Top Contra Mutual Fund With Highest SIP Returns: No. 1 fund from SBI AMC has turned Rs 20,000 monthly SIP into Rs 30 lakh in 5 years
Top Contra SIP Mutual Funds in 5 Years: Contra mutual funds follow a strategy where fund managers invest against market trends. They invest in stocks which are undervalued and are likely to realise their potential in the future.
Top Contra SIP Mutual Funds in 5 Years: Contra mutual funds are those where the fund manager invests against market trends in stocks that have not been performing well but are expected to realise their potential in the future. E.g., they may pick the stocks of a sector going through a slump for some specific reasons in a rising market. To earn profit, the manager can wait for the right time when the sector will recover and stocks will rise. This is a risky investment approach, but a fund manager with a sharp eye on the market can cash in on contra trends. There are only three contra mutual fund schemes in existence. However, each of the funds has given at least 52.31 per cent annualised SIP return (XIRR) in one year, 32.19 per cent return in three years, and 28.82 per cent return in the five-year period. Here, we take you through all three contra funds' performance, their features, and what Rs 20,000 monthly investment in each of them has given in the five-year period.
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SBI Contra Direct Plan-Growth
The contra fund from SBI Mutual Fund House has given 37.31 per cent annualised SIP returns in five years. The fund has assets under management (AUM) of Rs 34,366 crore, while its net asset value (NAV) is Rs 418.9669. The fund has given 18.41 per cent CAGR since its inception in January 2013. Benchmarked against BSE 500 TRI, the fund has Rs 5,000 as the minimum lump investment and Rs 500 as the minimum SIP investment. The fund has an expense ratio of 0.63 per cent.
SBI Contra Direct Plan-Growth
It has 91.36 per cent of its investments in equity and 5.47 per cent in debt. Its 48.32 per cent investments are in large caps. In its portfolio of 94 stocks, the fund has Nifty Bank, HDFC Bank, Kotak Mahindra Bank, and GAIL (India) Bank as the main stocks.
A Rs 20,000 monthly SIP in the fund, or a total of Rs 12 lakh investment, has turned into Rs 29.72 lakh.
Kotak India EQ Contra Fund Direct-Growth
The fund in the second position has given 31.56 per cent annualised SIP returns in five years. It has an asset base of Rs 3,500 crore, while its NAV price is Rs 175.5. The fund has given 18.97 per cent CAGR since the scheme's launch in January 2013. Benchmarked against NIFTY 500 TRI, the fund has a minimum lump sum investment of Rs 5,000 and a minimum SIP investment of Rs 1,000. Its expense ratio is 0.58 per cent.
Kotak India EQ Contra Fund Direct-Growth
The fund has 98.75 per cent of its investments in equity, of which 64.44 per cent are in large caps. In its 68-stock portfolio, the fund has HDFC Bank, ICICI Bank, Reliance Industries Ltd, and Infosys Ltd as its main stocks.
On a monthly SIP investment of Rs 20,000, an investor has got a total of Rs 26.01 lakh in five years.
Invesco India Contra Fund Direct-Growth
The third mutual fund in the list has given 28.82 per cent SIP returns. The fund's AUM is Rs 16,188 crore, while its NAV is Rs 150.08. Benchmarked against BSE 500 TRI, the fund has given a 20.42 per cent annualised return since its launch in January 2013. The expense ratio in the fund is 0.54 per cent. The minimum lump sum investment in the fund is Rs 1,000, while the minimum SIP investment is Rs 500.
Invesco India Contra Fund Direct-Growth
The contra fund has 98.25 per cent of its investments in equity of which 66.18 per cent are in large-cap stocks. In its 69-stock portfolio, the fund has ICICI Bank, HDFC Bank, Infosys, and Axis Bank as its main stocks.
A Rs 12 lakh investment in the fund has given a total of Rs 24.38 in the five-year period.