Best SIP Return: SBI Consumption Opportunities Fund:Many schemes of SBI Mutual Fund are giving good returns to investors. But there is one equity fund which has given the highest SIP returns among all the schemes of the country’s largest fund house. The name of this scheme of SBI Mutual Fund is SBI Consumption Opportunities Fund. If someone had invested only Rs 2000 every month in this scheme through Systematic Investment Plan (SIP) 25 years ago, then his fund value would now have exceeded Rs 1.25 crore.
What is SBI Consumption Opportunities Fund
SBI Consumption Opportunities Fund is an open-ended equity scheme that invests primarily in companies focused on consumers. This fund has given tremendous returns to investors over a long period of time. This fund has proved to be excellent for those who make regular investments for a long period through SIP.
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How to make Rs 1.26 crore from Rs 2000 SIP
This scheme has set a great example of wealth creation through regular investments, which you can see in the calculations given below. This shows how a SIP investment of Rs 2000 every month can create a corpus of Rs 1.26 crore.
– Scheme Name: SBI Consumption Opportunities Fund (Regular Plan)
– Monthly SIP: Rs 2000
– Investment period: 25 years
– Total investment in 25 years: Rs 6 lakh
– Annualized Return: 20.05%
– Fund value after 25 years: Rs 1,26,14,641 (Rs 1.26 crore)
SIP returns in different periods
SBI Consumption Opportunities Fund has given excellent annualized returns on investments through SIP since its inception, which you can see here:
– Annualized return on SIP in 3 years: 31.73%
– Annualized return on SIP in 5 years: 30.70%
– Annulized return on SIP in 10 years: 20.67%
– Annulized return on SIP in 15 years: 19.78%
– Annulized return on SIP in 20 years: 20.08%
– Annulized return on SIP in 25 years: 20.05%
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Excellent returns even on lump sum investment
SBI Consumption Opportunities Fund has given good returns on SIP as well as lump sum investments.
– Annual return on lump sum investment in 3 years: 25.57%
– Annual return on lump sum investment in 5 years: 25.15%
– Annual return on lump sum investment in 10 years: 17.72%
– Annual return on lump sum investment in 15 years: 21.29%
– Annual return on lump sum investment in 20 years: 20.52%
According to the above figures, if an investor had invested a lump sum of Rs 1 lakh in this scheme 20 years ago, then after 20 years his fund value would have been Rs 41,80,059. That means in 20 years his money would have increased more than 41 times.
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SBISpecial features of the scheme
– Rating (Value Research): 4 stars
– Risk Level: Very High
– Minimum investment: Rs 5,000
– Minimum SIP investment: Rs 500
– Exit Load (for exit before 30 days): 0.10%
– Expense Ratio (Regular Plan): 1.98%
– Expense Ratio (Direct Plan): 0.89%
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Asset Allocation of SBI Scheme
As of September 30, 2024, SBI Consumption Opportunities Fund has invested 97.15% of its total assets in equities and 2.85% in cash and cash-like assets. The share of different segments according to market cap in the equity portfolio is as follows:
– Investment in Large Cap Stocks: 39.65%
– Investment in Mid Cap Stocks: 36.92%
– Investment in Small Cap Stocks: 23.43%
of SBI schemeTop 5 Holdings
Company name/share in portfolio
– Ganesha Ecosphere: 6.12%
– Bharti Airtel: 5.07%
– Jubilant Foodworks: 4.04%
– United Breweries: 3.86%
– Hindustan Unilever: 3.53%
(Source: Value Research, AMFI)
Is this scheme right for you?
SBI Consumption Opportunities Fund aims to achieve long term capital growth by investing in consumer related companies. It is important to keep in mind that this is a thematic fund and the risk in it is high. Therefore, only those investors should invest money in it who have the ability to take more risk for better returns. Investing in equity mutual funds is good only for the long term. Therefore, investors who want to invest for less than 5 years should stay away from investing in it. If you want to invest money in this fund, then regular investment through SIP is a better way to do it. Long term investment through SIP helps in reducing the impact of market fluctuations.
(Disclaimer: The purpose of this article is only to provide information and not to advise investment in any fund. Equity mutual funds are directly affected by the ups and downs of the stock market. Take investment decisions with the advice of your investment advisor.)
