This SBI Equity Mutual Fund Outperforms To Give 75% returns, SIP With Rs 500 Only

If you do a SIP of Rs 500 only in SBI Contra Fund, direct growth plan you earn a return of 75.28% in five years. For a total investment of Rs 30,000, you earn a corpus of Rs 52,585. While a monthly SIP investment of Rs 500 in this fund for 3 years will provide you with a corpus of Rs 26,651 for total investment of Rs 18,000, a gain of 48.06%

What is SBI Contra Fund?

SBI Contra Fund is an equity mutual fund from the category of contra funds. As a contra mutual fund it invests against the existing market trends and choose stocks which are not doing well currently. As a contra fund, the fund manager of such a scheme has made bets on stocks with contrarian view when the investors have shunned it and also there was a demand.

Performance of SBI Contra Fund

SBI Contra Fund has managed to outperform even its two peers in in last three and five years.

	SBI Contra Fund	Kotak India EQ Contra Fund	Invesco India Contra Fund
6-months	3.13%	2.22%	-3.63%
YTD	-1.71%	-3.52%	-5.79%
1-year	14.99%	6.42%	2.36%
3-year	49.25%	35.87%	33.39%
5-year	16.05%	14.40%	12.53%
7-year	16.13%	16.39%	16.00%
10-year	15.57%	15.68%	18.39%

The scheme is a very good performer amongst its peers as per Crisil as it has been given a 5-star by rating agency

Portfolio of SBI Contra Fund

The portfolio of SBI Contra Fund is heavily skewed towards equity holdings of 86.23%, with some exposure to debt (8.62%) and cash (5.15%). The scheme has an asset size of Rs 8,340.65 crore. The equity scheme holds 70 stocks in its portfolio, and its top 10 stocks comprise of 26.51% weight in the equity portfolio. It holds heavyweights like GAIL India, ICICI Bank, HDFC Bank, Tech Mahindra and a small cap Equitas Small Finance Bank as its top 5 stocks. Its top three sectors combined constitute approximately 46.37% weight in the overall portfolio, out of total 16 sectors.

Disclaimer

Mutual fund investments are subject to market risk. The above-mentioned information is purely informational and doesn't guarantee any return. Greynium Information Technologies and the Author are not liable for any losses caused as a result of a decision based on the article.