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Best SBI Debt Mutual Funds

SBI Mutual Fund started as a joint venture between Amundi, an Asset Management Company based in France, and the State Bank of India. Established in June 1987, SBI Mutual Fund was India’s first non-UTI MF company. 

It is also the largest fund house in India in terms of asset size. As of 2nd April 2022, this fund house manages assets worth Rs.5.04 lakh crore, indicating a 35% growth in its average AUM in FY 2020-21.

This AMC offers approximately 60 schemes in various channels for prospective investors. These include equity schemes, hybrid schemes, solution-oriented schemes, and debt schemes, among others. 

A debt fund is a type of mutual fund that invests predominantly in fixed-income securities. The best SBI debt mutual funds 2022 invest in debentures, commercial papers, treasury bills, corporate bonds, government securities, and other money-market instruments of this sort. 

These instruments come with a pre-decided maturity date and rate of interest. Moreover, yields that MF investors receive is based on interest earned by them. As a result, debt mutual funds are also referred to as fixed-income funds. 

Investing in SBI debt mutual funds has its own set of advantages and disadvantages, based on the kind of scheme. Upsides of the best SBI debt mutual funds are stable returns, more flexibility, and high liquidity. As debt funds invest their assets in various fixed-income instruments, they considerably lower the associated risk for investors. 

However, these funds generally offer lower returns compared to more aggressive investment tools such as their equity counterparts. 

SBI Mutual Fund offers 10+ schemes under the category of debt funds. These schemes comprise various short- and long-term options under their investment portfolio.

Taxability

Prior to investing in any of the top SBI debt mutual funds, it is also imperative to understand their taxability. Debt funds are liable to two types of taxation depending upon their holding period:

Short-term Capital Gains Tax: The tax on debt MF units held for less than 3 years is calculated based on an investor’s income tax bracket. If investors redeem the best SBI debt mutual funds before 3 years, such gains are added to their taxable income and taxed as per their income slab. For instance, an investor belonging to the 10% income slab is liable to pay 10% + 4% cess as short-term capital gain tax or STCGT.

Long-term Capital Gains Tax: Debt funds redeemed after a period of 3 years of investment are subject to long-term capital gains tax or LTCGT. As a result, a 20% tax is applicable on long-term returns. Moreover, these funds also receive indexation benefits, which remain applicable for each year of holding a debt MF unit.

TDS: Investors must also be aware that tax deducted at source is not applicable on debt MFs.

Factors to Consider Before Investing

Knowledge about taxation of the best SBI debt mutual funds is imperative for investors to make informed investment decisions. Furthermore, a comprehensive understanding of several parameters is also crucial in this regard.

Expense ratio: It is the sum of expenses incurred for managing a debt fund scheme. The daily NAV is adjusted for the expense ratio. 

Duration: Debt funds are typically more sensitive to interest rate movements. In fact, prices of fixed-income securities are inversely related to interest rates. This price sensitivity of debt mutual funds is known as duration. The longer the duration, the more vulnerable an SBI debt fund is to interest rate fluctuations and vice versa. 

Interest rate regime: Under a falling interest rate regime, previously issued bonds are valued higher compared to freshly issued bonds. Similarly, in the case of a rising interest rate scenario, the value of previously issued bonds goes down. As SBI debt MFs invest in bonds, they may perform well when a falling interest rate regime is in place.

Credit risk of portfolio constituents: Credit rating agencies in India analyse the creditworthiness of issuers of fixed-income securities and their capacity to pay back.  Debt securities rated ‘AAA’ are considered to carry a low credit risk. Securities with a ‘C’ credit rating carry high default risk. High-risk portfolios, however, have the potential to deliver better returns. 

Assets under management: Also known as AUM, it is the market value of investments held by an MF scheme. The best SBI debt mutual funds with larger assets under management or higher AUM usually stand in a better position to distribute their fixed fund expenses across investors.

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List of Sbi Mutual Funds in India

Fund NameCategoryRisk1Y ReturnsRatingFund Size(in Cr)
SBI Small Cap FundEquityVery High11.5%4₹12,098
SBI Bluechip FundEquityVery High6.6%3₹31,443
SBI Flexicap FundEquityVery High6.3%3₹15,449
SBI Banking & Financial Services FundEquityVery High-1.6%5₹3,240
SBI Focused Equity FundEquityVery High8.2%4₹24,707
SBI Equity Hybrid FundHybridVery High7.9%4₹50,933
SBI Nifty Index FundOtherVery High7.8%3₹2,334
SBI Technology Opportunities FundEquityVery High13.7%0₹2,432
SBI Gold FundOtherModerately High4.6%3₹1,173
SBI Consumption Opportunities FundEquityVery High19.6%2₹953
SBI Magnum Ultra Short Duration FundDebtLow to Moderate3.4%3₹14,144
SBI Magnum Mid Cap FundEquityVery High16.2%3₹7,136
SBI Magnum Medium Duration FundDebtModerately High3.0%5₹9,968
SBI Conservative Hybrid FundHybridModerately High7.2%4₹5,976
SBI Magnum Gilt FundDebtLow to Moderate2.3%4₹3,530
View All

Let's have a closer look

Now let us jump and check about these top 10 mutual fund schemes.

SBI Small Cap Fund Direct Growth

Fund Performance: The SBI Small Cap Fund has given 24.95% annualized returns in the past three years and 19.43% in the last 5 years. The SBI Small Cap Fund belongs to the Equity category of SBI Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in SBI Small Cap Fund via lump sum is ₹5,000 and via SIP is ₹500.

Min Investment Amt₹5,000
AUM₹12,098Cr
1Y Returns11.5%

SBI Bluechip Direct Plan Growth

Fund Performance: The SBI Bluechip Fund has given 12.41% annualized returns in the past three years and 11.2% in the last 5 years. The SBI Bluechip Fund belongs to the Equity category of SBI Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in SBI Bluechip Fund via lump sum is ₹5,000 and via SIP is ₹500.

Min Investment Amt₹5,000
AUM₹31,443Cr
1Y Returns6.6%

SBI Flexicap Fund Direct Growth

Fund Performance: The SBI Flexicap Fund has given 12.63% annualized returns in the past three years and 11.92% in the last 5 years. The SBI Flexicap Fund belongs to the Equity category of SBI Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in SBI Flexicap Fund via lump sum is ₹1,000 and via SIP is ₹500.

Min Investment Amt₹1,000
AUM₹15,449Cr
1Y Returns6.3%

SBI Banking & Financial Services Fund Direct Growth

Fund Performance: The SBI Banking & Financial Services Fund has given 7.2% annualized returns in the past three years and 12.33% in the last 5 years. The SBI Banking & Financial Services Fund belongs to the Equity category of SBI Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in SBI Banking & Financial Services Fund via lump sum is ₹5,000 and via SIP is ₹500.

Min Investment Amt₹5,000
AUM₹3,240Cr
1Y Returns-1.6%

SBI Focused Equity Fund Direct Plan Growth

Fund Performance: The SBI Focused Equity Fund has given 14.5% annualized returns in the past three years and 15.56% in the last 5 years. The SBI Focused Equity Fund belongs to the Equity category of SBI Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in SBI Focused Equity Fund via lump sum is ₹5,000 and via SIP is ₹500.

Min Investment Amt₹5,000
AUM₹24,707Cr
1Y Returns8.2%

SBI Equity Hybrid Fund Direct Plan Growth

Fund Performance: The SBI Equity Hybrid Fund has given 12.59% annualized returns in the past three years and 12.59% in the last 5 years. The SBI Equity Hybrid Fund belongs to the Hybrid category of SBI Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in SBI Equity Hybrid Fund via lump sum is ₹1,000 and via SIP is ₹500.

Min Investment Amt₹1,000
AUM₹50,933Cr
1Y Returns7.9%

SBI Nifty Index Direct Plan Growth

Fund Performance: The SBI Nifty Index Fund has given 11.81% annualized returns in the past three years and 12.11% in the last 5 years. The SBI Nifty Index Fund belongs to the Other category of SBI Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in SBI Nifty Index Fund via lump sum is ₹5,000 and via SIP is ₹500.

Min Investment Amt₹5,000
AUM₹2,334Cr
1Y Returns7.8%

SBI Technology Opportunities Fund Direct Growth

Fund Performance: The SBI Technology Opportunities Fund has given 28.02% annualized returns in the past three years and 24.86% in the last 5 years. The SBI Technology Opportunities Fund belongs to the Equity category of SBI Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in SBI Technology Opportunities Fund via lump sum is ₹5,000 and via SIP is ₹500.

Min Investment Amt₹5,000
AUM₹2,432Cr
1Y Returns13.7%

SBI Gold Direct Plan Growth

Fund Performance: The SBI Gold Fund has given 16.61% annualized returns in the past three years and 11.3% in the last 5 years. The SBI Gold Fund belongs to the Other category of SBI Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in SBI Gold Fund via lump sum is ₹5,000 and via SIP is ₹500.

Min Investment Amt₹5,000
AUM₹1,173Cr
1Y Returns4.6%

SBI Consumption Opportunities Fund Direct Growth

Fund Performance: The SBI Consumption Opportunities Fund has given 17.86% annualized returns in the past three years and 14.23% in the last 5 years. The SBI Consumption Opportunities Fund belongs to the Equity category of SBI Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in SBI Consumption Opportunities Fund via lump sum is ₹5,000 and via SIP is ₹500.

Min Investment Amt₹5,000
AUM₹953Cr
1Y Returns19.6%

SBI Magnum Ultra Short Duration Fund Direct Growth

Fund Performance: The SBI Magnum Ultra Short Duration Fund has given 5.17% annualized returns in the past three years and 6.19% in the last 5 years. The SBI Magnum Ultra Short Duration Fund belongs to the Debt category of SBI Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in SBI Magnum Ultra Short Duration Fund via lump sum is ₹5,000 and via SIP is ₹500.

Min Investment Amt₹5,000
AUM₹14,144Cr
1Y Returns3.4%

SBI Magnum Mid Cap Direct Plan Growth

Fund Performance: The SBI Magnum Mid Cap Fund has given 22.09% annualized returns in the past three years and 12.75% in the last 5 years. The SBI Magnum Mid Cap Fund belongs to the Equity category of SBI Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in SBI Magnum Mid Cap Fund via lump sum is ₹5,000 and via SIP is ₹500.

Min Investment Amt₹5,000
AUM₹7,136Cr
1Y Returns16.2%

SBI Magnum Medium Duration Fund Direct Growth

Fund Performance: The SBI Magnum Medium Duration Fund has given 7.98% annualized returns in the past three years and 7.91% in the last 5 years. The SBI Magnum Medium Duration Fund belongs to the Debt category of SBI Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in SBI Magnum Medium Duration Fund via lump sum is ₹5,000 and via SIP is ₹500.

Min Investment Amt₹5,000
AUM₹9,968Cr
1Y Returns3.0%

SBI Conservative Hybrid Fund Direct Growth

Fund Performance: The SBI Conservative Hybrid Fund has given 10.3% annualized returns in the past three years and 8.11% in the last 5 years. The SBI Conservative Hybrid Fund belongs to the Hybrid category of SBI Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in SBI Conservative Hybrid Fund via lump sum is ₹5,000 and via SIP is ₹500.

Min Investment Amt₹5,000
AUM₹5,976Cr
1Y Returns7.2%

SBI Magnum Gilt Fund Direct Growth

Fund Performance: The SBI Magnum Gilt Fund has given 8.12% annualized returns in the past three years and 7.21% in the last 5 years. The SBI Magnum Gilt Fund belongs to the Debt category of SBI Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in SBI Magnum Gilt Fund via lump sum is ₹5,000 and via SIP is ₹500.

Min Investment Amt₹5,000
AUM₹3,530Cr
1Y Returns2.3%

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