This SBI MF scheme turned Rs 1 lakh to Rs 27 lakh in 19 years. Do you own?
SBI Focused Equity Fund, which has recently completed its 19 years of operations, has delivered multibagger returns to investors with a compounded annual growth rate (CAGR) of 18.91% since its inception.
Accordingly, an investment of Rs 1 lakh during the NFO of the scheme would have grown to around Rs 26.88 lakh.
The fund is an open-ended equity MF scheme that aims to generate long-term capital appreciation by investing in a concentrated portfolio of high-quality stocks allowing for in-depth research and active management to capitalize on growth opportunities.
Investors with a long-term horizon and higher risk appetite can potentially benefit from the compounding of returns over time.
An SIP in the scheme of over 10 years would have delivered a CAGR of 15.66% to investors vis-a-vis 15.3% of its benchmark (S&P BSE 500 TRI). If an investor had invested Rs 10,000 every month since inception, the investment of Rs 12 lakh would have swelled to Rs 26.93 lakh.
Similarly, an SIP over a 15-year period would have delivered a CAGR of 17.42%.
If an investor had put Rs 10,000 every month since inception, the investment of Rs 18 lakh would have turned to Rs 75.18 lakh.
In comparison, S&P BSE Sensex has delivered 14.57% and 13.91% over 10-year and 15-year periods, respectively.
The fund has been managed by R Srinivasan, CIO – Equity since May 2009. The AUM of the fund is Rs 29,430 crore, as of August 31, 2023.
The portfolio is diversified across only 22 companies in both domestic and foreign securities.
