the SBI Mutual Fund uses the following approaches:
1. Portfolio Diversification
The fund house maintains a significant level of diversity in the portfolios of its more than 70 mutual funds. This is to protect your money from market fluctuations and give consistent returns.
2. Prioritizing Quantitative Insights
Through schemes like the SBI Contra Fund, probably the best SBI mutual fund, the AMC has started to prioritize using quantitative insights. It has further optimized risk-adjusted returns for you through fact-based analysis.
3. Dynamic Asset Allocation
Schemes like the SBI Balanced Advantage Fund are based on a dynamic asset allocation strategy. This strategy actively adjusts the mix of equity and debt instruments following the market ups and downs.
Investment strategies can reduce risks for you from the end of the fund house. And SBI mutual fund returns have touched extreme heights, all because of these investment strategies.
But as every investor’s idol, Warren Buffett says, “Risk comes from not knowing what you are doing”.
So, to further reduce the risks for you, there are certain ways that you should consider following while investing in the SBI mutual fund.
Ways You Can Reduce Risks While Investing In SBI Mutual Fund
You can implement the following ways to protect your money from market risks and earn sustainable returns:
- Invest in various instruments including equity, debt, hybrid etc. to reduce the overall risk.
- Have a clear understanding of your financial goals and risk appetite before finding a suitable scheme.
- You can start a SIP to gain the benefits like rupee-cost averaging and the power of compounding.
- Keep monitoring the market regularly so that you can adjust your investment accordingly.
Pro tip: Set realistic goals using the SIP Calculator at your fingertips.
The fund house stands tall in the mutual funds industry for what it does. Otherwise, “Why do more than 50 lakh investors trust the AMC? “
Whether it's reducing risks or saving profits for you, the SBI Mutual Fund does not disappoint in either case.
Invest in the Best SBI Mutual Fund: Planning Your Next Move
Here are the best high return SBI mutual funds with which you can start a SIP for long term:
| Scheme Name | Launch Date | AUM (Cr) | 3 Yrs Returns | 5 Yrs Returns |
|---|---|---|---|---|
| SBI Contra Fund | 14-07-1999 | 42,220.00 | 21.42 | 35.25 |
| SBI Small Cap Fund | 01-09-2009 | 30,828 | 15.44 | 29.08 |
| SBI Long Term Equity Fund | 31-03-1993 | 27,730 | 24.41 | 28.97 |
| SBI Consumption Opportunities Fund | 14-07-1999 | 2,904 | 16.72 | 27.41 |
| SBI Multi Asset Allocation Fund | 21-12-2005 | 7,674 | 14.6 | 15.16 |
Don’t Miss Out: Best SIP Plans for 3 Years: Equity, Debt & Hybrid Category
Bonus Tip: You can save up to Rs.1,00,000 by investing in the SBI Long Term Equity Fund, which is designed under the ELSS category, giving tax benefits under section 80C of the Income Tax Act. Isn’t it amazing?
Now, let us end the discussion with the bottom line.
Bottom Line
The AMC is more than 25 years old now and it is growing and gaining the trust of new investors on a daily basis. You can also grow with the fund house by investing in one of the 70 schemes it offers. Just assess your individual financial goals, whether they are short-term or long-term and start a SIP investment of your choice.
