SBI Contra Fund: Overview, Performance, Portfolio, Returns

SBI Contra Fund: Overview, Performance, Portfolio, Returns

SBI Contra Fund is a diversified equity mutual fund offered by SBI Mutual Fund, one of the leading asset management companies in India.

The fund’s objective is to generate long-term capital growth by investing in undervalued stocks across various sectors and market capitalizations.

SBI Contra Fund Investment Strategy:

The SBI Contra Fund follows a contrarian investment approach, where the fund manager invests in stocks that are currently undervalued or out of favor with the market.

This investment strategy allows the fund to identify stocks that have the potential to deliver higher returns in the long run.

The fund invests in companies across various sectors, market capitalizations, and geographies, with a preference for companies with a strong competitive advantage and growth potential.

Portfolio Composition:

The fund’s portfolio is diversified across sectors, with a significant allocation to the banking and financial services sector.

As of March 31, 2021, the top five sectors in the portfolio were Financial Services (27.4%), Energy (14.6%), Healthcare (11.2%), Consumer Goods (10.9%), and Technology (8.6%).

The fund’s top holdings include ICICI Bank, Axis Bank, Reliance Industries, Bharti Airtel, and State Bank of India.

Performance:

The SBI Contra Fund has delivered strong returns over the long term, outperforming its benchmark Nifty 500 index.

As of March 31, 2021, the fund has delivered a 3-year annualized return of 15.43%, 5-year annualized return of 14.13%, and a 10-year annualized return of 13.26%.

The fund’s performance has been consistent, with a relatively low volatility and downside protection during market corrections.

Investor Suitability:

The SBI Contra Fund is suitable for investors with a long-term investment horizon of 5-7 years, looking for exposure to undervalued stocks across various sectors and market capitalizations.

Investors should have a moderate to high-risk appetite and be willing to tolerate short-term volatility in the pursuit of long-term capital growth.

Conclusion: In conclusion, the SBI Contra Fund is a diversified equity mutual fund with a contrarian investment approach, investing in undervalued stocks across various sectors and market capitalizations.

The fund has a strong track record of delivering consistent long-term returns, outperforming its benchmark index.

However, investors should note that mutual fund investments are subject to market risks, and past performance is not indicative of future returns.

Therefore, investors should consult with a financial advisor before investing in any mutual fund scheme.

Disclaimer: Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

The net asset values (NAVs) of the mutual fund schemes are subject to fluctuations based on various factors and market forces, including changes in interest rates.

The past performance of the schemes is not necessarily indicative of their future performance. The mutual fund does not guarantee or assure any dividends under any of the schemes, as this is subject to the availability and adequacy of distributable surplus.

Investors are advised to carefully review the prospectus and seek professional guidance to understand the specific legal, tax, and financial implications of investing/participating in the scheme.

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