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SBI Contra Fund – Returns, NAV, Performance, Risk, Benefits & Complete Guide

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

FeatureDetails
Fund NameSBI Contra Fund
Fund ManagerR. Srinivasan & Team
Fund CategoryContra Fund (Equity – Thematic)
Launch Year2005
Minimum SIP₹500 onwards
Minimum Lumpsum₹5,000
Risk LevelVery High Risk
BenchmarkS&P BSE 500 TRI
Investment Horizon5–7 Years
Expense RatioVaries (Regular/Direct)
Fund HouseSBI 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 PlanLatest 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:

DurationReturns (Approx.)
1 Year30%–35%
3 Years22%–25% CAGR
5 Years18%–20% CAGR
Since Inception15%+ CAGR

This performance suggests that the fund has continually introduced sturdy returns in the end.

SBI Contra Fund – SIP Performance Example

SIP DurationMonthly SIPTotal InvestmentCurrent ValueGrowth
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.)

SectorAllocation
Financial Services20%+
IT & Technology10%+
Healthcare8%+
Infrastructure7%+
Consumption10%+
Industrials12%+

Top Holdings of SBI Contra Fund

CompanyAllocation %
HDFC Bank6%
Infosys5%
Reliance Industries4%
SBI4%
ICICI Bank3.5%
L&T3%
Tata Motors2.8%

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

FeatureDirect PlanRegular Plan
Expense RatioLowerHigher
ReturnsHigherSlightly Lower
Suitable forExperienced InvestorsBeginners
AvailabilityAMC WebsiteThrough 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 Name5-Year ReturnsRisk Level
SBI Contra Fund18–20% CAGRVery High
Kotak India EQ Contra Fund15–17% CAGRVery High
Invesco India Contra Fund13–16% CAGRHigh

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.

Prem Singh

My world revolves around words. Sometimes they take the form,of shayari sometimes as good thoughts – I express the voice of my heart to you. Writing for me is not an art or a hobby, but a need of my soul. My constant effort is that my shayari and thoughts touch your heart, give you a new direction, and bring a little positivity and hope into your life. 'In every story of life, there is always a hidden lesson, all you need is to recognize it.' -Prem Singh"

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