When it comes to long-term investments, the SBI Consumption Opportunities Fund has proven to be a consistent wealth creator. Launched in July 1999, this fund has rewarded its investors with significant returns, particularly those who chose the Systematic Investment Plan (SIP) route. Over its 25-year journey, the fund has delivered more than 20% annual returns to SIP investors, solidifying its reputation as a top-performing scheme in the market.
Exceptional SIP Returns for Long-Term Investors
One of the standout aspects of the SBI Consumption Opportunities Fund is its remarkable performance in the SIP category. Investors who have been making monthly SIPs of Rs 5000 since the fund’s inception 25 years ago have seen their investments grow to over Rs 3 crore. Here’s a breakdown of the numbers:
- Total Investment: Rs 15,00,000 (Rs 5000 per month for 25 years)
- Total Value After 25 Years: Rs 3,23,25,321
- Annualized SIP Return Over 25 Years: 20.2%
The fund has shown consistent growth over various timeframes, making it an attractive option for both long-term and medium-term investors.
SIP Performance Over Different Periods
- 10-Year SIP Performance: Investors who invested Rs 10,000 monthly over the past decade have built a corpus of Rs 36,84,676, thanks to an impressive 21.23% annual return.
- 5-Year SIP Performance: Over the last 5 years, the fund has generated a staggering 31.9% annual return for SIP investors. A Rs 10,000 monthly SIP during this period has grown to Rs 13,13,064.
This performance makes the fund a solid choice for those seeking steady returns through SIPs, whether they’re planning for short-, medium, or long-term financial goals.
Strong Returns on Lump Sum Investments
While SIP investments have been exceptionally rewarding, the SBI Consumption Opportunities Fund has also delivered strong returns on one-time lump sum investments. Here’s a glance at its performance:
- 1-Year Return: 45.34%
- 3-Year Annual Return: 27.92%
- 5-Year Annual Return: 25.04%
- 10-Year Annual Return: 17.85%
- 20-Year Annual Return: 20.64%
- Returns Since Launch: 16.59% per annum
The fund’s consistent performance across different time frames demonstrates its ability to navigate various market phases effectively.
Sector and Stock Focus
The SBI Consumption Opportunities Fund primarily focuses on sectors that drive consumer demand, such as technology, fast-moving consumer goods (FMCG), and consumer discretionary. It invests around 96.28% of its corpus in equity and equity-related options, while the remaining 3.72% is held in cash or related instruments.
Some of the major stocks in its portfolio include:
- ITC
- Hindustan Unilever (HUL)
- Bharti Airtel
- Jubilant FoodWorks
- United Breweries
- Colgate-Palmolive
- Britannia Industries
- Page Industries
- Mahindra & Mahindra
These companies are well-established players in their respective industries, contributing to the fund’s robust performance over the years.
Key Fund Details
- Launch Date: July 5, 1999
- Benchmark: NIFTY India Consumption TRI
- Total AUM (August 31, 2024): Rs 2854 crore
- Expense Ratio (August 31, 2024): 1.98%
- Minimum Investment: Rs 5000
- Minimum SIP: Rs 500
The fund has consistently beaten its benchmark, the NIFTY India Consumption TRI, making it a reliable option for investors seeking long-term wealth creation.
