SBI Contra Fundthe oldest and largest contra fund, converted SIP from Rs 10,000 per month to Rs 7.15 crore in the last 25 years. The plan returned an XIRR of 20.83% in the same period.
Read also | Jio Financial and Tata Power among top 10 large cap companies bought by mutual funds in September
HDFC Capital Builder Value Funda value fund, converted SIPs from Rs 10,000 per month to Rs 5.07 crore in the last 25 years. JM Value Funda value fund, converted SIP of Rs 10,000 per month into Rs 2.76 crore in the mentioned time period. The plan returned an XIRR of 15.03% in the same period.
We consider all value and contra funds that have been in the market for 25 years. We consider regular and growth options. We calculate the XIRR from October 1999 to October 2024.
The previous exercise is not a recommendation. The exercise was conducted to find out which value and contra mutual funds converted SIPs of Rs 10,000 per month into more than Rs 1 crore in the last 25 years.
Investment or redemption decisions should not be made based on the previous year. Risk appetite, investment horizon and objective should always be considered before making any investment decision.
Read also | International MFs dominate the profitability table and achieved up to 3% profitability last week
Value funds Invest in stocks with reasonable valuations. Value investors buy these types of stocks and wait for the market to discover them. When the discovery occurs, stock prices will rise and value investors will make money.
During volatile phases, these plans fare better than those that stock up on expensive stocks. Value funds They are recommended only to sophisticated investors with a long-term investment horizon.
As per Sebi’s mandate, value and contrarian funds invest a minimum of 65% of total assets in equities and equity-related instruments and follow a value and contrarian strategy respectively.
(Disclaimer: The recommendations, suggestions, views and opinions given by the experts are their own. They do not represent the views of The Economic Times.)
Disclaimer:
The information contained in this post is for general information purposes only. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the post for any purpose.
We respect the intellectual property rights of content creators. If you are the owner of any material featured on our website and have concerns about its use, please contact us. We are committed to addressing any copyright issues promptly and will remove any material within 2 days of receiving a request from the rightful owner.