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Given Close To 70% SIP Returns In 5-Year, Highest Returns Among Equity Funds, Rated 5-Star By CRISIL
Investing is crucial to your financial well-being. Furthermore, the appropriate investments can help you retire comfortably. It can also provide financial stability, allowing for a variety of other beneficial pursuits throughout one's life.
Investing in mutual funds through SIP is growing as new investors join the race. Mutual Funds have many categories, one of them is Value equity funds or Value-oriented Equity Funds. These funds seek out stocks that are now trading at a discount but have long-term potential.
Here we have highlighted one such fund. The fund has been rated by rating agency CRISIL and it is the top-performing value equity fund SIP in 5 years.
SBI Contra Fund - Direct Plan-Growth
This equity-Value Oriented fund is a 28-year-old fund launched on July 14, 1999, by the SBI Mutual Fund. It is a medium-sized fund of its category.
The fund has worth Rs 4490.53 crore of Asset Under Management (AUM). Whereas, its Net Asset Value (NAV) declared on 20th May 2022 is Rs 208.1683. Its expense ratio is higher than its category average. The expense ratio is 1.28%, whereas its category average is 0.92%.
The funds aim to offer returns to investors by investing in a diversified portfolio of equity and equity-related securities following a contrarian investment strategy. The fund invests a minimum of 65% in stocks of companies which follow the contrarian investment theme. It has the flexibility to invest up to 35% in other equities and/or debt or money market instruments. The fund follows a combination of a top-down and bottom-up approach to stock-picking.
It is an open-ended highly risky fund for investment. The benchmark of this fund is S&P BSE 500 TRI. One can start investing in this fund by investing a minimum required amount of Rs 5,000 for a lump-sum payment and Rs 500 for SIP, For additional investment, a minimum of Rs 1,000 is required. The Lock-in period is not applicable in this fund. It charges 1% for redemption within 365 days of the investment.
Absolute & Annualised Returns
Lump-Sum Investment Returns
Since its launch, it has delivered 14.27% average annual returns.
| Tenure | Absolute Returns | Annualised Returns |
|---|---|---|
| 1 Year | 20.87% | 20.87% |
| 2 Year | 150.24% | 58.19% |
| 3 Year | 86.30% | 23.02% |
| 5 Year | 96.24% | 14.42% |
| Since Inception | 249.57% | 14.27% |
SIP Returns
| Tenure | Absolute Returns | Annualised Returns |
|---|---|---|
| 1 Year | 4.24% | 7.97% |
| 2 Year | 39.26% | 35.57% |
| 3 Year | 60.37% | 33.24% |
| 5 Year | 69.61% | 21.27% |
Portfolio
The fund has 81.05% investment in equities of which 35.39% is in large-cap stocks, 10.65% is in mid-cap stocks, and 25.37% is in small-cap stocks. The fund has 1.1% investment in Debt of which 1.1% is in Government securities.
The fund has the majority of its money invested in the Financial, Energy, Automobile, Services, and Materials sectors. Compared to other funds in the category, it has taken less exposure in the Financial, Energy sectors.
The fund's top holdings are in Nifty 50, TI Financial Holdings Ltd., GAIL (India) Ltd., ICICI Bank Ltd., and HCL Technologies Ltd.
Disclaimer
Mutual fund investments are subject to market risk. Read all scheme related documents, and Terms and Conditions carefully before investing. The above-mentioned information is purely informational and doesn't guarantee any return. The Greynium Information Technologies and the Author are not liable for any losses caused as a result of a decision based on the article.
