SBI Focused Equity Fund gave more than 6 times return: SBI Mutual Fund’s scheme SBI Focused Equity Fund has given an annualized return of 16.73% on investments made through SIP during the last 19 years. If an investor had started investing Rs 10,000 every month through Systematic Investment Plan (SIP) in this scheme 19 years ago, then on August 1, 2024, his fund value would have been Rs 1,39,66,318 i.e. about Rs 1.40 crore. Whereas in all these years, he would have invested only about Rs 22 lakh 80 thousand from his pocket through SIP. According to this, SBI Focused Equity Fund has given more than 6 times the return on investments made through SIP in the last 19 years.
Lumpsum + SIP investment increased by 6.57 times
In this mutual fund scheme of SBI (SBI Focused Equity Fund), if an investor would have invested Rs 10,000 every month through SIP after making a lump sum investment of Rs 1 lakh in the first year, then the value of his fund would have been even higher till now. The value of the investment of an investor investing in this manner would have been Rs 1,56,45,150 i.e. about Rs 1.56 crore on August 1, 2024. Whereas in 19 years, he would have invested only Rs 23 lakh 80 thousand from his side. This amount is about 6.57 times compared to his own investment. All these calculations related to the returns of SBI Focused Equity Fund are given for the regular plan of this scheme.
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SBI Focused Equity Fund Portfolio
As the name of the scheme suggests, SBI Focused Equity Fund is an equity fund of SBI Mutual Fund. As per the updated data till August 1, 2024, 93.92% of the scheme is invested in equity and 0.57% in debt instruments, while 5.51% of the fund is invested in cash and cash-like assets. In terms of market cap, large-cap stocks have a 73.56 percent weightage in the portfolio of SBI Focused Equity Fund, while midcaps have a weightage of 25.24 percent and small caps have a mere 1.2 percent.
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It is important to understand the risk before investing
Market fluctuations have a direct impact on the returns of equity mutual funds. Their past performance cannot be considered as a guarantee of giving similar returns in future. Therefore, investors should keep their risk profile in mind before deciding to invest in any equity fund. Also, one should understand that better returns on investments made in mutual funds are available only by making regular investments over a long period, the best way of which is to invest through SIP.
(Disclaimer: The purpose of this article is only to provide information, not to give investment advice. Take any investment decision only after consulting your investment advisor.)