SBI Mutual Fund High Return Scheme:A sectoral fund of SBI Mutual Fund, one of the largest fund houses in the country, has increased the wealth of its investors more than 4 times in the last 5 years. If someone had invested Rs 1 lakh in SBI Healthcare Opportunities Fund 5 years ago, then his current fund value would have been more than Rs 4 lakh. This scheme of SBI Mutual Fund mainly invests in shares of pharmaceutical and healthcare companies. This fund has given excellent returns not only on lumpsum investment but also on SIP.
Past Performance of SBI Healthcare Opportunities Fund
If you had invested Rs 1 lakh in SBI Healthcare Opportunities Fund 5 years ago, its current value would have been more than Rs 4 lakh. Whereas by doing SIP of Rs 10 thousand every month for 5 years, a fund of more than Rs 12 lakh would have been accumulated. You can see the details of this calculation here:
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Calculation of return on lump sum investment
Scheme: SBI Healthcare Opportunities Fund (Direct Plan)
Lump sum investment: Rs 1 lakh
Investment period: 5 years
5 Year Average Annual Return (CAGR): 32.90%
Value of investment of Rs 1 lakh after 5 years: Rs 4,14,596 (Rs 4.14 lakh)
Calculation of return on SIP investment
Monthly SIP amount: Rs 10 thousand
Investment period: 5 years
Total amount deposited through SIP in 5 years: Rs 6 lakh
5 year annualized return: 30.9%
Fund value of SIP investment after 5 years: Rs 12,80,774 (Rs 12.80 lakh)
Investment Strategy of SBI Healthcare Opportunities Fund
SBI Healthcare Opportunities Fund aims to create long-term wealth by investing in a wide portfolio of companies in the healthcare sector. About 96.24% of this fund is invested in equities, while 3.76% is invested in cash and cash-like assets. The equity portfolio of this fund mostly includes pharma and healthcare companies.
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Important details related to the fund
– Assets under management (AUM): Rs 3,357.28 crore (1 October 2024)
– Benchmark: BSE Healthcare Total Return Index (5-year CAGR: 29.87%)
– Benchmark Return (5 Years): 29.87%
– Risk Level: Very High
– Expense Ratio:
– Direct Plan: 0.90%
– Regular Plan: 1.96%
Top Holdings
stake in company/portfolio
Features of this fund of SBI
High returns in long term:The healthcare sector has high growth potential, and SBI Healthcare Opportunities Fund has delivered strong returns in the last 5 years.
High returns on SIP also: SBI Healthcare Opportunities Fund has also given better returns on investments made through SIP, which is considered a better way to invest amid market fluctuations.
Prospects of Healthcare Sector:In a country with a huge population like India, there are considered to be endless possibilities for expansion in the field of health services. In this sense, the healthcare sector is an emerging area for investment, in which demand is likely to remain in the long term.
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Risk Factors associated with SBI Healthcare Opportunities Fund
Sectoral Risk:Since this fund invests only in the healthcare and pharma sector, fluctuations related to this sector can also affect the performance of this fund. In this sense, there is a lack of sectoral diversification in this fund.
It is necessary to hold for a long period:To invest in this fund, you will have to maintain the investment for a long period, especially if you have made a lump sum investment.
High Risk:According to Riskometer, this fund comes under very high risk, hence it is considered suitable only for those investors who can take high risk.
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For whom is this scheme right?
SBI Healthcare Opportunities Fund is a good option for investors who want to invest in the healthcare and pharmaceutical sector and are willing to take higher risk to earn good returns in the long term. However, small investors should avoid investing in such sectoral funds, because this fund is focused on a particular sector, due to which many times they may have to face a lot of ups and downs. Instead, small investors should invest in more diversified funds like flexi-cap or multi-cap, as the risk in them is comparatively less. Despite this, investors who want to invest money in this sectoral fund should invest through SIP, which gives the benefit of averaging and makes it easier to face the fluctuations in the market. Apart from this, those investing in it should be prepared to stay in it for at least 7 years.
(Disclaimer: The purpose of this article is only to provide information, not to advise investment in any fund. Investments made in equity mutual funds are directly affected by the ups and downs of the stock market. Any investment decision should be taken by your investment advisor. Do it only after taking the opinion of.)
