SBI Contra Fund UNFOLLOW THE HERD

 Invest in SBI Contra Fund

KNOW YOUR FUND

Some companies have sound fundamentals and the potential to grow in the long term. But guess what? They might be part of a sector or themselves going through a difficult phase or in a turnaround phase. Hence, they are priced lower than their intrinsic value. SBI Contra Fund aims to identify and invest in such opportunities. 

INVESTMENT OBJECTIVE:- To provide the investor with the opportunity of long-term capital appreciation by investing in a diversified portfolio of equity and equity related securities following a contrarian investment strategy.

TYPE OF SCHEME:- An open-ended Equity Scheme following contrarian investment strategy.

KEY HIGHLIGHTS:- • The idea is to focus on companies and sectors that are currently out of favour. Within this, the attempt is to find companies that have the potential to revert back and grow in the long-term • The fund follows a value investing philosophy with portfolio valuations lower than prevailing market averages backed by thorough research and investment process • Investing in neglected stocks which have strong asset value and fundamental attributes as well as focusing on under-owned sectors which have high potential • Invests across market cap and sectors, wherever there might be opportunities • Suitable for patient investors who believe in the philosophy and are willing to invest in the long-term.

SBI Contra Fund has given 80.96% (CAGR) returns over the last year

 

FACTORS FOR THE RECENT FUND PERFORMANCE

INHERENT POSITIONS WHICH BENEFITED THE FUND: Overweight on pharma stocks at a time when pharma sector was out of favour (which was our contrarian call) and with the onset of COVID, the sector came into prominence and our overweight positioning here benefited the fund performance. 

BARGAIN VALUATIONS DUE TO EXTREME RISK AVERSION: From end of February till mid-May, investors were overly concerned around COVID-19 and this led to many stocks available at extreme bargain valuations. The fund was able to buy few of these beaten down stocks at that time and has subsequently benefited as Govt and Central bank policies have led to a significant rebound in market valuations. 

HIGHER ALLOCATION TO SMALL CAP STOCKS: The fund substantially increased its allocation in select small cap stocks in 2019. This hurt the fund initially, however, over the last 1 year these stocks have meaningfully outperformed the broader indices thus contributing to the performance of the fund. 

FUND DETAILS

Fund Manager: Mr. Dinesh Balachandran Managing Since: May-2018 Total Experience: Over 17 Years Benchmark: S&P BSE 500 Index (TRI)

 

Quantitative Data: Standard Deviation# : 24.52% Beta# : 1.04 Sharpe Ratio# : 0.34 Portfolio Turnover* Equity Turnover : 0.91 Total Turnover : 1.70 Total Turnover = Equity + Debt + Derivatives # S o u r c e : C R I S I L F u n d A n a l y s e r *Portfolio Turnover = lower of total sale or total purchase for the last 12 months (including equity derivatives) upon Avg. AUM of trailing twelve months. Risk Free rate: FBIL Overnight Mibor rate (3.43% as on 30th April 2021) Basis for Ratio Calculation: 3 Years Monthly Data Points Note: Fund Manager for Foreign Securities Mr.Mohit Jain w.e.f. Nov 28, 2017. Exp. Over 5years Ratios are computed using Total Return Index (TRI) as per SEBI Circular dated Jan 4, 2018

 

Exit Load: For exit within 1 year from the date of allotment - 1 %; For exit after 1 year from the date of allotment - Nil. Entry Load: N.A.

 

SIP: Rs.Any Day SIPRs. Facility is available for Monthly, Quarterly, Semi-Annual and Annual frequencies through electronic mode like OTM / Debit Mandate. Default SIP date will be 10th. In case the SIP due date is a Non Business Day, then the immediate following Business Day will be considered for SIP processing. Daily: Minimum Rs500 & in multiples of Rs1 thereafter for a minimum of 12 instalments. (Kindly refer notice cum addendum dated June 02, 2020 for further details) Weekly: Minimum Rs1000 & in multiples of Rs1 thereafter for a minimum of 6 instalments. (or) Minimum Rs500 & in multiples of Rs1 thereafter for a minimum of 12 instalments. Monthly: Minimum Rs1000 & in multiples of Rs1 thereafter for minimum six months (or) minimum Rs500 & in multiples of Rs1 thereafter for minimum one year. Quarterly: Minimum Rs1500 & in multiples of Rs1 thereafter for minimum one year. Semi Annual: Minimum Rs3000 & in multiples of Rs1 thereafter for a minimum of 4 installments. Annual: Minimum Rs5000 & in multiples of Rs1 thereafter for a minimum of 4 installments. Minimum Investment: Rs5000 & in multiples of Rs1 Additional Investment: Rs1000 & in multiples of Rs1

 

 

RETURNS (NAV as on 17th June, 2021)

Period Invested for	₹10000 Invested on	Latest Value	Absolute Returns	Annualised Returns	Category Avg	Rank within Category
1 Week	10-Jun-21	9895.40	-1.05%	-	-0.48%	3/3
1 Month	17-May-21	10677.50	6.78%	-	6.27%	1/3
3 Month	17-Mar-21	11149.90	11.50%	-	9.39%	1/3
6 Month	17-Dec-20	12782.70	27.83%	-	21.81%	1/3
YTD	01-Jan-21	12616.00	26.16%	-	20.38%	1/3
1 Year	17-Jun-20	19717.70	97.18%	97.18%	73.56%	1/3
2 Year	17-Jun-19	16043.60	60.44%	26.62%	22.27%	1/3
3 Year	15-Jun-18	15192.20	51.92%	14.91%	14.09%	1/3
5 Year	17-Jun-16	19440.70	94.41%	14.21%	15.99%	3/3
10 Year	17-Jun-11	31873.70	218.74%	12.28%	14.15%	3/3
Since Inception	06-May-05	104830.90	948.31%	15.69%	14.59%	1/3

Returns Calculator 

SIP RETURNS (NAV as on 17th June, 2021)

Period Invested for	₹1000 SIP Started on	Investments	Latest Value	Absolute Returns	Annualised Returns
1 Year	17-Jun-20	12000	17050.17	42.08 %	86.12 %
2 Year	17-Jun-19	24000	38545.83	60.61 %	53.14 %
3 Year	15-Jun-18	36000	57841.11	60.67 %	33.32 %

RISK RATIOS

Ratios calculated on daily returns for last 3 years (Updated as on 01st January, 1970)

No data available. Ratios are only available for the funds which are 3 years old.

Standard Deviation value gives an idea about how volatile fund returns has been in the past 3 years. Lower value indicates more predictable performance. So if you are comparing 2 funds (lets say Fund A and Fund B) in the same category. If Fund A and Fund B has given 9% returns in last 3 years, but Fund A standard deviation value is lower than Fund B. So you can say that there is a higher chance that Fund A will continue giving similar returns in future also whereas Fund B returns may vary.

Beta value gives idea about how volatile fund performance has been compared to similar funds in the market. Lower beta implies the fund gives more predictable performance compared to similar funds in the market. So if you are comparing 2 funds (lets say Fund A and Fund B) in the same category. If Fund A and Fund B has given 9% returns in last 3 years, but Fund A beta value is lower than Fund B. So you can say that there is a higher chance that Fund A will continue giving similar returns in future also whereas Fund B returns may vary.

Sharpe ratio indicates how much risk was taken to generate the returns. Higher the value means, fund has been able to give better returns for the amount of risk taken. . It is calculated by subtracting the risk-free return, defined as an Indian Government Bond, from the fund’s returns, and then dividing by the standard deviation of returns. For example, if fund A and fund B both have 3-year returns of 15%, and fund A has a Sharpe ratio of 1.40 and fund B has a Sharpe ratio of 1.25, you can chooses fund A, as it has given higher risk-adjusted return.

Treynor’s ratio indicates how much excess return was generated for each unit of risk taken. Higher the value means, fund has been able to give better returns for the amount of risk taken. It is calculated by subtracting the risk-free return, defined as an Indian Government Bond, from the fund’s returns, and then dividing by the beta of returns. For example, if fund A and fund B both have 3-year returns of 15%, and fund A has a Treynor’s ratio of 1.40 and fund B has a Treynor’s ratio of 1.25, then you can chooses fund A, as it has given higher risk-adjusted return.

Alpha indicates how fund generated additional returns compared to a benchmark. . Let’s say if a fund A benchmarks its returns with Nifty50 returns then alpha equal to 1.0 indicates the fund has beaten the nifty returns by 1%, so the higher the alpha, the better.

 

New Rate of Interest Rate 2024/ MF History

 

सेविंग ब्याज दर इस साल बहुत काम हो चुकी है देखा जा रहा है कि प्रत्येक साल ब्याज दर काम हो रहे है इसी लिए लोग अपने पैंसे को बैंको कि तुलना में अन्य जगह में निवेश करने लगे है इनमे से एक म्यूच्यूअल फंड्स भी है जहाँ पर लोग काफी  अच्छा निवेश करते है म्यूच्यूअल फंड्स व्यवसाय दिन पर दिन बढ़ रहा है | यहाँ देखा गया है कि पिछले कुछ सालो में निवेशकों कि शंख्या बहुत अधिक  रही है इसका कुछ डाटा एम्फी कि साइट से लिया गया है जो इस प्रकार नीचे दिया गया है |

Mutual Funds Investors as per AMFI

TABLE 1 ASSET UNDER MANAGEMENT AND FOLIOS - CATEGORY WISE - AGGREGATE - AS ON March 31, 2021

Types of Schemes	Investor Classification	AUM (Rs. Cr)	% to Total	No of Folios	% to Total
Liquid Fund/Money Market Fund/ Floater Fund	Corporates	441034.62	79.04	71635	2.34
	Banks/FIs	12777.22	2.29	885	0.03
	FIIs	63.21	0.01	15	0
	High Networth Individuals*	91380.67	16.38	641419	20.91
	Retail	12759.05	2.29	2352921	76.72
	Total	558014.76	100.00	3066875	100.00
Gilt Fund/ Glit Fund with 10 year constant duration	Corporates	9021.75	50.84	3318	1.23
	Banks/FIs	138.01	0.78	46	0.02
	FIIs	175.97	0.99	8	0
	High Networth Individuals*	6927.53	39.04	36875	13.63
	Retail	1482.69	8.36	230383	85.13
	Total	17745.96	100.00	270630	100.00
Remaining Income/ Debt Oriented Schemes	Corporates	510302.4	58.19	128628	2.34
	Banks/FIs	14877.77	1.7	1703	0.03
	FIIs	1023.1	0.12	73	0
	High Networth Individuals*	317973.43	36.26	1883902	34.22
	Retail	32745.73	3.73	3491488	63.41
	Total	876922.42	100.00	5505794	100.00
Growth/ Equity Oriented Schemes	Corporates	90638.3	9.04	444532	0.66
	Banks/FIs	670.59	0.07	938	0
	FIIs	3622.77	0.36	350	0
	High Networth Individuals*	355663.95	35.49	4091202	6.12
	Retail	551563.14	55.04	62323794	93.21
	Total	1002158.74	100.00	66860816	100.00
Hybrid Schemes	Corporates	53590.43	15.67	76553	0.82
	Banks/FIs	161.87	0.05	158	0
	FIIs	583.09	0.17	39	0
	High Networth Individuals*	212088.72	62.03	1868302	19.91
	Retail	75495.17	22.08	7439834	79.27
	Total	341919.29	100.00	9384886	100.00
Solution Oriented Schemes	Corporates	43.88	0.18	250	0
	Banks/FIs	0.07	0	2	0
	FIIs	0	0	0	0
	High Networth Individuals*	7100.78	29.13	82223	1.49
	Retail	17232.08	70.69	5427590	98.5
	Total	24376.82	100.00	5510065	100.00
Index Funds	Corporates	5663.51	29.55	6335	0.62
	Banks/FIs	92.84	0.48	9	0
	FIIs	0	0	0	0
	High Networth Individuals*	8266.64	43.14	70312	6.93
	Retail	5141.2	26.83	938337	92.45
	Total	19164.19	100.00	1014993	100.00
Gold ETF	Corporates	7552.57	53.48	8727	0.67
	Banks/FIs	1.12	0.01	5	0
	FIIs	0	0	0	0
	High Networth Individuals*	4673.56	33.09	39857	3.07
	Retail	1895.47	13.42	1250735	96.26
	Total	14122.72	100.00	1299324	100.00
ETFs(other than Gold)	Corporates	254342.86	92.18	42278	0.99
	Banks/FIs	3946.12	1.43	39	0
	FIIs	78.74	0.03	11	0
	High Networth Individuals*	13703.54	4.97	74710	1.76
	Retail	3859.59	1.4	4138426	97.25
	Total	275930.84	100.00	4255464	100.00
Fund of Funds investing Overseas	Corporates	1899.52	15.31	5311	0.76
	Banks/FIs	1.36	0.01	6	0
	FIIs	0.55	0	5	0
	High Networth Individuals*	7720.97	62.23	72412	10.39
	Retail	2785.49	22.45	618948	88.84
	Total	12407.89	100.00	696682	100.00
	Grand Total	3142763.6		97865529

* Defined as individuals investing Rs 2 lakhs and above

TABLE 2 - AGEWISE ANALYSIS OF ASSETS UNDER MANAGEMENT AS ON March 31, 2021 - AGGREGATE (Rs. in crores)

Types of Schemes	Investor Classification	0-1 Month	% to category	1-3 Month	% to category	3-6 Month	% to category	6-12 Month	% to category	12-24 Month	% to category	>24 Month	% to category	Total
EQUITY	Corporates	167049.73	41.07	29712.48	7.31	24782.23	6.09	40984.38	10.08	61850.18	15.21	82316.95	20.24	406695.94
	Banks/FIs	90.58	2.84	165.76	5.2	173.11	5.43	2092.41	65.69	558.68	17.54	104.54	3.28	3185.08
	FIIs	31.18	0.73	62.57	1.47	101.17	2.38	53.4	1.26	480.27	11.3	3522.88	82.86	4251.48
	High Networth Individuals*	20074.73	3.44	38772.39	6.65	41067.72	7.05	76362.76	13.1	131941.6	22.64	274504.11	47.11	582723.32
	Retail	17879.46	2.81	31727.6	4.98	36148.47	5.68	71495.3	11.23	127495.83	20.03	351899.15	55.27	636645.8
	Total	205125.69	12.56	100440.8	6.15	102272.69	6.26	190988.26	11.69	322326.57	19.73	712347.62	43.61	1633501.62
NON-EQUITY	Corporates	258394.8	26.64	141197.67	14.56	172208.26	17.75	124441.76	12.83	102873.03	10.6	170931.32	17.62	970046.83
	Banks/FIs	14336.72	48.64	5784.29	19.62	1527.23	5.18	2693.53	9.14	1184.75	4.02	3951.09	13.4	29477.6
	FIIs	114.62	8.84	225.12	17.37	101.02	7.8	74.52	5.75	675.75	52.14	104.9	8.09	1295.94
	High Networth Individuals*	25942.37	5.88	42235.94	9.58	53517.8	12.14	97485.31	22.11	86789.63	19.68	134945.07	30.61	440916.11
	Retail	3956.94	5.86	9354.44	13.85	8662.99	12.83	9455.26	14	8962.88	13.27	27132.9	40.18	67525.41
	Total	302745.45	20.06	198797.46	13.17	236017.3	15.64	234150.38	15.51	200486.04	13.28	337065.27	22.33	1509261.9
	Grand Total	507871.14	16.16	299238.26	9.52	338289.99	10.76	425138.64	13.53	522812.61	16.64	1049412.89	33.39	3142763.52

* Defined as individuals investing Rs 2 lakhs and above

MF History As per AMFI SITE

The mutual fund industry in India started in 1963 with the formation of Unit Trust of India, at the initiative of the Government of India and Reserve Bank of India. The history of mutual funds in India can be broadly divided into four distinct phases.

First Phase - 1964-1987

Unit Trust of India (UTI) was established in 1963 by an Act of Parliament. It was set up by the Reserve Bank of India and functioned under the Regulatory and administrative control of the Reserve Bank of India. In 1978 UTI was de-linked from the RBI and the Industrial Development Bank of India (IDBI) took over the regulatory and administrative control in place of RBI. The first scheme launched by UTI was Unit Scheme 1964. At the end of 1988 UTI had Rs. 6,700 crores of assets under management.

Second Phase - 1987-1993 (Entry of Public Sector Funds)

1987 marked the entry of non-UTI, public sector mutual funds set up by public sector banks and Life Insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC). SBI Mutual Fund was the first non-UTI Mutual Fund established in June 1987 followed by Canbank Mutual Fund (Dec 87), Punjab National Bank Mutual Fund (Aug 89), Indian Bank Mutual Fund (Nov 89), Bank of India (Jun 90), Bank of Baroda Mutual Fund (Oct 92). LIC established its mutual fund in June 1989 while GIC had set up its mutual fund in December 1990.

At the end of 1993, the mutual fund industry had assets under management of Rs. 47,004 crores.

Third Phase - 1993-2003 (Entry of Private Sector Funds)

With the entry of private sector funds in 1993, a new era started in the Indian mutual fund industry, giving the Indian investors a wider choice of fund families. Also, 1993 was the year in which the first Mutual Fund Regulations came into being, under which all mutual funds, except UTI were to be registered and governed. The erstwhile Kothari Pioneer (now merged with Franklin Templeton) was the first private sector mutual fund registered in July 1993.

The 1993 SEBI (Mutual Fund) Regulations were substituted by a more comprehensive and revised Mutual Fund Regulations in 1996. The industry now functions under the SEBI (Mutual Fund) Regulations 1996.

The number of mutual fund houses went on increasing, with many foreign mutual funds setting up funds in India and also the industry has witnessed several mergers and acquisitions. As at the end of January 2003, there were 33 mutual funds with total assets of Rs. 1,21,805 crores. The Unit Trust of India with Rs. 44,541 crores of assets under management was way ahead of other mutual funds.

Fourth Phase - since February 2003

In February 2003, following the repeal of the Unit Trust of India Act 1963 UTI was bifurcated into two separate entities. One is the Specified Undertaking of the Unit Trust of India with assets under management of Rs. 29,835 crores as at the end of January 2003, representing broadly, the assets of US 64 scheme, assured return and certain other schemes. The Specified Undertaking of Unit Trust of India, functioning under an administrator and under the rules framed by Government of India and does not come under the purview of the Mutual Fund Regulations.

The second is the UTI Mutual Fund, sponsored by SBI, PNB, BOB and LIC. It is registered with SEBI and functions under the Mutual Fund Regulations. With the bifurcation of the erstwhile UTI which had in March 2000 more than Rs. 76,000 crores of assets under management and with the setting up of a UTI Mutual Fund, conforming to the SEBI Mutual Fund Regulations, and with recent mergers taking place among different private sector funds, the mutual fund industry has entered its current phase of consolidation and growth