SBI Contra Fund has completed 25 years and is India’s first contra-oriented mutual fund scheme. Since its inception in July 1999, the fund has delivered a return of 19.99% to its investors.
To mark the Silver
First, we need to understand what a contra fund is. Contra-oriented funds invest in companies that are performing contrary to the market
SBI Contra Fund Vs BSE 500 TRI
SBI Contra Fund has provided excellent returns to its investors, achieving an annualised growth rate of 19.99% since July 1999. In comparison, its benchmark, BSE 500
Also read: Mutual Fund Calculator: Starting Rs 3000 SIP at 30? Here’s how much you will get at retirement
SIP of Rs 10,000 turned into Rs 7.19 crore in 25 years
If someone had been doing a SIP of Rs 10,000 every month since the fund’s launch, their total amount would have reached Rs 7.19 crore by June 30. This would result in an XIRR return of 20.84%.
XIRR stands for Extended Internal Rate of Return. It is a method used to calculate returns on investments with multiple transactions occurring at different times. This differs from the Compound Annual Growth Rate (CAGR), which applies only to investments with a single cash flow.
SBI Contra Fund has delivered SIP returns of 17.94% over 15 years, 21.84% over 10 years, and 35.62% over 5 years.
SBI Contra Fund has delivered 34.25% SIP returns in three years and 48.68% returns in one year. In comparison, the benchmark BSE 500 TRI provided returns of 15.86% over 15 years, 17.73% over 10 years, 24.82% over five years, 25.40% over three years, and 43.02% over one year.
Also read: Quant Mutual Fund: Top 5 schemes with up to 75% returns in 1 year
How much would an investment of Rs 1 lakh be?
If an investor had invested Rs 1 lakh in lump sum at the time of launch of SBI Contra Fund, his investment would have increased to Rs 95.3 lakh by June 28. As of June 30, 2024, this scheme had assets worth Rs 34,366 crore. It has more than 20.5 lakh investors.
SBI Contra Fund is managed by Dinesh Balachandran and Pradeep Kesavan. This scheme is suitable for investors who want long-term capital appreciation. Also, those who wish to invest in a diversified portfolio of equity and equity-related securities under a contrarian investment strategy.