Synopsis: This article provides a comparison of SBI Contra Fund and ICICI Prudential Value Fund in terms of 5-year returns, expense ratio, and investment strategy. It helps investors identify which fund delivers better long-term returns based on their risk profile.
The value and contra funds have the same philosophies of purchasing undervalued stocks, but they vary in the implementation. Value funds invest in those companies with good fundamentals that are underpriced, and contra funds invest in the opposite direction with the prevailing market trend.
The difference between the two approaches becomes critical when markets experience their cyclical patterns. Value funds pursue constant growth while contra funds achieve better results during periods of market volatility. This comparison evaluates two of the most popular funds to see which one has delivered better results over the last five years.
1. SBI Contra Fund
- NAV: ₹409.50
- AUM: ₹43,756.59 Cr
- Expense Ratio: 0.72%
- Exit Load: 0.25% (within 30 days) and 0.10% (within 90 days)
- Performance Snapshot
- 3-Year CAGR: 18.4%
- 5-Year CAGR: 21.2%
- 3-Year Absolute Return: 66.0%
- 5-Year Absolute Return: 158.1%
- Category Comparison (5-Year)
- Fund 5-Year CAGR: 21.2%
- Equity value-oriented Category Average: 18.8%
- Outperformance: +2.4 percentage points
2. ICICI Prudential Value Fund
- NAV: ₹513.09
- AUM: ₹55,851.76 Cr
- Expense Ratio: 0.97%
- Exit Load: 1% (within 12 months)
- Performance Snapshot
- 3-Year CAGR: 19.4%
- 5-Year CAGR: 20.0%
- 3-Year Absolute Return: 71.4%
- 5-Year Absolute Return: 146.1%
- Category Comparison (5-Year)
- Fund 5-Year CAGR: 20.0%
- Equity value-oriented Category Average: 18.8%
- Outperformance: +1.2 percentage points
Value vs Contra Funds Comparison (5-Year Focus)
Example: Wealth Creation Comparison
(SIP: ₹4,000/month for 5 Years)
Note: This is an illustrative example to show how CAGR differences translate into wealth creation. Actual returns may vary depending on market conditions and investment timing.
Also read: Top 5 Manufacturing Mutual Funds Boosting India’s Industrial Growth With Returns Up to 23% in 1 Year
Which One is Suitable for You?
Choose SBI Contra Fund when you are able to endure more market fluctuations, but your investment goal is to achieve more returns by contrarian market strategies and choose the ICICI Prudential Value Fund when you are patient to get stable returns through a value investing strategy, which entails disciplined application of moderate-risk investments in long terms.
Key Takeaways
- SBI Contra Fund leads in returns with the highest 5-year CAGR and stronger SIP growth.
- ICICI Value Fund is stable and has a disciplined value investment policy.
- Contra strategy may perform better in volatile markets, but at the cost of a greater short-term risk.
- The two funds are doing better than their respective category averages, but the difference varies.
- A 1–2% return difference can create ₹10,000–₹15,000 even with a ₹4,000 SIP in just 5 years.
Conclusion
The SBI Contra Fund offers better returns in 5 years, and this means that it will create more wealth for those investors who can withstand market volatility. ICICI Prudential Value Fund offers consistent and predictable investment returns that would meet the needs of investors who are moderate risk takers and have long-term investment plans.
Written By Ameet S
Disclaimer: The information provided in this article is for educational purposes only and should not be construed as financial advice or an investment recommendation. Historical performance determines the returns mentioned, which may not be sustainable in the future. Mutual fund investments are subject to market risks, including potential loss of capital. Investors are advised to assess their risk appetite and financial goals and to consult a certified financial advisor before investing.
