A ₹10,000 SIP is the formula to become a millionaire! SBI funds yield up to 17% returns

If you're looking to invest in mutual funds for the long term, SBI Mutual Funds is a trusted name. SBI funds are among India's oldest equity funds, having experienced not only market booms but also major crashes and prolonged recessions. 

With consistent investment over the long term, these funds have been shown to generate returns of up to crores for investors through compounding.

Recently, a list of SBI's top 5 funds was compiled based on their 20-year SIP performance. These funds have generated returns ranging from 16.06% to 17.57%. 

This means that if someone had done a monthly SIP of ₹10,000 for 20 years, this amount could have been worth between ₹1.51 crore and ₹1.83 crore today.

These mutual funds of SBI gave better returns

The top performer was the SBI Consumption Opportunities Fund, which delivered a 20-year return of 17.57%. This fund focuses on consumption sectors such as FMCG, auto, paints, and telecom. These sectors have consistently performed well due to rising incomes and changing lifestyles in India.

SBI Technology Opportunities Fund is in second place. This fund benefited from the boom in the IT and digital sectors. Investments in leading stocks like Infosys and Bharti Airtel strengthened its position.

SBI Focused Fund is also interesting, investing in a small number of companies with high conviction. Holdings in stocks like Alphabet (Google), HDFC Bank, and SBI strengthen its portfolio.

SBI Healthcare Opportunities Fund delivered a return of 16.08%. The pharma and healthcare sectors have performed steadily over the long term, especially after the pandemic boosted demand for these sectors. 

SBI Midcap Fund invests in midcap companies. While the midcap sector is highly volatile, it has delivered excellent returns to investors over the long term.

Compounding will create a large fund

Such a substantial return demonstrates what SIP and compounding can do. The real game lies in staying invested, both during market downturns and upturns. 

However, keep in mind that past returns are no guarantee of future returns. Therefore, don't invest based solely on returns. If you want to plan, choose funds based on risk, investment horizon, and goals. Overall, these SBI funds prove that disciplined long-term investing can turn small monthly contributions into crores.