/financial-express-hindi/media/media_files/NHrUZmetoXvJQk1oDZNT.jpg "This scheme of SBI MF is amazing, make 7 crores with just 10,000 rupees monthly SIP!")
SBI Contra Fund gives huge returns in last 25 years : The country’s first contra mutual fund scheme, SBI Contra Fund, completed 25 years of its launch on Friday. During this journey of two and a half decades, this scheme has given an average annual return of 20.05 percent. Whereas during the same period, the average annual return of this scheme’s benchmark BSE 500 TRA (BSE 500 Total Return Index) has been 16.12 percent. You can guess the return of this scheme from the fact that a monthly SIP of just Rs 10,000 has the potential to make investors earn crores. The allotment of units under SBI Contra Fund was done on July 5, 1999.
1 lakh made into 95 lakh
The annual returns that SBI Contra Fund has given since its launch mean that if someone had invested a lump sum of Rs 1 lakh in the scheme when it was launched, the total value of his investment would have been more than Rs 95 lakh now, i.e. after 25 years. The regular plan of this scheme has given a point-to-point CAGR return of 28.47% in the last 5 years, 29.63% in 3 years and 47.91% in 1 year. While during the same period, the benchmark of the scheme, BSE 500 TRI, has given a return of 19.95%, 19.97% and 38.40% respectively.
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7 crore fund from SIP of 10 thousand
On the other hand, if someone had invested Rs 10,000 every month in SBI Contra Fund through Systematic Investment Plan (SIP) from the very beginning, the value of this investment would have been Rs 7.20 crore on June 30, 2024. That is, the total investment of Rs 30 lakh made during these years would have given an annual return (CAGR) of 20.84%. If we look at the SIP returns of this scheme of SBI Mutual Fund, it has given a tremendous return of 17.94% in 15 years, 21.84% in 10 years, 35.62% in 5 years, 34.25% in 3 years and 48.68% in 1 year. Whereas during the same period, its benchmark BSE 500 TRI has given an annual return of 15.86% in 15 years, 17.73% in 10 years, 24.82% in 5 years, 25.40% in 3 years and 43.02% in 1 year. As on July 4, 2024, the asset under management (AUM) of the scheme was Rs 35,033.56 crore.
|
SIP Returns (CAGR) |
1 year |
3 year |
5 years |
10 years |
15 years |
From launch to date (since July 5, 1999) |
|
SBI Contra Fund |
48.68% |
34.25% |
35.62% |
21.84% |
17.94% |
20.84% |
|
BSE 500 TRI |
43.02% |
25.40% |
24.82% |
17.73% |
15.86% |
16.29% |
|
BSE Sensex TRI |
28.85% |
18.66% |
19.54% |
15.64% |
14.29% |
15.30% |
(Source: SBI Mutual Fund)
Also read: What will be the returns in the stock market in the next 3 years? What is the estimate of Franklin Templeton’s CIO
Past performance is not a guarantee of returns
We have given the data related to SBI Contra Fund here for information only. This is an equity fund, whose returns are greatly affected by market fluctuations. In terms of risk, this scheme is placed in a very high risk category. Therefore, before taking any decision, investors should keep in mind that past returns in mutual funds do not guarantee similar benefits in the future. Before taking investment decisions, investors should keep in mind their personal financial goals and risk-taking capacity and seek the advice of a financial advisor.
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