Published: Thursday, April 20, 2023, 9:13 [IST]
Let us begin the article with a clarification. The article is not a recommendation to invest or not to invest or hold the mutual fund units, but, is just purely informational.
One of the top performing mutual fund schemes from the SBI Mutual Fund stable is the SBI Contra Fund. The scheme has generated pretty decent returns and remains the best performing SBI Mutual Fund Scheme over a 3-year period.
SBI Contra Fund: Very good returns
If you had to invest Rs 5000 every month for the last 5-years in the SBI Contra Fund, the same would be worth Rs 5.38 lakhs today. That is a whopping 79% absolute returns over a period of 5-years. While the 1-year returns from the fund is a little subdued, the 5 and 3 years returns from the SBI Contra Fund are very good.
Among the stocks that the fund has invested include names like GAIL, ICICI Bank, HDFC Bank, Tech Mahindra, Axis Bank and Equitas Small Finance Bank. The largest portfolio of SBI Contra Fund comprises in GAIL. The equity component of the fund is 83.7%, debt is 9.1% and cash is 7.2%. The minimum amount for investing in the SIP is Rs 500.
How mutual funds in general could perform?
The thing about the stock markets and mutual fund schemes is that we seldom know how a scheme could perform going ahead. Apart from this the last 1-year returns from mutual fund schemes have not been great as the markets have been languishing with Foreign Portfolio Investors selling stocks and domestic institutions buying stocks. It’s hard to say at this point how mutual funds could perform over a period of 2-3 years. Apart from this bank interest rates have also been steadily rising, providing investors with yields that can go as high as 10% over a 5-year period.
The above-mentioned information is purely informational. The article should be treated as informational and not an advisory to invest. Greynium Information Technologies and the Author are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before making any investment decision.