SBI Contra Fund: Make High Value Returns

Are you going against the crowd to earn better returns? Yes, exactly. That is the idea behind the SBI Contra Fund, a unique mutual fund that invests in stocks that are undervalued or ignored by most investors. Instead of following market trends, it takes a contrarian strategy.

Their approach aims to deliver high-value returns over the long term. You can start with the minimum amount through SIP.

Let us explore in this article what is a contra fund, its overview & the investment objective of this contra fund & the most popular question: "Mastermind behind the SBI Contra Fund?

What is a Contra fund?

A Contra Fund is categorized as an equity mutual fund that invests against the market trend. In this, fund picks stocks that are undervalued or out of favour but have strong potential in the long run & this approach is called a contrarian investment strategy. Invest in a combination of large, mid & small cap stocks. This is an open-ended fund.

The Contra fund investing works by following the buy low, wait & get benefit later strategy. Fund managers invest in companies that others are avoiding, but may bounce back in the future over time. This fund needs patience and long-term thinking, as returns are not immediate.

Overview of SBI Contra Fund

The SBI contra fund is an equity mutual fund handled by the fund house of SBI Mutual Fund that observes a contrarian strategy, investing in undervalued stocks that the other market is ignoring.

What is the Investment Objective of the SBI Contra Fund?

The investment objective is a remarkable reason that investors are jumping into this fund. Such as:

Contrarian strategy

By investing in various equity & equity-related portfolios, using a contrarian strategy philosophy to buy undervalued or out-of-favour stocks & then selling shares when they are highly valued. SBI contra fund regular plan growth aims to offer long-term capital appreciation.

Top-down + bottom-up approach

It opts for stocks that have a recovery capability & recover through the combination of in-depth company research with market swings.

Objective

An objective of this fund is to get the cash flows during market fluctuations. Make high returns & long-term benefits, invest when others are ignored & stay throughout the downturn.

In simple terms, SBI Contra Fund looks for good-quality stocks that others ignore, waits for them to recover, & aims for strong growth over the long term.

This mutual fund offers such benefits that enhance your portfolio.

Benefits of SBI Contra Mutual Fund

Here are several benefits that the SBI Contra fund's regular growth provides:

Who Should Invest in SBI Contra Fund?

You can invest in the SBI contra fund regular plan growth if these points align for you:

Long-Term Investors

If you can invest for a long horizon, with a long-term financial goal, then this fund rewards you with compound returns.

Risk-Tolerant Individuals

Suited for investors who are ready to accept market fluctuations & downturns in return to accept higher long-term profits.

Value Investors

If you know and accept buying undervalued stocks & have patience, allowing them to grow, then the SBI Contra fund is for you.

Beginner or Experienced Investors

Perfect for those who go with contrarian strategies & want to diversify their portfolio.
Well, these points lead you to question the expertise of this fund.

Let us find the answer to that.

Who is the Mastermind Behind the SBI Contra Fund?

The masterminds behind the SBI contra fund are Dinesh Balachandran & Pradeep Kesavan. They both led to the success of this fund with a contrarian strategy & digging deeper than a detective in a crime show. Let us know their expertise.

Dinesh Balachandran

• He has been the Lead Fund Manager since May 2018.
• Alumni of IIT Bombay & MIT (M.S.), and a CFA charter holder.
• Over 20 years of experience, started at Fidelity in Boston & joined SBI in 2012.
• Oversee other SBI flagship funds too, bringing strong value-investing discipline.

Pradeep Kesavan

• He has been the Co-Fund Manager since December 2023
• Holds a B.Com MBA and CFA, with 18+ years in finance
• Joined SBI in mid-2021 after roles at Morgan Stanley, Accenture, and more

Conclusion

To sum up, the SBI Contra Fund Regular Growth makes high-value returns. Investors find it attractive due to its contrarian strategy to identify undervalued stocks with a mix of top-down and bottom-up approaches. The SBI contra fund offers long-term growth potential with the fund manager's expertise.

You may maximize the potential of this mutual fund by starting a SIP which builds discipline in your financial journey.