This Mutual Fund Scheme Takes The Crown In FY25 With Multibagger Returns

The financial year 2025 has turned out to be a remarkable period for mutual fund investors, with several schemes delivering eye-catching returns despite market fluctuations. Among the performers, one particular scheme has risen to the top, earning the reputation of being the top multibagger of the year. While Mirae Asset Hang Seng TECH ETF FoF stood out with a staggering 102.63% return, several schemes from SBI Mutual Fund also delivered commendable performances, offering investors attractive opportunities through both lumpsum and SIP investments.

This article explores how these schemes achieved such impressive returns, examines the power of SIP investments, and provides guidance on how investors can use systematic investments to build long-term wealth.

Overview of mutual fund performance in FY25

FY25 saw mutual fund schemes across various categories—particularly thematic and sectoral funds—generate strong returns. The technology sector rebounded sharply, lifting related funds to the top of the performance charts. The Mirae Asset Hang Seng TECH ETF FoF dominated the headlines by more than doubling investor wealth over the year.

However, SBI Mutual Fund, one of India’s most trusted and widely followed asset managers, also delivered robust gains across several schemes. Notably, the SBI Technology Opportunities Fund posted approximately 12.47% returns, while the SBI Focused Equity Fund and SBI BlueChip Fund delivered returns of around 10.32% and 7.14%, respectively, over the same period.

The significance of sectoral and thematic funds

Sectoral and thematic funds focus on specific industries or market trends, such as technology, healthcare, infrastructure, or consumption. These funds can offer multibagger returns during favourable cycles but tend to carry higher risks compared to diversified equity funds.

In FY25, technology-focused funds surged due to strong global recovery in the tech space, increased investor confidence, and a sharp rebound in Chinese technology stocks. Investors who entered early and stayed disciplined were well-positioned to benefit from this upswing.

Why SIPs matter in wealth creation

Systematic Investment Plans (SIPs) have emerged as one of the most popular investment strategies for retail investors in India. An SIP allows investors to put a fixed amount regularly into a mutual fund scheme, helping them accumulate wealth over time without worrying about timing the market.

The benefits of SIPs include:

• Rupee cost averaging: You buy more units when prices are low and fewer when prices are high, reducing the average cost per unit.
• Disciplined investing: Monthly contributions ensure regular saving and investing habits.
• Compounding growth: Earnings are reinvested, allowing your money to grow exponentially over the long term.
• Flexibility: You can increase, decrease, pause, or stop SIPs as per your financial situation.

SBI Mutual Fund’s role in investor portfolios

SBI Mutual Fund is among India’s largest and most respected asset management companies, offering a wide range of schemes across equity, debt, and hybrid categories. Investors looking for reliable wealth creation opportunities often turn to SBI schemes due to the company’s reputation, long-standing market presence, and solid track record.

Some notable SBI Mutual Fund schemes that have performed well in recent times include:

• SBI Technology Opportunities Fund: Focused on the growing technology sector, this scheme is designed for investors with higher risk appetite seeking long-term capital appreciation.
• SBI Focused Equity Fund: This fund invests in a concentrated portfolio of high-conviction stocks, aiming to deliver strong returns by focusing on select opportunities.
• SBI BlueChip Fund: Ideal for conservative investors, this scheme targets large, well-established companies with stable growth profiles.

SIP projections with a mutual fund calculator

A mutual fund return calculator is a practical tool for estimating how much wealth you can create through SIPs over different time horizons. It calculates the final corpus based on your monthly investment, expected annual returns, and tenure.

For example, consider an SIP of Rs. 10,000 per month with an assumed annual return of 12%:

• Over 5 years, you would invest Rs. 6 lakh, which could grow to around Rs. 8.24 lakh.
• Over 10 years, the total investment of Rs. 12 lakh could grow to approximately Rs. 23 lakh.
• Over 20 years, investing Rs. 24 lakh might grow to nearly Rs. 76 lakh, showcasing the exponential effect of long-term compounding.

Using a mutual fund calculator helps investors plan more effectively, adjusting inputs like SIP amount, duration, or expected return to align with specific financial goals.

How to start investing in SBI Mutual Fund SIPs

Starting an SIP with SBI Mutual Fund is straightforward and can be done online or through authorised distributors. Here are the steps:

1. Define your goal: Determine what you are saving for—retirement, education, buying a house, or wealth accumulation.
2. Select a suitable fund: Based on your risk appetite, choose from SBI’s wide range of equity, debt, or hybrid schemes.
3. Use a mutual fund calculator: Estimate how much you need to invest monthly to achieve your target corpus.
4. Complete KYC: Ensure your Know Your Customer (KYC) formalities are completed.
5. Set up SIP: Choose the monthly SIP amount, select the date, and link your bank account for auto-debit.
6. Monitor regularly: Review the performance of your SIP periodically and adjust as your financial situation changes.

Factors to consider when investing in multibagger funds

While multibagger returns are attractive, it is essential to keep in mind the associated risks:

• Volatility: Sectoral funds, like technology funds, can fluctuate significantly based on market trends, regulation, and global events.
• Timing: High-growth funds often perform cyclically, so entering at the right phase matters.
• Diversification: Avoid putting all your money into one fund or sector; diversify across asset classes to manage risk.
• Long-term horizon: Stay invested for at least five to seven years in equity funds to ride out short-term volatility.

Lessons from FY25

FY25 highlighted the importance of staying informed and investing in sectors with favourable growth prospects. Investors who participated in the technology boom, either through SIP or lumpsum investments, reaped significant rewards.

However, past performance does not guarantee future results. Instead of chasing short-term returns, investors are advised to build a balanced portfolio aligned to their goals, time horizon, and risk profile. SIPs in diversified schemes like those offered by SBI Mutual Fund can help achieve steady, long-term wealth creation.

Final thoughts

The financial year 2025 will be remembered as a year when certain mutual fund schemes, particularly technology-focused ones, delivered multibagger returns and significantly outperformed the broader market. While the Mirae Asset Hang Seng TECH ETF FoF topped the charts, SBI Mutual Fund schemes also provided commendable gains, reinforcing the value of consistent investing through SIPs.

By leveraging tools like a mutual fund calculator, selecting suitable SBI Mutual Fund schemes, and following a disciplined SIP approach, investors can enhance their chances of building substantial wealth over time. As always, aligning your investments with your financial objectives and risk tolerance remains the cornerstone of successful investing.