If you are looking for a unique mutual fund option, the SBI Contra Fund – Direct Plan – Growth is worth knowing about.
This fund invests in companies that are currently undervalued but have strong potential for future growth.
As of September 2025, the fund’s Assets Under Management (AUM) stood at ₹46,654 crore.
Over the last five years, it has delivered impressive results, giving investors an average annual return of 30.37%.
For example, an investment of ₹10,000 in 2020 would have grown to ₹38,998 by September 2025—a return of nearly 300%.
Key Features of SBI Contra Fund
Category: Equity – Value Oriented (High Risk)
Fund Manager: Dinesh Balachandran
AUM: ₹46,654 crore (September 2025)
NAV: ₹420 (as of September 22, 2025)
Expense Ratio: 0.66% (Direct Plan)
Minimum Investment: SIP ₹1,000 | Lump Sum ₹5,000
Exit Load: 1% (if redeemed before 1 year)
Returns
1 year: 2% (short-term volatility)
3 years: 21.27% CAGR
5 years: 30.37% CAGR
10 years: 8.78% CAGR
Where Does the Fund Invest?
The SBI Contra Fund invests across multiple sectors:
Financials (21.61%) – HDFC Bank, Kotak Mahindra Bank, ICICI Bank, SBI
Energy (9%) – Reliance Industries, GAIL, Torrent Power
Consumer Staples (5.58%) – ITC, Dabur, United Spirits
Healthcare (7.61%) – Biocon, Cipla, Aster DM
Utilities (4.35%) – Torrent Power, CESC
Basic Materials (9.46%) – Tata Steel, Hindalco, NMDC
Technology (6.74%) – Infosys, Tech Mahindra, HCL Tech
Communications (2.72%) – Bharti Airtel, Indus Towers
Consumer Cyclical (7.13%) – Maruti Suzuki, Bajaj Auto, Whirlpool
Real Estate (1.34%) – Embassy REIT
Experts on CNBC-Awaaz believe this fund is especially attractive for long-term investors, as it channels more than 60% of its portfolio into banking, energy, steel, and healthcare—sectors crucial for India’s growth.
Who Should Invest?
The SBI Contra Fund is suitable for:
Long-term investors (5–10 years or more)
High-risk investors who believe in value investing
Those comfortable with short-term market volatility
Understanding Contra Funds
Definition: These funds invest against market trends, buying underperforming stocks with long-term potential.
Objective: Generate high returns over time.
Risk: Very high.
Investment Style:
Contra Fund: Focus on underperforming stocks, expecting a rebound.
Value Fund: Invests in undervalued stocks with strong fundamentals.
Investment Methods
SIP (Systematic Investment Plan):
Invest a fixed amount monthly.
Reduces the impact of market ups and downs.
Best for small, long-term investors.
Lump Sum Investment:
One-time large investment.
Can deliver high gains if invested at the right time.
Riskier as volatility impacts the entire amount.
Impact on India and Investors
For Investors: Provides an alternative, high-risk, high-return investment strategy.
For the Market: Strengthens capital flow into underperforming or overlooked sectors.
For Sentiment: Encourages diversification and confidence among retail investors.
Bottom Line: Contra funds, like the SBI Contra Fund, are for investors willing to take high risks for potentially higher rewards. Always assess your risk appetite and consult a financial advisor before investing.
