From ₹10,000 SIP to ₹7 Crore: The Remarkable Journey of this Contra Fund

Certainly! 🌟 India’s first contrarian mutual fund scheme, the SBI Contra Fund, has achieved remarkable success over the past 25 years. Let’s break down the key points:

1. Fund Performance:
   • Launched in July 1999, the SBI Contra Fund has consistently outperformed its benchmark index, the BSE 500 TRI.
   • Since inception, the fund has generated an impressive 19.99% return, compared to the benchmark’s 16.12%.
   • Imagine investing ₹1 lakh in 1999 for your child’s education. With the fund’s returns, that amount would have grown to ₹95.3 lakh by June 2024.
   • For those who opted for a monthly SIP of ₹10,000 since launch, the accumulated amount would be a staggering ₹7.19 crore today! 🚀
2. Investment Strategy:
   • Contra funds take a calculated gamble by focusing on out-of-favor or undervalued companies.
   • When market sentiment is negative towards a sector or company, their stock prices might be depressed.
   • Contra funds see this as an opportunity to buy low, expecting the stock price to eventually recover.
3. Other Details:
   • SBI Contra Fund currently manages an AUM (Assets Under Management) of ₹34,366 crore with over 20.5 lakh live folios.
   • In the last three years, the fund has returned an impressive 29.64%.
   • Unlike most funds, which chase hot and trending stocks, contra funds follow a contrarian investment strategy.

Remember, even a relatively small monthly investment, consistently made over a long period, can lead to substantial wealth. 🌱¹

If you’re considering retirement planning, think about using SIPs (Systematic Investment Plans) to build a comfortable nest egg.