SBI Contra Fund: Multibagger Mutual Fund Scheme:A scheme of SBI Mutual Fund has done wonders in converting investors’ capital of Rs 1 lakh into Rs 1 crore. Not only this, this scheme has doubled the investors’ money in 3 years and almost 4 times in 5 years. The name of this very successful scheme of the country’s largest mutual fund house is SBI Contra Fund, which is an open-ended equity scheme. The special thing about this scheme is that for investment, the strategy of moving contrary to the market trend is followed, which is called contrarian investment strategy.
What is the meaning of contrarian strategy?
Contrarian investment strategy means that the fund manager of the scheme invests in those shares which, despite having strong fundamentals, are performing poorly in the market. This strategy gives them an opportunity to earn huge profits in the long run by buying good shares at low prices. For this, stocks are selected on the basis of top-down and bottom-up approach. At least 65% of SBI Contra Fund is invested in shares of such companies. The remaining 35% of the fund’s corpus can be invested in other shares, debt instruments or money market instruments. This scheme tries to utilize market movements correctly to give good returns to investors in the long run.
Also read: What is the meaning of Trigger SIP, how does this strategy work, for whom is this method of investment better?
Past Performance of SBI Contra Fund
The allotment of units under SBI Contra Fund was done on July 5, 1999. That means this fund has completed 25 years. This fund has performed very well in these 25 years. The average annual return (CAGR) of this fund since its inception has been 20.1%. Due to this return, this fund has been able to convert an investment of Rs 1 lakh into Rs 1 crore.
SBI Contra Fund Returns (CAGR)
-In 1 year: 43.89%
-In 3 years: 27.42%
-In 5 years: 31.65%
-From beginning till now (in 25 years): 20.1%
Performance of the scheme’s benchmark index BSE 500 TRI
-In 1 year: 40.85%
-In 3 years: 18.39%
-In 5 years: 22.38%
-From beginning to now: 16.28%
The above data shows that SBI Contra Fund has significantly outperformed its benchmark index over every period, indicating a strong investment strategy of the scheme.
Also read: FD vs Hybrid Mutual Funds: Want a better option than FD with less risk? These 11 conservative hybrid funds gave up to 19% returns in 1 year
This is how Rs 1 lakh became Rs 1 crore
Fund value of Rs 1 lakh invested in SBI Contra Fund:
-In 1 year: Rs 1,44,180
-In 3 years: Rs 2,07,020
-In 5 years: Rs 3,96,100
-In 25 years (from inception to now): Rs 1,02,03,280 (Rs 1.02 crore)
It is clear from these figures that SBI Contra Fund has converted the investment of Rs 1 lakh invested at the time of launch into Rs 1,02,03,280 (Rs 1.02 crore). Not only this, this fund has also doubled the investors’ money in 3 years and almost 4 times in 5 years.
Also read: HDFC MF’s scheme has been tried for 30 years, made Rs 2.12 crore from SIP of 2000, lump sum investment became 76 times
Important things related to SBI Contra Fund
-Minimum lump sum investment: Rs 5,000 and thereafter in multiples of Re 1.
-Minimum monthly SIP: Rs 500.
-Risk Level: Very High Risk.
-Date of allotment in the scheme: 5 July 1999.
-Asset Under Management (AUM): Rs 41,416.6 crore (as on 30 September 2024).
-Expense Ratio (Regular Plan): 1.51% (till 30 September 2024).
-Expense Ratio (Direct Plan): 0.58% (till 30 September 2024).
-Exit Load: 1% on exit within 1 year, no exit load after 1 year.
Also read: Top 6 equity funds of ICICI Prudential, returns ranging from 53% to 67% in 1 year, best scheme doubled money in 2 years
Top Holdings (as of September 30, 2024)
-
HDFC BANK LTD. :5.33%
-
RELIANCE INDUSTRIES LTD. :3.39%
-
GAIL (INDIA) LTD. :2.39%
-
KOTAK MAHINDRA BANK LTD. :2.3%
-
WHIRLPOOL OF INDIA LTD. : 2.24 %
-
Cash, Cash Equivalents and Others: 3.53%
Sector Allocation of Fund
-Financial Services: 20.96%
-Oil, gas and consumer fuel: 9.66%
-Information Technology: 9.03%
-Healthcare: 7.21%
-Sovereign (government bonds): 5.79%
-FMCG (Fast Moving Consumer Goods): 5.33%
fund manager
1.Dinesh Balachandran: With 22 years of experience, has been managing this fund since May 2018.
2.Pradeep Kesavan: Joined SBI Funds Management from July 2021 and is managing this fund from December 2023.
Why invest in SBI Contra Fund?
Investing in this fund is suitable for investors who want to invest for long-term capital growth and intend to achieve maximum returns through the fund’s contrarian investment strategy.
– This fund is for those investors who are ready to take more risk and have the ability to tolerate market turmoil.
investing wiselydo
SBI Contra Fund has delivered exceptional returns to investors over a long period of time through its contrarian investment strategy. Its record of converting Rs 1 lakh into Rs 1 crore in 25 years makes it an attractive investment option. However, the risk level of this fund is very high, hence only those investors who have the financial capacity to withstand the ups and downs of the market should consider investing in it.
(Disclaimer: The purpose of this article is only to provide information, not to advise investment in any fund. Investments made in equity mutual funds are directly affected by the ups and downs of the stock market. Any investment decision should be taken by your investment advisor. Do it only after taking advice from.)