SBI Contra Fund vs LIC Mutual Fund Liquid Fund
Side-by-side comparison of returns, risk, expenses, holdings and performance. AI-powered insights included.
3Y Return
16.36%
3Y Return
6.93%
Today, we are going to compare two popular funds in the Indian market: SBI Contra Fund and LIC Mutual Fund Liquid Fund. Fund A is a multi-cap fund that invests in a wide range of stocks, while Fund B is a liquid fund that invests in short-term debt instruments. In this article, we will analyze their performance, risk profile, and asset allocation to help you decide which fund is better suited for your investment goals.
| Parameter | ASBI Contra Fund - Direct Plan - Growth | BLIC Mutual Fund Liquid Fund - Direct Plan - Growth |
|---|---|---|
| Fund House | SBI Mutual Fund | LIC Mutual Fund |
| Category | Multi Cap | Liquid Fund |
| NAV (₹) | 408.51 | 5622.79 |
| AUM (₹ Cr) | 4.74 Lac Cr | 4.02 Lac Cr |
| Expense Ratio (%) | 0.72% | 0.12% |
| Riskometer | Very High | Low |
| Volatility | 13.7 | 0.12 |
| Sharpe Ratio | 0.72 | 3.58 |
| 1 Year Return (%) | -1.21% | 6.17% |
| 3 Year Return (%) | 16.36% | 6.93% |
| 5 Year Return (%) | 18.26% | 6.11% |
| Since Launch (%) | 15.48% | 50.63% |
| Min SIP (₹) | 500 | 500 |
| Min Lumpsum (₹) | 1000 | 1000 |
| Launch Date | 2 January 2013 | 1 January 2013 |
| Exit Load | Nil | Nil |
| Fund Manager | Dinesh Balachandran; Pradeep Kesavan (8.1 years yrs) | Yogesh Patil (3.5 years yrs) |
| Benchmark | Nifty 500 Multicap 50:25:25 TRI | NIFTY Liquid Index |
| Top 3 Holdings | HDFC Bank Ltd. (6.59%), Reliance Industries Ltd. (5.35%), Biocon Ltd. (3.04%) | State Bank of India CD (8.5%), HDFC Bank CD (7.2%), Reliance Industries T-Bills (6.8%) |
| Asset Allocation | Equity: 81.12% | T-Bills: 2.35% | Forgn. Eq: 2.19% | Debenture: 1.92% | CD: 1.05% | REITs: 0.94% | Call Option: -0.03% | Futures: -0.16% | T-Bills: 65.00% | CD: 20.00% | CP: 10.00% | Cash: 5.00% |
| Portfolio Turnover | 130% | 241% |
🤖 AI Verdict – Which is Better?
After analyzing the performance of both funds, we can conclude that Fund A is a better choice for long-term wealth creation. Its 3-year return of 16.36% is significantly higher than Fund B's 6.93%. Additionally, Fund A's expense ratio of 0.72% is relatively low compared to Fund B's 0.12%. However, Fund A comes with a higher risk profile, indicated by its riskometer rating of Very High. So, if you're willing to take on higher risk for potentially higher returns, Fund A might be the better choice for you.
Why consider SBI Contra Fund?
- Expense ratio: 0.72%
- 3Y return: 16.36%
- AUM: 4.74 Lac Cr
- Sharpe Ratio: 0.72
Why consider LIC Mutual Fund Liquid Fund?
- Expense ratio: 0.12%
- 3Y return: 6.93%
- AUM: 4.02 Lac Cr
- Sharpe Ratio: 3.58
📈 SIP Suitability
For a monthly SIP of 10+ years, Fund B might be a better option due to its consistent returns and lower volatility. Fund B's 1-year return of 6.17% is more stable compared to Fund A's -1.21%. Additionally, Fund B's asset allocation is more conservative, with a higher allocation to T-Bills and CDs, which can provide a steady income stream. However, Fund A's higher returns in the long run might outweigh the risks associated with it.
⚠️ Risk & Cost Analysis
When it comes to risk and cost, Fund B is a clear winner. Its riskometer rating of Low indicates a lower risk profile, while its volatility of 0.12 is significantly lower than Fund A's 13.7. Additionally, Fund B's expense ratio of 0.12% is one of the lowest in the market. However, Fund B's returns are also lower, so you need to weigh the risks and costs against the potential returns.
📊 Portfolio Diversification
When it comes to portfolio diversification, Fund A has a more diversified portfolio. Its asset allocation is spread across various asset classes, including equity, debt, and foreign equity. This can help reduce risk and increase potential returns. However, Fund A's top holdings, including HDFC Bank Ltd. and Reliance Industries Ltd., are highly concentrated, which can increase risk. Fund B, on the other hand, has a very conservative asset allocation, with a high allocation to T-Bills and CDs, which can reduce risk but also reduce potential returns.
SIP Calculator – Compare Growth Potential
SBI Contra Fund
₹1516047.14
@16.4% annual return (3Y)
LIC Mutual Fund Liquid Fund
₹867076.87
@6.9% annual return (3Y)
*Projected returns are illustrative based on historical 3‑year returns. Past performance does not guarantee future returns.
❓ Frequently Asked Questions (Comparison)
Q1: Which fund gives better returns in the long run?
Based on 5Y returns, Fund A gives better returns with 18.26%. However, Fund B's 3Y returns of 6.93% are higher than Fund A's 3Y returns of 16.36%.
Q2: Is the higher risk fund worth it?
No, the higher risk fund is not worth it. Fund A's volatility of 13.7 is significantly higher than Fund B's 0.12, indicating a higher risk profile. However, Fund A's Sharpe ratio of 0.72 is higher than Fund B's 3.58, indicating that Fund A's returns are more risk-adjusted.
Q3: Which fund is more cost-effective?
Fund B is more cost-effective. Its expense ratio of 0.12% is significantly lower than Fund A's 0.72%. Additionally, Fund B does not charge any exit load, while Fund A's exit load is not provided.
Mahendra Maurya
6+ Years in Banking, Wealth Management & Financial ServicesFounder & Author of ShareTargetPrice.in. 6+ years in Banking, Wealth Management & Financial Services.
📊 Author & Founder at Share Target Price