SBI Multicap Fund Review 2025: Best for Long-Term Investment?

If you are considering long-term investment options, you may have come across the SBI Multicap Fund, a diversified mutual fund that invests in large-cap, mid-cap and small-cap stocks. But with so many funds out there, what makes this fund a safe investment?

Well, you are in the right place to get your answers. Recent performance shows that the SBI Multicap Fund has consistently delivered strong returns and a balanced portfolio, with outstanding NAV of 17.21 making it an attractive choice for long-term growth.

This guide peels back the layers, revealing the top 5 stocks that will form the backbone of this fund’s portfolio in 2025. It will help you decide if these stocks are the right addition to your portfolio and what makes the SBI Mutual Fund a popular choice for investors.

SBI Multicap Fund Performance Review: Does It Deliver Strong Returns?

The SBI Multicap Fund has consistently performed over the past three years. This fund has achieved a 3-year rolling return of 16.32%, which is close to its benchmark, the NIFTY500 Multicap 50:25:25 TRI, which reflects a return of 18.57%. The consistent performance over three years suggests a reliable investment option for long-term investors.

Well, now track the fund's performance through a Systematic Investment Plan (SIP). The SBI Multicap Fund Returns has shown promising results.

Additionally, SBI Multicap Fund SIP Returns outperformed the category average. For a monthly SIP of Rs 10,000 over three years, the investment would have grown to approximately Rs 46,788, reflecting a 17.75% annualised return.

Its SIP return outperformed, making it an attractive option for investors looking for long-term growth tenure.

Also Know: SBI Multi Asset Allocation Fund: A Diversified Investment Approach 2023

Next, explore the fund’s portfolio and how it is positioned for growth in 2025.

SBI Multicap Fund Portfolio Review for 2025

The SBI Multicap Fund is a diversified mutual fund. Now, let us break down SBI Mutual Fund asset allocation and market capitalisation to see its potential for growth and stability.

1.Asset Allocation

The SBI Multicap Fund follows a growth-oriented investment strategy by focusing mainly on equities. Here is a quick look at how the fund allocates its assets:  

This allocation highlights Equity investments, focused on growth. The small portion in debt and cash equivalents offers some flexibility and stability in times of market downturns. If you can bear some market ups and downs in exchange for high returns, it is a perfect match for you.

2.Market Capitalisation

The SBI Multicap Fund strategically exposed its investments across large-cap, mid-cap and small-cap stocks.  Observe the fund’s market capitalisation in the chart below:

The SBI Multicap Fund market allocation is 39.17% to large-cap, 47.67% to mid-cap and 13.16% to small-cap stocks. Its balanced strategy grabs both stable, blue-chip companies & high-growth opportunities. This diversification strategy, backed by SBI Funds Management Limited, balances growth with risk management. Moreover, large-cap stocks provide stability to mid- and small-cap stocks, offering higher return potential.

Also Read: Best Mutual Funds to Invest in 2025: Low-Risk Options for High Return

Now, take a look at the key sectors driving the fund’s growth.

Sector Allocation in SBI Multicap Fund: What Are the Key Growth Areas?

The SBI Multicap Fund is invested across key sectors and is expected to lead to potential growth in 2025. The fund’s majority allocation is in the 22.3% financials, 22.53% materials and 16.63% consumer discretionary sectors, which make up a massive portion of its portfolio.

These are the top sectors in SBI Multicap Fund portfolio of India’s expanding economy is expected to continue supporting these sectors and their growth trajectory in the coming years, making them attractive investment areas for long-term growth.

Pro Tip: Know your future returns using the SIP Calculator in 3 easy steps.

Let’s uncover the top stocks in the portfolio that are backbone of the fund’s future.

Top Holdings in SBI Multicap Fund: Which Stocks Are You Betting On?

The SBI Multicap Fund is built around a strong foundation of top-performing stocks. Here are the top 5 stocks that form the backbone of this fund’s portfolio in 2025.

Here is a table showing the top holdings in the SBI Multicap Fund along with their percentage allocation:

These top- holdings help in long-term growth while providing exposure to strong, reputable firms in multiple sectors.

The portfolio is concentrated with ~56 high-conviction stocks, below the category average of 86 and which has a low turnover of ~31%, shows a buy-and-hold strategy with tactical adjustments.

Let us break down its risk and investment strategy.

What Makes the SBI Multicap Fund a Safe Investment?

The SBI Multicap Fund is a safe investment option due to its diversified, growth-oriented strategy managed by R. Srinivasan and Saurabh Pant.

1.Investment Strategy

The SBI Mutual Fund Investment Strategy fund is to mix a large, mid and small-cap stocks, which spreads investments in different market segments and reduces risk. This strategy ensures that the fund benefits from the stability of large-cap stocks while also grabbing the growth potential of mid- and small-cap stocks.

The SBI Multicap Fund 2025 is ideal for investors who are comfortable with moderate to high risk due to balanced growth with exposure to higher-reward opportunities.

However, more conservative investors, who prefer lower-risk options, can add funds that focus on debt securities or large-cap stocks for greater stability.

2.Fund Management

Behind the success of SBI Multicap Fund, there are experienced professional fund managers with over 25 years (R. Srinivasan) and 17 years (Saurabh Pant) of experience.

The fund focuses on bottom-up stock selection and fundamental analysis to identify undervalued companies with strong growth potential. This approach makes the SBI Multicap Fund a trustworthy option for long-term growth.

Don’t Miss : Best SIP Plan for 20 Years: With Equity, Debt & Hybrid Funds

Now, check out if it is the right choice for 2025.

Is SBI Multicap Fund is Best Investment for Long-Term Goals in 2025?

The SBI Multicap Fund Portfolio stands out for its strong stock quality. Its P/E ratio of 24.44 is greatly higher than the category average of 12.92, indicating a focus on high-growth companies.

It also shows 12.92% earnings growth, slightly below the category average of 13.8% and 9.99% sales growth, compared to the category average of 11.96%. However, it excels in cash flow growth, with 13.72%, well above the category average of 8.16%.

By investing in companies with strong fundamentals, high growth margins and solid cash flow, the SBI Multicap Fund diversifies across Best SIP Mutual Fund for long-term growth.

Moving forward to wrap up this Equity Multi Cap fund.

Smart Investments, Bigger Returns

Invest ₹3,000/Month Get

20 Lakhs

you Get

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Invest ₹5,000/Month Get

33 Lakhs

you Get

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Invest ₹10,000/Month Get

67 Lakhs

you Get

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To Conclude SBI Multicap Fund Review

To sum up, the SBI Multicap Fund offers a balanced mix of market caps, making it perfect for long-term investment. With continued outperformer performance, expert management and a highly allocated portfolio. It is a perfect addition for investors who prefer SIP in 2025.

Frequently Asked Questions (FAQs)

1. Is the SBI Multicap Fund Suitable for SIP Investment?

Yes, the SBI Multicap Fund is perfect for SIP investments. It offers consistent returns and long-term growth through compounding.

2. What Is the Minimum Investment in the SBI Multicap Fund?

The minimum investment is Rs 500 for SIP and Rs 1,000 for a lumpsum.

3. How Does SBI Multicap Fund Compare to Other Multicap Funds?

The SBI Multicap Fund compare to other multicap fund by its strong performance, a diversified portfolio and consistent returns.

4. What is the Exit Load of the Fund?

The exit load is 1% if redeemed within 1 year.

5. What is the Current NAV and AUM of SBI Multicap Fund?

The current NAV is Rs 17.78 and AUM of Rs 22,424.23 Cr as of mid-September.