Best SBI Mutual Funds in India for 2026

• Summary
• SBI’s schemes can have very different risk profiles, making risk assessment important before investing. The fund’s Riskometer should be considered alongside the investor’s own risk tolerance.
• SBI Nifty 50 ETF and SBI BSE Sensex ETF are passive funds that track major Indian stock market indices and have low expense ratios of 0.04% each, as shown in the table.
• SBI Focused Direct delivered the highest 3-year CAGR of 16.03% among the 10 funds listed, while SBI Contra Direct recorded the highest 5-year CAGR of 15.73%.
• AUM and expense ratio differ considerably across the selected funds. SBI Nifty 50 ETF has the highest AUM in the table at ₹2,16,009 crore, while SBI BSE Sensex ETF has an AUM of ₹1,22,954 crore.
• Past returns should not be the only selection criterion. Investors should also examine the fund’s benchmark, portfolio composition, investment strategy, expense ratio, risk level and investment horizon.

SBI Mutual Fund is the mutual fund arm of SBI Group that offers professionally managed investment schemes across equity, debt, hybrid, liquid, arbitrage and ETF categories. Each scheme has a different objective, portfolio structure and risk level. For example, SBI Nifty 50 ETF and SBI BSE Sensex ETF provide passive exposure to major market indices, while SBI Focused Fund follows a concentrated equity strategy and SBI Balanced Advantage Fund dynamically adjusts its equity and debt allocation. 

Best 10 SBI Mutual Funds: Quick Comparison

SBI Mutual Fund offers different fund schemes across equity, debt and hybrid categories, but each fund follows a different investment strategy. This guide compares 10 selected SBI funds using factors such as 3-year and 5-year CAGR, AUM, expense ratio, benchmark returns, minimum SIP and risk level as of 8th September 2026. 

Fund name	Category/ Plan	3 YR CAGR %	5 YR CAGR %	Benchmark 5 yr Return %	AUM in ₹ crores	Expense Ratio %	Minimum SIP in ₹	Risk
SBI Nifty 50 ETF	EQ-LC	7.61	7.70	10.4	2,16,009	0.04	–	Very High
SBI BSE  Sensex ETF	EQ-LC	5.88	6.71	9.53	1,22,954	0.04	–	Very High
SBI Liquid Dir	DT-LIQ	6.93	6.31	6.25	92,192	0.17	500	Moderate
SBI Aggressive Hybrid Dir	HY-AH	12.66	10.37	10.15	88,561	0.55	500	Very High
SBI Large Cap Dir	EQ-LC	9.34	9.55	11.49	55,431	0.68	500	Very High
SBI Focused Dir	EQ-Focused	16.03	12.40	12.34	50,041	0.57	500	Very High
SBI Contra Dir	EQ-VAL	11.21	15.73	12.34	48,266	0.61	500	Very High
SBI Arbitrage Dir	HY-AR	7.32	6.83	6.52	46,803	0.34	500	Low
SBI Large & Mid Cap Dir	EQ-L&MC	12.53	13.87	14.48	42,325	0.59	500	Very High
SBI Balanced Advantage Dir	HY-DAA	10.02	10.47	–	42,244	0.61	250	Very High

Top 10 SBI Mutual Funds in India

The following 10 SBI Mutual Funds have been selected across equity, debt, hybrid, liquid, arbitrage and ETF categories. The comparison considers factors such as historical returns, AUM, expense ratio, benchmark performance, minimum investment and risk level to highlight how these schemes differ in their portfolio and investment approach. 

1. SBI Nifty 50 ETF

SBI Nifty 50 ETF is a passive fund that aims to track the Nifty 50 Index. It gives investors exposure to 50 of India’s largest listed companies through a single investment. Since the portfolio follows an index, the fund does not depend on active stock selection by a fund manager. 

Strength: It provides exposure to 50 leading Indian companies through a single investment and follows the Nifty 50 Index. 

Weakness: Its returns closely follow the market, so investors cannot avoid losses when the Nifty 50 declines. 

2. SBI BSE Sensex ETF

SBI BSE Sensex ETF tracks the BSE index, which includes 30 large companies that are listed on the Bombay Stock Exchange. The fund offers concentrated exposure to some of India’s largest and most established businesses.

Strength: It provides access to 30 established companies through a single investment and follows a passive investment strategy. 

Weakness: With only 30 stocks, the portfolio is more concentrated than broader indices such as the Nifty 50. 

3. SBI Aggressive Hybrid Direct

SBI Aggressive Hybrid Direct combines equity investments with a smaller allocation to debt instruments. The larger equity exposure gives the fund growth potential, while the debt portion is intended to provide some balance during market movements. SBI classifies hybrid funds as investments that spread money across equity, debt and other assets to balance risk and return. 

Strength: The debt portion can provide some balance while the higher equity allocation keeps the fund focused on long-term growth. 

Weakness: Because equities form a major part of the portfolio, the fund can still experience sharp fluctuations during market corrections. 

4. SBI Liquid Direct

SBI Liquid Direct invests in short-term money-market and debt instruments and is designed for investors with a short investment horizon. It is different from an equity fund because its main purpose is relatively easier access to money and lower interest-rate sensitivity. 

Strength: It provides comparatively easier liquidity and is suitable for short-term money parking than an equity fund.

Weakness: Its return potential is limited compared with equity funds, making it less suitable for long-term wealth creation. 

5. SBI Large Cap Direct

SBI Large Cap Direct invests mainly in large and established companies. The portfolio focuses on businesses that generally have larger market capitalisation and more established operations than smaller companies. The portfolio gives investors exposure to major companies across different sectors while following a large-cap investment approach. 

Strength: Investing mainly in established companies can make the portfolio relatively more stable than one focused heavily on mid- or small-cap stocks. 

Weakness: Its focus on mature companies may limit growth potential compared with funds that have larger exposure to faster-growing mid- and small-cap businesses. 

6. SBI Focused Direct

SBI Focused Direct follows a more concentrated investment approach rather than spreading money across a very large number of stocks. This means the performance of selected companies can have a stronger impact on the overall portfolio. Its benchmark is the BSE 500 TRI, while the concentrated portfolio allows selected investments to have a meaningful impact on performance. 

Strength: The concentrated portfolio enables the fund manager to make better decisions on selected investment ideas.

Weakness: Since the fund holds fewer stocks, poor performance by a few major holdings can affect overall returns more sharply. 

7. SBI Contra Direct

SBI Contra Direct follows a contrarian investment strategy. Instead of simply following popular market trends, the fund looks for opportunities in stocks or sectors that may currently be undervalued or temporarily unpopular. SBI’s official objective is to generate long-term capital appreciation through a diversified equity portfolio following a contrarian strategy. The idea is to identify businesses that could benefit when market sentiment or their underlying performance improves. 

Strength: It can identify investment opportunities before they become popular if undervalued businesses recover 

Weakness: Stocks that appear undervalued may remain under pressure for a long period, so investors may need considerable patience. 

8. SBI Arbitrage Direct

SBI Arbitrage Direct aims to take advantage of price differences between the cash and derivatives markets. Instead of relying primarily on stock market direction, arbitrage strategies focus on capturing price differences. The scheme also invests part of its portfolio in debt and money-market instruments when required by its investment strategy. SBI states that arbitrage funds use temporary pricing inefficiencies rather than depending mainly on the market’s overall direction. 

Strength: Its strategy is less dependent on whether the stock market moves upward or downward. 

Weakness: Returns can decline when fewer profitable arbitrage opportunities are available in the market. 

9. SBI Large & Mid Cap Direct

SBI Large & Mid Cap Direct invests across both large-cap and mid-cap companies. This structure gives the portfolio a mix of relatively established businesses and higher-growth companies. This gives the portfolio a combination of established businesses and mid-sized companies with potentially higher growth opportunities. 

Strength: The mixture of large and mid-cap stocks provides a balance between relative stability and growth potential. 

Weakness: Mid-cap exposure can increase volatility, especially when markets are under pressure. 

10. SBI Balanced Advantage Direct

SBI Balanced Advantage Direct is a dynamic asset allocation fund that adjusts its exposure to equity and debt based on market conditions. SBI Mutual Fund states that its framework considers factors such as valuations, market sentiment and earnings while adjusting the portfolio. Its benchmark is the Nifty 50 Hybrid Composite Debt 50:50 Index, and the official minimum application amount is ₹5,000, with additional purchases starting from ₹1,000. 

Strength: Its dynamic allocation can reduce equity exposure when valuations are high and adjust the portfolio as market conditions change. 

Weakness: The fund may lag a fully equity-focused fund during a strong and prolonged stock market rally. 

How We Selected These SBI Funds

The SBI funds are selected based on the given factors.

• Assets Under Management (AUM): AUM represents the total value of money invested and managed by a fund. We considered funds with a substantial asset base across different investment categories.  

• Historical Performance: It indicates the returns across different time periods to understand the fund’s past performance. However, previous returns cannot guarantee similar results in the future. 

• Expense Ratio: The expense ratio represents the yearly cost of managing the fund. A lower ratio can help investors keep a larger share of their investment returns over time.  

• Passive and active options: The list includes ETFs such as SBI Nifty 50 ETF and SBI BSE Sensex ETF alongside actively managed funds, allowing investors to compare index-based and fund-manager-driven strategies. 

SBI Funds vs Other Fund Categories

The differences between SBI funds and other funds are outlined below.

Basis	SBI Funds	Equity Funds	Debt Funds
Meaning	Mutual fund schemes offered by SBI Mutual Fund	Funds that primarily invest in company shares	Funds that primarily invest in fixed-income securities
Consists of	Equity, debt, hybrid, index and other fund categories	Large-cap, mid-cap, small-cap, flexi-cap, ELSS and more	Liquid, money market, corporate bond, gilt and other debt categories
Objective	Depends on the specific scheme	Long-term capital growth	Relatively stable returns and capital preservation
Risk	Varies from fund to fund	Generally moderate to very high	Generally low to moderate, depending on the category

Benefits and Risks of SBI Mutual Funds

The benefits of SBI mutual funds are given below.

• Different investment strategies: Investors can choose between passive options such as index ETFs and actively managed strategies such as focused, contra and balanced advantage funds.  

• Professional fund management: Investment decisions are handled by professional fund managers and research teams, which can be useful for investors who do not want to select individual stocks or bonds themselves.  

• Wide range of schemes: SBI Mutual Fund offers equity, debt, hybrid, liquid, arbitrage and ETF options, allowing investors to choose funds based on their goals and risk appetite.  

The risks associated with SBI mutual funds are given below.

• Market risk: Equity-oriented SBI funds can fall when stock markets decline, with mid-cap and small-cap funds generally experiencing higher volatility.   

• Tracking error in ETFs: SBI’s index ETFs may not exactly match the performance of their underlying indices because of expenses, transaction costs and tracking differences.   

• Scheme-specific risk: A concentrated fund, small-cap fund or sector-focused scheme may carry risks that are different from a diversified large-cap or liquid fund, so investors should check the scheme’s Riskometer and investment objective before investing. 

Who Should Consider and Avoid SBI Funds?

The wide range of SBI Mutual Fund schemes means they can cater to investors with different goals, investment horizons and risk levels. However, the right fund depends on factors such as market volatility, expected returns, liquidity needs and an investor’s ability to take risk.

Investors who should consider investing in SBI funds are given below.

• Long-term wealth seekers: Investors with a long-term horizon and the ability to tolerate market fluctuations may consider equity-oriented schemes such as SBI Large Cap, SBI Focused and SBI Large & Mid Cap. 

• Investors with different risk profiles: SBI offers options ranging from relatively lower-volatility funds such as liquid and arbitrage funds to higher-risk equity schemes. 

• Investors seeking diversification: Those who want exposure to multiple companies, sectors or asset classes through a single investment can consider SBI’s wide range of equity, hybrid, debt and ETF schemes. 

Investors who should not choose SBI funds are given below.

• Short-term investors: Equity-oriented SBI funds may not be appropriate for near-term needs, as market declines can erode investment value. 

• Investors seeking guaranteed returns: Mutual funds are market-linked and do not provide assured returns, so they may not suit investors who cannot accept fluctuations or potential losses.  

• Investors uncomfortable with volatility: Those who cannot tolerate temporary losses may find focused, mid-cap or aggressive hybrid funds unsuitable. 

How to Choose an SBI Mutual Fund

SBI offers funds with very different portfolio structures, so selection should be based on what the scheme actually invests in, rather than simply choosing the fund with the highest recent return. For example, an investor comparing SBI Large Cap with SBI Large & Mid Cap is taking different levels of mid-cap exposure, while SBI Nifty 50 ETF and SBI Contra Fund follow completely different investment approaches.   

• Investment Goals: Choose the fund based on what you are investing for, such as long-term wealth creation, tax saving, retirement or short-term money management.  

• Match the benchmark: Compare a fund with the benchmark it is designed to follow or outperform. For instance, an index ETF should be assessed mainly on how closely it tracks its underlying index, while an active fund should be evaluated against its designated benchmark. 

• Look at the investment strategy: SBI Contra Fund looks for contrarian opportunities, whereas SBI Balanced Advantage Fund dynamically changes its equity and debt allocation. The strategy should match your willingness to stay invested through different market cycles.   

• Consider your holding period: Equity-heavy schemes such as SBI Focused, SBI Large Cap and SBI Large & Mid Cap are more suitable for investors who can remain invested through market cycles, while SBI Liquid Fund serves a different, short-term purpose. 

SIP vs Lump Sum for SBI Funds

The difference between SIP and lump sum for SBI mutual funds is outlined below.

Basis	SIP	Lump Sum
Meaning	Invest a fixed amount in a fund regularly, typically monthly.	Invest a large amount in the fund at one time.
Suitable for	Investors who earn regularly and want to build their investment over time.	Investors who already have a larger amount available to invest.
Amount	A smaller amount and increase it over time.	A larger amount to be available upfront.
Market Timing	Money is invested at different market levels, so the investments do not depend on one entry point	The return can be more affected by the market level when they invest.

Direct vs Regular SBI Funds

The difference between direct and regular SBI funds is given below.

Basis	Direct SBI Funds	Regular SBI Funds
Meaning	Invest directly in the SBI Mutual Fund scheme without a distributor.	Invest through a mutual fund distributor or intermediary.
Charges	Usually lower because no distributor commission is included.	Usually higher because the expense ratio includes distributor-related costs.
Suitable for	Investors who can research funds and manage their investments themselves.	Investors who want help from a distributor while selecting and managing funds.
Returns	Can achieve slightly better returns over time due to lower expenses.	Returns may be slightly lower due to the higher expense ratio.

Taxation of SBI Mutual Funds

The taxation of SBI mutual funds depends on the type and holding period of the funds, according to the Income Tax Act, 2025.

For Equity Mutual Funds

• Short-term Capital Gain: When the investment is redeemed within less than one year or 12 months, it is considered short-term capital gains and is taxed at 20%. 
• Long-Term Capital Gain: When the investment is redeemed after 12 months, it is considered long-term capital gains and is taxed at a rate of 12.5% on the total income, with an exemption up to ₹1.25 lakhs.

For Specified Mutual Funds

• For specified mutual funds, any capital gains arising from the redemption of debt mutual funds under specified funds are referred to as short-term capital gains, irrespective of their holding period and are taxed as per the applicable income tax slab. They are measured as per the Income-Tax Act, on or after 1st April 2023

Other Best Mutual Funds Categories

Investors can check other Stockgro blogs, including those on various mutual funds.

Best Mutual Funds for Lumpsum Investment	Best Fixed-income Mutual Funds	Best Infrastructure Mutual Funds
Best Global Mutual Funds	Best Fixed Income Mutual FundsFunds	Best Banking Mutual Funds
Best Kotak Mutual Funds	Best Monthly Dividend-Paying Mutual	Best Nippon India Mutual Funds

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