From public sector plays to healthcare and infrastructure, these SBI funds have outperformed over a 3-year horizon — but smart investing goes beyond just returns.
Why 3-Year Returns Matter More Than 1-Year Trends
The Indian stock market has faced significant volatility, especially in early 2025. But while short-term fluctuations can distort performance snapshots, three-year returns offer a better view of a mutual fund’s resilience and consistency.
SBI Mutual Fund — with an AUM exceeding ₹11 lakh crore and over 125 schemes — has seen notable performers across equity sub-categories. This article focuses on direct plans of the top 5 SBI equity funds based on 3-year returns.
Let’s take a closer look.
1. SBI PSU Fund – Top Performer in 3-Year Absolute Returns
Category: Thematic – PSU
Risk Level: Very High
AUM: ₹5,427 crore
Expense Ratio: 0.85%
- 3-Year CAGR: 37.04%
- Absolute Return: 158%
- 1 Lakh Lump Sum (3 Years): ₹2.5 lakh
- SIP of ₹10K for 3 Years: ₹5.45 lakh
- Benchmark: BSE PSU TRI
🔍 Why it’s soaring: Strong rebound in PSU valuations, government capex, and improving efficiency metrics in state-run enterprises.
2. SBI Healthcare Opportunities Fund – Focused Growth in Pharma & Health
Category: Sectoral – Healthcare
Risk Level: Very High
AUM: ₹3,849 crore
Expense Ratio: 0.89%
- 3-Year CAGR: 29.60%
- Absolute Return: 118%
- 1 Lakh Lump Sum (3 Years): ₹2.17 lakh
- SIP of ₹10K for 3 Years: ₹5.49 lakh
- Benchmark: BSE Healthcare TRI
🔍 Why it’s thriving: Renewed global demand for pharma, R&D innovation, and sector recovery post-COVID disruptions.
3. SBI ELSS Tax Saver Fund – Save Tax and Grow Wealth
Category: ELSS (Equity Linked Savings Scheme)
Risk Level: Very High
AUM: ₹30,616 crore
Expense Ratio: 0.93%
- 3-Year CAGR: 26.49%
- Absolute Return: 102%
- 1 Lakh Lump Sum (3 Years): ₹2.02 lakh
- SIP of ₹10K for 3 Years: ₹5.10 lakh
- Benchmark: BSE 500 TRI
🔍 Why it works: Offers tax benefits under Section 80C and long-term equity growth. Ideal for salaried professionals seeking tax-efficiency.
4. SBI Infrastructure Fund – Building Value in India’s Growth Story
Category: Sectoral – Infrastructure
Risk Level: Very High
AUM: ₹5,195 crore
Expense Ratio: 1.03%
- 3-Year CAGR: 26.76%
- Absolute Return: 104%
- 1 Lakh Lump Sum (3 Years): ₹2.04 lakh
- SIP of ₹10K for 3 Years: ₹4.92 lakh
- Benchmark: NIFTY Infrastructure TRI
🔍 Why it’s strong: Rising infrastructure investments, policy tailwinds, and core sector expansions have lifted long-term prospects.
5. SBI Contra Fund – Value Investing with a Contrarian Twist
Category: Contra
Risk Level: Very High (Low Risk Grade, High Return Grade)
AUM: ₹47,390 crore
Expense Ratio: 0.68%
- 3-Year CAGR: 24.38%
- Absolute Return: 92.63%
- 1 Lakh Lump Sum (3 Years): ₹1.92 lakh
- SIP of ₹10K for 3 Years: ₹4.88 lakh
- Benchmark: BSE 500 TRI
🔍 Why it stands out: Contrarian strategy focuses on undervalued stocks — a smart approach during market dips and recoveries.
Key Takeaway: Don’t Chase Past Returns Blindly
While these funds have delivered exceptional 3-year returns, it’s crucial to look beyond just numbers. Consider:
- Risk profile and volatility
- Fund manager strategy
- Asset allocation and sector exposure
- Your own financial goals and investment horizon
Past returns are not a guarantee of future performance. A fund with stellar recent returns may underperform in the next cycle if sectoral momentum fades.
