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.
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.
| 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 |
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:
This method allows buyers gain while the market eventually recovers.
However, this calls for:
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.)
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.
| 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.
The fund invests throughout:
| Sector | Allocation |
|---|---|
| Financial Services | 20%+ |
| IT & Technology | 10%+ |
| Healthcare | 8%+ |
| Infrastructure | 7%+ |
| Consumption | 10%+ |
| Industrials | 12%+ |
| 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.
This fund is ideal for buyers who:
Investing in undervalued companies permits large upside capacity.
SBI Mutual Fund’s track report guarantees reliable fund management.
Reduces risk via investing throughout sectors.
Historically outperformed benchmarks over the long term.
Investors can start with as low as ₹500 via SIP.
Contra finances carry very excessive threat due to the fact:
Investors have to apprehend this before making an investment.
| Feature | Direct Plan | Regular Plan |
|---|---|---|
| Expense Ratio | Lower | Higher |
| Returns | Higher | Slightly Lower |
| Suitable for | Experienced Investors | Beginners |
| Availability | AMC Website | Through Agents / Platforms |
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:
| 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.
Yes, SBI Contra Fund continues to be one of the first-rate picks for 2025 because of:
If you’re planning lengthy-term wealth advent, this fund is a stable contender.
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.
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