SBI Contra Fund
Investing in mutual price range has become one of the maximum powerful approaches to develop wealth in India, specifically for lengthy-term traders seeking to beat inflation and construct a diversified portfolio. Among the numerous categories of mutual price range to be had these days, Contra Funds keep a unique position. These budget follow a contrarian strategy—investing in stocks which are presently undervalued but preserve robust long-term capability.
One of the maximum famous picks on this category is the SBI Contra Fund, controlled via SBI Mutual Fund, one among India’s most trusted asset management corporations. Launched with the goal of figuring out omitted or undervalued stocks, the fund targets to provide advanced lengthy-term returns by way of having a bet towards the prevailing market sentiment.
This blog publish offers an in-depth analysis of the SBI Contra Fund, protecting its NAV, returns, performance, dangers, blessings, portfolio, SIP investment, functions, and much extra. Whether you are a newbie or an skilled investor, this guide will assist you make a decision whether this fund is appropriate for your economic desires.
What is SBI Contra Fund?
The SBI Contra Fund is an equity mutual fund that follows a contrarian investment strategy. In simple phrases, it invests in agencies which are presently out of fashion in the marketplace but have sturdy basics and increase potential. The concept is to shop for undervalued stocks at decrease charges and benefit once the marketplace acknowledges their really worth.
This technique calls for patience, studies, and information—characteristics that SBI Mutual Fund brings to the table via experienced fund managers.
Key Highlights of SBI Contra Fund
- Follows contrarian investing
- Invests in undervalued or omitted sectors
- Suitable for lengthy-term wealth introduction
- Higher hazard but capacity for better returns
- Ideal for investors with at least 5–7 years horizon
SBI Contra Fund – Quick Overview Table
| Feature | Details |
|---|---|
| Fund Name | SBI Contra Fund |
| Fund Manager | R. Srinivasan & Team |
| Fund Category | Contra Fund (Equity – Thematic) |
| Launch Year | 2005 |
| Minimum SIP | ₹500 onwards |
| Minimum Lumpsum | ₹5,000 |
| Risk Level | Very High Risk |
| Benchmark | S&P BSE 500 TRI |
| Investment Horizon | 5–7 Years |
| Expense Ratio | Varies (Regular/Direct) |
| Fund House | SBI Mutual Fund |
Understanding the Contra Investment Strategy
Contra making an investment is primarily based on a simple principle:
“Buy when others are frightened, and preserve till the price emerges.”
The fund manager identifies shares which might be:
- Undervalued
- Ignored by way of the marketplace
- Currently underperforming
- Temporarily out of style due to market conditions
This method allows buyers gain while the market eventually recovers.
However, this calls for:
- High staying power
- Long-time period view
- Ability to face up to volatility
SBI Contra Fund NAV (Updated 2025)
Below is the present day indicative NAV statistics for the scheme.
| Fund Plan | Latest NAV (Approx.) |
|---|---|
| Direct Plan – Growth | ₹200+ |
| Regular Plan – Growth | ₹150+ |
| Direct Plan – IDCW | ₹120+ |
| Regular Plan – IDCW | ₹105+ |
(NAV values are approximate and for informational use in this text.)
SBI Contra Fund Returns Performance
Here is the fund’s overall performance across diverse time horizons:
| Duration | Returns (Approx.) |
|---|---|
| 1 Year | 30%–35% |
| 3 Years | 22%–25% CAGR |
| 5 Years | 18%–20% CAGR |
| Since Inception | 15%+ CAGR |
This performance suggests that the fund has continually introduced sturdy returns in the end.
SBI Contra Fund – SIP Performance Example
| SIP Duration | Monthly SIP | Total Investment | Current Value | Growth |
|---|---|---|---|---|
| 5 Years | ₹5,000 | ₹3,00,000 | ₹4,80,000+ | High |
| 7 Years | ₹5,000 | ₹4,20,000 | ₹7,90,000+ | High |
| 10 Years | ₹5,000 | ₹6,00,000 | ₹13,50,000+ | Very High |
This suggests why long-time period SIPs in contra price range can generate mind-blowing wealth.
Portfolio Allocation of SBI Contra Fund
The fund invests throughout:
- Undervalued massive-cap shares
- Mid-cap companies with excessive increase capacity
- Select small-cap possibilities
- Value-based totally topics
- Cyclical sectors
Sector Allocation (Approx.)
| Sector | Allocation |
|---|---|
| Financial Services | 20%+ |
| IT & Technology | 10%+ |
| Healthcare | 8%+ |
| Infrastructure | 7%+ |
| Consumption | 10%+ |
| Industrials | 12%+ |
Top Holdings of SBI Contra Fund
| Company | Allocation % |
|---|---|
| HDFC Bank | 6% |
| Infosys | 5% |
| Reliance Industries | 4% |
| SBI | 4% |
| ICICI Bank | 3.5% |
| L&T | 3% |
| Tata Motors | 2.8% |
These strong organizations help the fund hold balanced lengthy-time period boom ability.
Who Should Invest in SBI Contra Fund?
This fund is ideal for buyers who:
- Have an extended-term horizon of 5–10 years
- Can cope with excessive volatility
- Want to invest in undervalued companies
- Seek higher-than-common returns
- Want diversification based totally on a contrarian method
Not appropriate for:
- Short-term investors
- Low-danger buyers
- Those seeking out guaranteed returns
Advantages of SBI Contra Fund
1. Long-term wealth advent
Investing in undervalued companies permits large upside capacity.
2. Managed through skilled experts
SBI Mutual Fund’s track report guarantees reliable fund management.
3. Diversified portfolio
Reduces risk via investing throughout sectors.
4. High return ability
Historically outperformed benchmarks over the long term.
5. Suitable for SIP & lumpsum
Investors can start with as low as ₹500 via SIP.
Risks Associated with SBI Contra Fund
Contra finances carry very excessive threat due to the fact:
- They put money into out-of-prefer stocks
- Market restoration might also take time
- High volatility in the course of market downturns
- Requires staying power to peer returns
Investors have to apprehend this before making an investment.
SBI Contra Fund Direct vs Regular Plan
| Feature | Direct Plan | Regular Plan |
|---|---|---|
| Expense Ratio | Lower | Higher |
| Returns | Higher | Slightly Lower |
| Suitable for | Experienced Investors | Beginners |
| Availability | AMC Website | Through Agents / Platforms |
SBI Contra Fund Lumpsum vs SIP
SIP Benefits:
- Rupee fee averaging
- Disciplined investing
- Lower market timing danger
Lumpsum Benefits:
- Higher returns if invested during marketplace dips
- Suitable for experienced investors
How to Invest in SBI Contra Fund
You can invest the usage of:
✔ SBI Mutual Fund Website
✔ Apps like Groww, Paytm Money, Zerodha Coin
✔ Banks & Financial Advisors
✔ Online MF Platforms
Documents needed:
- PAN
- Aadhaar
- Bank Account
- KYC
SBI Contra Fund vs Other Contra Funds
| Fund Name | 5-Year Returns | Risk Level |
|---|---|---|
| SBI Contra Fund | 18–20% CAGR | Very High |
| Kotak India EQ Contra Fund | 15–17% CAGR | Very High |
| Invesco India Contra Fund | 13–16% CAGR | High |
SBI’s fund stands out due to constant long-term performance.
Is SBI Contra Fund Good for 2025?
Yes, SBI Contra Fund continues to be one of the first-rate picks for 2025 because of:
- Strong historical returns
- Experienced fund managers
- Balanced contrarian method
- Well-various portfolio
- Lower valuation opportunities in more than one sectors
If you’re planning lengthy-term wealth advent, this fund is a stable contender.
Conclusion
The SBI Contra Fund is a powerful funding option for buyers who trust in long-time period investing and can handle market volatility. With its contrarian investment method, the fund ambitions to capitalize on undervalued possibilities that can generate large returns over time.
For buyers with a horizon of 5–10 years, this fund has robust ability to outperform traditional varied equity budget. However, know-how its risks is equally important.
