Sbi Contra Fund Nav History

Invest in the SBI Contra Fund and experience hassle-free investing with just three easy steps. Reap the benefits of your investment effortlessly.

When is the right time to invest in a contra fund?

When stocks that have been performing poorly start to improve, it can be highly beneficial for investors who practice prudent contrarian investing. This approach involves going against the crowd and investing in assets that are currently undervalued or unpopular. By doing so, investors can potentially reap significant rewards when these underperforming equities eventually bounce back.

One practical example of prudent contrarian investing is buying shares of a company that has recently experienced a decline in stock price due to temporary setbacks or negative market sentiment. While other investors may be selling their shares out of fear or uncertainty, the contrarian investor sees an opportunity to buy at a lower price and wait for the recovery.

Contrary to popular belief, this investment strategy requires patience and a long-term perspective. It may take time for the value of these investments to fully emerge and generate substantial returns. Therefore, contra mutual funds can be an attractive option for those seeking long-term growth and willing to withstand short-term fluctuations.

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Contra mutual funds are specifically designed with the objective of identifying undervalued securities with potential upside over time. These funds pool money from multiple investors and employ professional fund managers who carefully select investments based on their contrarian approach. By diversifying across various underperforming assets, contra mutual funds aim to minimize risk while maximizing potential returns.

Frequently Asked Questions

Equity funds are investment plans that focus on investing in stocks of companies with varying market values.

Understanding Large Cap, Mid Cap, Small Cap, and Multi Cap Equity Funds

SEBI categorizes listed companies according to their market capitalization. Large-cap funds invest in the top 100 companies, while mid-cap funds focus on companies ranked between 101 and 250. Small-cap funds target companies ranked from 251 onwards. Multi-cap funds, on the other hand, have the flexibility to invest in small cap, mid cap, and large cap companies.

Understanding ELSS Funds

ELSS funds are mutual funds that offer tax benefits and primarily invest in equity schemes. These funds have a lock-in period of 3 years, during which investors cannot withdraw their investments.

Understanding Bluechip Funds

Bluechip funds are investment funds that focus on purchasing shares of financially successful and established companies with a proven track record. These companies have demonstrated consistent financial performance over an extended period.

Understanding the concept of lock-in period

The lock-in period refers to the duration during which your investment in a mutual fund cannot be withdrawn. While many mutual funds do not have any lock-in period, tax-saving schemes like ELSS have a minimum lock-in period of 3 years, which is the shortest compared to other options under Section 80C. The lock-in period starts from the date of investment and may vary for SIPs (Systematic Investment Plans).

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Is KYC mandatory for BLACK?

KYC is a mandatory requirement for all fund houses. When investing through BLACK, you only need to complete your KYC process once. This single KYC will be applicable for all future investments as well.

Understanding the Mandate of Auto-SIP

A Mandate is a single registration that allows you to authorize your bank account to deduct a specific amount of money from your account on a daily basis for investing in an SIP portfolio. Once you have registered for Mandate, you do not need to go through the payment process every time you make an investment in the SIP.

Is investing in contra fund secure?

Investing in contra funds can be risky and volatile, making them an unsuitable option for conservative investors. These funds primarily focus on investing in stocks that are undervalued or out of favor with the market. Such stocks often have low liquidity, meaning there may not be many buyers or sellers available at any given time. Additionally, these companies might have poor financial performance or negative market sentiment associated with them.

Due to their nature, contra funds tend to experience higher levels of volatility compared to other investment options. The value of investments in these funds can fluctuate significantly over short periods due to changes in investor sentiment towards the underlying stocks held by the fund.

It is important for investors considering contra funds to carefully assess their risk tolerance before investing. While they offer potential rewards if successful, there is also a possibility of significant losses if the anticipated recovery does not materialize or if market conditions worsen.

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What do value contra funds refer to?

Contrary to conventional investment strategies, which typically involve buying popular stocks or assets that are performing well, a contra fund seeks out opportunities in sectors or companies that may be temporarily out of favor with investors. By identifying such undervalued assets, the manager believes there is potential for significant upside once market sentiment shifts.

The primary objective of a contra fund is to generate long-term capital appreciation for its investors. To achieve this goal, the fund manager carefully analyzes various factors such as industry trends, company fundamentals, and overall market conditions before making investment decisions. They actively seek out investments with strong growth prospects but have been overlooked or neglected by other investors due to short-term concerns.