Which SBI Mutual Funds Have Given the Best Returns?

SBI Mutual Fund’s scheme universe spans over 30 active and passive equity, hybrid, and debt schemes — and the highest-returning schemes within this universe have varied significantly across different market cycles. As of 2025-26, the strongest performers by 3-year CAGR are concentrated in sectoral (PSU, infrastructure), long-term equity (ELSS), multi-asset, and focused equity categories — reflecting SBI’s strength in thematic investing linked to India’s government-led capex cycle alongside its foundational equity offerings.

SBI Contra Fund — Consistent Long-Term Outperformer

SBI Contra Fund follows a contrarian investment philosophy — buying fundamentally sound companies that are currently out of favour with the market and selling them when sentiment reverses. This approach produces returns that are largely uncorrelated with broader market momentum, giving the fund a distinctive performance profile within SBI’s equity lineup. The fund has delivered among the strongest consistent risk-adjusted returns within SBI’s active equity schemes across rolling 3 and 5-year periods and carries a 5-star Value Research rating. For investors seeking differentiated active equity exposure from a conviction-driven process, SBI Contra Fund is the most widely cited SBI scheme by independent advisors.

SBI Long Term Equity Fund (ELSS) — Tax-Saving + Long-Term Wealth

SBI Long Term Equity Fund — SBI’s ELSS scheme — carries a 5-star Value Research rating and has delivered 3-year returns of approximately 19.69% CAGR as of May 2026. For investors seeking Section 80C tax benefits alongside equity returns, the fund serves dual purposes with a 3-year lock-in that enforces the holding discipline best suited to equity investing. The fund’s long operating history (18+ years) provides the most meaningful performance track record within SBI’s ELSS offerings.

SBI Infrastructure Fund — Sectoral Capex Beneficiary

SBI Infrastructure Fund has delivered approximately 20.55% 3-year CAGR as of May 2026 — capitalising on India’s sustained government infrastructure spending across roads, railways, defence, and energy. It carries a 3-star Value Research rating, reflecting the high volatility inherent in sectoral concentration. For investors who specifically want infrastructure sector exposure and understand that sectoral fund performance is highly cycle-dependent, SBI Infrastructure Fund provides focused participation in this theme.

SBI PSU Fund — Highest 5-Year Returns in Recent Rankings

SBI PSU Fund is listed among the top 5 SBI funds by 5-year CAGR as of recent 2026 rankings — reflecting the strong re-rating of Indian public sector enterprises across banking (SBI, Bank of Baroda), defence (BEL, HAL), oil and gas (ONGC, GAIL), and utilities (NTPC, Power Grid) from 2022 through 2024. The fund’s recent strong performance is directly linked to the government’s strategic focus on PSU disinvestment and capacity expansion. PSU funds carry specific risks — government policy changes, election cycle uncertainty, and the historical inefficiency of public sector management — that make them appropriate as a satellite rather than core holding.

SBI Small Cap Fund — Long-Term Growth Catalyst

SBI Small Cap Fund has been among India’s most consistently cited active small cap funds alongside Nippon India and HDFC equivalents. Its quality-first small cap selection approach — emphasising companies with proven business models, clean balance sheets, and experienced management — has produced competitive returns relative to the category average across multiple market cycles. Appropriate only for investors with minimum 10-year horizons and high risk tolerance.

SBI Focused Equity Fund — Concentrated Quality Portfolio

SBI Focused Equity Fund holds a maximum of 30 stocks with a 4-star Value Research rating. Its 18-year operating history makes it one of the few SBI equity funds with a track record spanning multiple complete market cycles. For investors who want concentration risk balanced by strict quality criteria within a single fund, the Focused Equity Fund provides a differentiated portfolio construction approach within the SBI AMC universe.

Overview Table: Best Performing SBI Mutual Funds

Frequently Asked Questions (FAQs)

Q1. Which SBI Mutual Fund has the best long-term track record?

SBI Contra Fund and SBI Long Term Equity Fund (ELSS) — both carry 5-star Value Research ratings and have delivered consistent performance across multiple market cycles with well-defined investment philosophies.

Q2. Is SBI Small Cap Fund a good investment?

For investors with minimum 10-year horizons and high risk tolerance — yes. SBI Small Cap Fund’s quality-focused stock selection has delivered competitive long-term returns. Not appropriate for goals under 10 years.

Q3. Why is SBI PSU Fund ranking highly in 2026?

The strong performance reflects the 2022 to 2024 re-rating of Indian public sector companies across defence, banking, and utilities sectors. PSU fund performance is highly correlated with government policy — evaluate before investing whether the policy tailwinds remain intact.

Q4. Is SBI Contra Fund the best fund in SBI’s lineup?

It has the strongest risk-adjusted track record among SBI’s active equity schemes and is the most consistently recommended by independent advisors. However, contrarian strategies can underperform for extended periods when momentum-driven markets dominate — it is not appropriate as the sole equity holding.

Q5. Where can I check current SBI Mutual Fund returns?

On sbimf.com under the scheme’s individual fund page, on Value Research Online, Tickertape, Groww, or directly on the SEBI’s AMFI website for NAV and return data.