4 SBI mutual funds to park your lump sum in 2025 with confidence

With the equity landscape shifting at a lightning pace in 2025, investors are inclined to ask: ‘Where do I invest today, and how do I manage risk without compromising returns?’

Indian markets have registered sharp increases over recent quarters on the back of strong corporate earnings, domestic liquidity, and increased participation from retail and institutional investors.

However, this growth momentum has also pushed valuations in several segments to record highs, which means there are doubts about returns from current price levels.

At the same time, global issues —uncertainty about interest rates in developed countries, geopolitical tensions, and tariffs — keep short-term volatility high.

A Good Option for Lump Sum Investment

In this type of market environment, placing a lump sum is more than just money—it takes careful fund selection, risk awareness, and patience. It isn’t just a timing issue; it’s an issue of accuracy.

As opposed to SIPs, where entry timing is tempered, lump sum investments are more prone to fund selection and market timing. Choosing a fund that can weather turbulence and yet produce steady returns assumes paramount importance.

It is here that mutual fund, India’s most experienced fund house, stands out. Leveraging the financial heft of the State Bank of India and over three decades of fund management acumen, SBI MF offers a comprehensive bouquet of schemes in the equity, hybrid, and debt domains.

Some of these funds have delivered strong risk-adjusted returns, backed by wise portfolio strategy and research-driven philosophy.

In this editorial, we have detailed four SBI Mutual Fund schemes well suited for lump sum investment during 2025. They are chosen on the basis of their strong performance, category leadership, and prevailing market dynamics.

Top Performing SBI Mutual Fund Schemes

#1 SBI Contra Fund

SBI Contra Fund presents a distinctive offer to the market with its contrarian investment approach—picking fundamentally good companies that are out of favour at present or undervalued.

In the present market scenario, when valuations in some segments continue to remain high, this fund presents a chance to invest in stocks that could be mispriced because of transient sentiment instead of fundamentals.

As of July 2025, the fund has a 5-year CAGR of approximately 32.89%, demonstrating its potential to provide healthy returns by standing against the crowd when it matters.

With Rs 437.89 billion (bn) AUM, the fund has a portfolio of about 79 stocks with diversified holdings without diluting its conviction.

Among its top holdings are HDFC Bank (8.5%), RIL (6.2%), and ITC (3.5%), among others.

From a sector allocation perspective, the fund has high exposure to banking (19.2%), crude oil (8.6%), and healthcare (7.3%).

What makes the SBI Contra Fund especially useful for today’s lump sum investor is its capability to bring together valuation comfort and high upside potential. The fund has also demonstrated a steady capability to tackle downside risk by steering clear of overhyped stocks during market excess.

#2 SBI Mid Cap Fund

SBI Mid Cap Fund is renowned for its concentrated strategy and disciplined stock selection.

The fund adopts a bottom-up investment approach, going after mid-cap businesses with high earnings visibility, scalability, and sector leadership possibilities.

The fund has consistently outperformed its benchmark, especially during times of economic recovery and sector rotation. Through July 2025, it has produced a 5-year CAGR of about 29.63%, making it one of the best-performing mid-cap stocks.

The fund has an AUM of Rs 232.69 bn and generally carries a tight portfolio of 45–55 stocks, balancing high conviction with sufficient diversification.

Its largest holdings are in CRISIL (4.2%), Sundaram Finance (3.3%), and HDFC Bank (3%), a measure of the fund’s bias towards quality mid-cap businesses well placed in their industries.

Sectorally, healthcare (12.2%), finance (10.8%), and automobile & ancillaries (8.8%) lead the portfolio—sectors consistent with India’s formalisation of the economy, urban consumption growth, and infrastructure thrust.

SBI Mid Cap Fund reconciles growth with valuation restraint, shunning frothy or over-owned stocks even in bull phases.

The ability of the fund to re-allocate sector exposure as per macro changes and earnings cycles has helped it ride the upside while limiting drawdowns in case of corrections.

#3 SBI Large Cap Fund

SBI Large Cap Fund is a reliable choice for the investor who wants stability, quality, and long-term growth from India’s best 100 listed firms.

In an environment of extended valuations in smaller segments and sporadic global volatility, large-cap funds such as this provide a compromise between growth potential and risk management.

In the years since its inception, the fund has shown a steady record of providing risk-adjusted returns, most notably in periods of uncertain or range-bound market cycles.

It has achieved a 5-year CAGR of 19.94% as of July 2025, highlighting its consistency across multiple market cycles.

With an AUM of Rs 539.59 bn, SBI Large Cap Fund generally invests in a diversified basket of 40–50 high-quality stocks with broad sector exposure but conviction in top themes.

The top holdings at present are HDFC Bank (9.5%), RIL (8.1%), and ICICI Bank (7.8%), demonstrating a balanced exposure to India’s corporate giants in energy, banking, and technology.

Sector-wise, the fund is biased towards financial services (26.9%), automobile & ancillaries (8.2%), and crude oil (8.1%), which collectively represent the backbone of India’s long-term growth story.

The fund has also displayed flexibility in slightly raising exposure to defensive sectors in periods of increased volatility, protecting the downside when necessary.

Why SBI Large Cap Fund stands out particularly for lump sum investors in 2025 is that it can provide relative security in volatile markets, even while continuing to capture the structural growth opportunity of India’s blue-chip companies.

#4 SBI Multi-Asset Allocation Fund

With a market fighting to deal with equity valuations, stable debt yields, and the hedge appeal of gold, SBI Multi-Asset Allocation Fund provides a clever way to diversify across asset classes in one portfolio.

This strategic asset allocation is useful in minimising portfolio risk, while still offering participation in assets that grow. The fund has returned a 5-year CAGR of around 15.69% as of July 2025, indicating consistency with minimal drawdowns even during times of market stress.

With an AUM of Rs 89.40 bn, the fund has a diversified portfolio of 50-55 equity shares, fixed income securities, and commodity-linked assets like gold ETFs.

Its highest equity holdings are in Cholamandalam Investment and Finance Company (3.9%), HDFC Bank (2.9%), and RIL (2.9%), whereas the debt side has high-credit quality corporate bonds and government securities.

The fund is presently holding around 65% in equity, 25% in debt, and 10% in gold-linked assets—a structure designed to balance potential returns with downside protection.

The fund manager adopts a tactical stance, rebalancing exposures based on macroeconomic factors, interest rate outlook, and risk sentiment across the world.

For lump sum investors in 2025, it presents a balanced market entry without having to bet on one asset class alone.

Conclusion

Lump sum investing could be a powerful wealth-building tool—if done right.

As cycles of the markets change and valuations become more sensitive to a correction, it’s not just a matter of running after returns anymore—it’s about having holdings that sustain.

SBI Mutual Fund’s range of products are created not for the noise of the current quarter but the substance of the decade to come.

From accessing India’s demographic dividend via mid and large cap investments, to offsetting equity-debt-gold exposure through multi-asset offerings, SBI funds aren’t merely reflecting market trends—they seek to ride out volatility and gain in the long run.

If you’re looking beyond momentum and headlines, and instead aiming to align your money with funds that offer depth, discipline, and direction, SBI Mutual Fund could be one of the reliable partners on your wealth creation journey.

However, do note that no single fund fits all; investing is less about predicting the next outperformer and more about staying invested in well-structured portfolios that reflect your time horizon, risk tolerance, and goals.

Remember, it’s not about picking the perfect fund—it’s about sticking with a purposeful one.

Invest wisely.

Happy investing.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here…

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