When the country's first Contra Fund completed 25 years, the income of the investors increased. The fund, which was launched in July 1999, has an annual return of 19.99 per cent. The BSE 100 rose 16.12 per cent during the same period.
If one lakh rupees had been deposited in the retirement scheme in 1999, the present value would have been 95.3 lakh rupees. If the investment was Rs 10,000 per month (SIP), it would have reached Rs 7.19 crore now.
The specialty of the market is that even a small monthly investment has the potential to grow into a large amount in the long run.
As of the end of June, SBI Contra Fund managed investments worth Rs 34,366 crore across more than 20.5 lakh folios.
As of the end of June, SBI Contra Fund managed investments worth Rs 34,366 crore across more than 20.5 lakh folios.
The return on investment was 30.67 per cent in three years, 29.79 per cent in five years, 20.96 per cent in seven years and 18.67 per cent in 10 years.
Investment strategy
SBI Contra Fund's investment strategy is not hot stocks or trending stocks. The fund followed the Contra strategy as the name suggests. Without moving with the market, when the market sentiment is unfavourable to particular sectors or companies, there is naturally a fall in the share price. Since the fundamentals of the company are good, then there is an opportunity to acquire shares at a lower price with the belief that there will be a future upturn in the share price. Contra funds take advantage of these opportunities.
Currently, there are only three funds that follow the Contra strategy. Apart from SBI, Invesco India Contra Fund and Kotak India Equity Contra are also in the fray.
How to apply for SIP?
The SIP return provided by the fund over a period of three years is 25.40 per cent. It returned 17.94 per cent in 15-year period, 21.84 per cent in 10-year period, 35.62 per cent in five-year period and 34.25 per cent in three-year period.
Who is suitable?
This scheme is suitable for those who expect high returns on long-term investments. According to the investment strategy described above, the plan is to find and invest in the best stocks in various sectors. There are 88 shares in the fund's portfolio. The top 10 stocks have an investment share of 22.73 per cent. He has invested 37.69 per cent in large-cap stocks, 25.14 per cent in mid-cap and 13.86 per cent in small-cap stocks. Contra funds are ideal for investing for financial goals after seven years.
These sectors are Finance (19.91 per cent), Energy (15.32 per cent), Technology (7.37 per cent) and Healthcare (7.14 per cent). HDFC Bank is the largest private sector lender with 19.49 per cent stake. The top gainers in the market were SBI, GAIL, Reliance Industries, ONGC, Whirlpool India, ICICI Bank, Torrent Power, Axis Bank and Tata Steel. Dinesh Balachandran has been managing the fund since May 2018.
pay attention This article attempts to explain the benefits of stock-based mutual funds. The fund mentioned need not be considered as an investment recommendation. Invest only with expert advice, considering the investment period and risk.
[19:52, 10/07/2024] Gayatri Content Writer: Monthly investment of Rs 10,000 fetches Rs. 7.19 crore: SIP magic
Monthly investment of Rs 10,000 fetches Rs. 7.19 crore: SIP magic
Those who have not heard of SIP and Contra Fund will not see, but those who do not know what is the difference between these and mutual funds and how they can give high returns. When the country's first Contra Fund is completed in 25 years, those who had invested Rs 1 lakh in the retirement scheme in 1999 will get Rs 95.3 lakh. Similarly, if you invest Rs 10,000 per month (SIP), it will now reach Rs 7.19 crore. Read the story in the link tree of the profile to understand what SIP is and how it is profitable and who all are suitable to join.
