SBI scheme doubles money in a year, you also have good earning opportunity - Newztezz Online


Friday, March 19, 2021

SBI scheme doubles money in a year, you also have good earning opportunity

Contrast schemes of mutual funds have given strong returns as compared to FDs of SBI. 
SBI Contra Fund has given 16 per cent in three months, 46 per cent in 6 months and about 100 per cent in a year. Whereas, SBI's FD is getting 5 per cent in one year, 5.10 per cent in two years. Let us know whether there is a chance to make money in SBI Contra Fund even further….

First of all, what are the contra funds?

There are many types of mutual funds. They invest differently. According to that, their category is fixed.

Asif Iqbal, head of research at Escort Security, points out that contra funds are equity mutual funds, which invest money in the market with the opposite view.

They do not believe in investing aside. When selling in other stocks at the time of decline, these schemes buy these stocks at the same time.

How much SBI Contra Fund has given

According to the information given on the SBI website, interest is being received at the rate of 2.90 percent on FDs ranging from 7 days to 45 days. 4.40 per cent interest is being paid annually on FDs less than 1 year.

More than 1 year but less than 2 years FD, 5 percent, more than 2 years but less than 3 years FD is getting 5.10 percent interest.

At the same time, this fund has been getting 859 percent interest since the beginning. In this, the value of 10 thousand rupees has become 95 thousand rupees.

If you talk about SIP, then the value of 12 thousand rupees has increased to 18 thousand rupees in a year. At the same time, the value of Rs 1.20 lakh has increased to Rs 2.46 lakh in 10 years.

Know these important things before investing…

Before investing money in a mutual fund, it is important to know about its expense ratio. Suppose the expense ratio of a fund is 1.5 percent.

You have invested 10 thousand rupees in that fund. So this means that you will pay 150 rupees to the company for the management of this fund. That is, you are charged money for many important expenses.

If this fund gave a return of 15 per cent in a year, then you will get a return of 13.5 per cent. If a company maintains only one percent expense ratio, then you have to pay 100 rupees annually as a fee. There you will get 14.5 percent return instead of 15 percent.

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