Which SBI Mutual Fund is Good For Moderate Risk Takers?

You wouldn’t have missed Mutual Fund advertisement while you are enjoying your favourite show on Indian television. It obviously showcases how awesome mutual funds are, which they are, but towards the end they say something about the risk involved with mutual funds. Yes, the iterative disclaimer - Mutual Fund investments are subject to market risk. Please read the documents carefully before investing. You might haven’t paid any heed to this while listening or seeing it on radio or television. But risk is a crucial factor in mutual fund investment.

Every Mutual Fund investment has risk associated with it. The reason being mutual fund schemes invest in equity, debt, bonds and government securities, whose value keeps on fluctuating. Thus, it is important to evaluate your risk capability and then invest in those schemes only which is in line with your risk taking capabilities. So, if you are person with medium risk appetite and have a long term financial objective in mind, there some SBI Mutual Funds that will fit your agenda. Let’s check out SBI Mutual Funds which provides good returns to moderate risk takers.

SBI Bluechip Fund

The investment objective of this SBI Mutual Fund is to provide investors with long-term capital growth through an active management of investments in a diversified basket of large cap equity. SBI Bluechip Mutual Fund invest in the stocks of bluechip companies. These companies have a good equity and are market leaders in their industry, which provides stability to the portfolio. Thus, the risk is less as there won’t be extreme daily fluctuations in the stock prices as compared to stocks of mid-cap and small-cap companies. Superb balance sheets, good track record of dividend repayments, stable cash flows, etc. are some of the factors that stabilizes the prices of bluechip stocks.

To avail the fortunes of good returns, an investor should invest in the fund for at least 5 years. This fund only promises good returns if you stay invested in it for a long term because it focuses on thematic stocks that will only do well in the long term. One more benefit of the fund is that it has a low expense ratio. Where other funds in the same category have given a return of 10 to 11%, the SBI Bluechip Fund has given a 13% to 14% return in the last 5 years.

SBI Magnum Multicap Fund:

This is the best fund for investors who are willing to take moderate risk. The risk level is moderate due to the diversified portfolio instead of a concentrated portfolio. SBI Magnum Multicap Fund invests 50-90% in large cap stocks, 10% to 40% in mid cap socks and the rest 10% in small cap stocks. This balances the risk profile. Again, to witness outstanding returns you need to keep your money invested in the fund for a long term, a minimum of 5 years. This SBI Mutual Fund scheme has delivered a 3-year of 12% and a 5-year return of 20%. Mr. Anup Upadhyay, the fund manager, with his expertise has invested in themes that will promise good returns in the long run. The reason for its good returns is the investment in the stocks of large cap and medium cap companies. And, a diversified investment keeps the risk factor low.

These were two SBI Mutual Fund Options that we would recommend to investors who want are looking out for moderate risk avenues.