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SBI Contra Fund

Nature of fund:

Open-ended equity fund.

Investment objective:

The SBI Contra Fund aims to provide maximum growth opportunities to investors through equity investments in the stocks of growth-oriented sectors. The fund comprises four sub-funds that are dedicated specifically to make investments in specific investment themes. These four sub-funds cater to the sub-themes of Information Technology, Pharmaceuticals, FMCG, Contrarian (which means investments in stocks that are currently not being viewed favourably), and Emerging Businesses. The fund focuses on investments in these sectors primarily. The contra fund only focuses on investing in equities of companies that aren’t currently being favoured by the market in order to capitalize on their potential for growth.

Fund information:

Inception date 14th July, 1999.
CRISIL rank (as in June, 2015)

CRISIL Rank 4 in the Diversified Equity funds category.

CRISIL Rank 5 in the Consistent Performers – Equity funds category.

Plans

•Regular.

•Direct.

Options

•Growth.

•Dividend.

Schemes

•SBI Contra Regular Growth Fund.

•SBI Contra Regular Dividend Fund.

•SBI Contra Direct Growth Fund.

•SBI Contra Direct Dividend Fund.

Entry load None.
Exit load

•For exit within 1 year from the date of allotment = 1.00%.

•For exit after 1 year from the date of allotment = 0.

Minimum investment

•Rs.5,000 (in multiples of Re.1).

•Additional Investment: Rs.1,000 (in multiples of Re.1).

SIP Monthly

•Minimum Rs.1000 (in multiples of Re.1) thereafter for minimum six months.

•Minimum Rs.500 (in multiples of Re.1) thereafter for minimum one year.

Quarterly

•Minimum Rs.1500 (in multiples of Re.1), thereafter for minimum one year.

Product label – Risk and target investors Moderately High Risk. Target investors are those who seek:

•Long term growth in investments.

•Investments are to be predominantly made in contrarian stocks which aren’t currently in favour in the market to provide maximum growth opportunities from lower cost funds.

Benchmark S&P BSE 100.
SWP

Yes.

Monthly

•Minimum of Rs.500 can be drawn.

•Must indicate in the application form or issue advance.

•Can indicate month and year from which SWP should commence and the frequency.

Quarterly

•Minimum of Rs.500 can be drawn.

•Must indicate in the application form or issue advance.

•Can indicate month and year from which SWP should commence and the frequency.

STP Yes
Redemption

•Rs.1,000 or 100 units or account balance (whichever is lower).

•The price will be the Applicable NAV minus Exit Load.

•Redemption proceeds will be dispatched within 10 working days.

Taxation (on investment and on redemption) The tax implications of being associated and invested in this mutual fund must be discussed at length with your tax advisor.

Fund manager

Mr. R. Srinivasan

The head of Equity at SBI, Mr. R. Srinivasan currently handles and oversees equity assets worth over Rs.16,000 crores. With 19 years of experience in the capital markets, he rose fast in the ranks after joining SBI in 2009 as a Senior Fund Manager. His previous companies include FCH, Principal PNB AMC, Oppenheimer & Co., Motilal Oswal and Indosuez WI Carr, and more. He has done his MFM from the University of Bombay and is also a post graduate in commerce.

Investment philosophy

SBI Contra Fund

  • To invest the lion’s share of funds in equities of companies that have been unfavourable.
  • Invests primarily in contrarian equities.
  • Aims to achieve excellent growth through investing in low prices equities.

Portfolio – Top 10 Holdings

Top 10 holdings for the SBI Contra Fund as on July 31st, 2015:

Equity Sector Percentage of AUM
HDFC Bank Banking / Finance 7.70
Maruti Suzuki Automotive 4.93
SBI Banking / Finance 4.15
Coal India Metals & Mining 4.13
Axis Bank Banking / Finance 3.97
Infosys Technology 3.95
Tata Motors Automotive 3.92
Procter & Gamble Consumer Non-Durables 3.45
Kotak Mahindra Banking / Finance 3.23
ITC Tobacco 3.07

Risk measures:

Sharpe Ratio 0.81
Alpha N/A
Beta 0.88
Standard deviation 13.89%

Performance

AUM (as on 30th June, 2015) Rs.2009.13 crores.
NAV (as on 2nd September, 2015)

•SBI Contra Regular Growth Fund = 83.4962.

•SBI Contra Regular Dividend Fund = 20.1969.

•SBI Contra Direct Growth Fund = 84.8497.

•SBI Contra Direct Dividend Fund = 24.8078.

Returns and benchmark comparison
Date Scheme returns S&P BSE 100
Since Inception (till 31st May, 2015) 21.95% 14.12%
5 year 10.05% 9.79%
3 year 20.34% 17.41%
1 year 45.24% 28.32%
Expenses
Slab rates SBI Contra Fund expenses as a % of daily net assets
First 100 crores 2.50%
Next 300 crores 2.25%
Next 300 crores 2.00%
Balance Assets 1.75%

Expert view of the fund + outlook

If you have already invested in this fund, exit immediately and invest in better performing funds with higher returns. This fund aims to invest primarily in undervalued scrips which are currently out of favour but show the potential for growth in the long term. If you are a new investor, steer clear of this fund and choose one of the many other options that promises higher returns and has better historical performance. The fund invests in medium and small cap companies that aren’t as financially stable as large cap companies.

How to apply – online + distributors

You can apply online through the SBI mutual funds website, or alternatively call the SBI mutual funds office and they will guide you through a step-by-step procedure on how to invest. At any stage during your research on the SBI website, scroll to the top right of the screen and you will find a button that you can click on to express your interest in investing in the fund. You can physically walk in to the SBI branch and fill up your KYC forms after which you will be directed on how to invest through the mutual funds investment desk at the branch. There’s a 24/7 dedicated toll free number you can call, and you can also send an SMS showing your intent to invest. All these details of the number to call or SMS can be found on the SBI mutual funds website. You can also contact any one of SBI’s Investor Service Centres.

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Display of any trademarks, tradenames, logos and other subject matters of intellectual property belong to their respective intellectual property owners. Display of such IP along with the related product information does not imply BankBazaar's partnership with the owner of the Intellectual Property or issuer/manufacturer of such products.

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