How ICICI Value and SBI Contra Funds are Different?

SBI Contra Fund has delivered around 20.28% annually over 5 years. ICICI Prudential Value Fund has delivered around 19.16%. But during the most recent market correction, SBI Contra fell by -6.0%, while ICICI Value fell by just -3.2%. That gap, roughly half the damage, this is what this blog is really about.

This blog compares both funds not on returns alone, but on how they behave across full market cycles: when markets fall, when they recover, and what's driving the difference under the hood.

First, Why Are These Two Funds Being Compared at All?

Both funds belong to the same broad universe; they avoid chasing market favourites and look for businesses that are underpriced or ignored. But their mandates are not identical.

A value fund looks for stocks trading below their intrinsic value or at reasonable valuations. A contra fund takes that one step further; it bets on businesses where sentiment is at its worst: ignored sectors, beaten-down stocks, or companies going through a turnaround. Contra can be more aggressive because the conviction is often against the current market mood.

That's what makes this comparison interesting. It isn't just two similar funds with different returns; it's two different levels of risk wearing similar clothes.

SBI Leads, But Not in Every Time Frame

Looking at trailing returns as of recent data, SBI Contra is ahead across all three standard periods:

Both funds have comfortably beaten the category average and Nifty 500 across all 3-year and 5-year; that's the first point worth noting.

What Happens When Markets Fall?

During the most recent correction phase, here is how both funds performed against the benchmark:

ICICI Value fell roughly half as much as SBI Contra. More importantly, it also fell significantly less than the category average itself.

Why Does SBI Fall More? Two Reasons

1. Higher mid and small-cap exposure historically

ICICI Prudential Value has maintained a higher large-cap allocation, which provides more stability during weak markets. SBI Contra has historically carried more mid and small-cap weight, which drives stronger returns in bull markets but sharper falls during corrections. (Note: SBI has been increasing large-cap exposure as its AUM has grown toward ₹49,000 crore.)

2. Much higher portfolio turnover

Think of it this way: one fund manager buys quality businesses and holds them for years. Another keeps reshuffling the portfolio every few months, moving into what looks like the next opportunity. The second approach can generate higher returns, but it also means more frequent active calls and more ways to be wrong when markets get volatile.

That second fund is SBI Contra. Here is the turnover data:

In January 2026, SBI Contra's turnover was 203%, meaning it reshuffled its entire portfolio roughly twice over. ICICI was at 49%, well below even the category average of 75%.

Higher turnover is not automatically bad. It shows an active manager making frequent calls. But it does mean the fund is taking on more active risk, which shows up in sharper falls during volatile periods.

Where Are They Actually Investing? The Sector Difference

As per February 2026 factsheets:

Both have Financial Services as their largest bet. The biggest divergence is IT; ICICI has almost double SBI's allocation (11.69% vs 6.78%), suggesting it sees value in IT even after the recent correction. SBI Contra holds sectors like textiles, chemicals, and telecom, where ICICI has little or no presence. That's the contra mandate in action, betting on what's currently out of favour.

ICICI holds around 65 stocks with more concentrated positions. SBI holds around 80 stocks, spreading bets wider but changing them more actively.

Before You Invest, Keep These in Mind

• Both are fully equity funds. Value or contra style does not reduce equity risk during sharp corrections, as the data above shows clearly.
• SBI Contra's AUM has grown to approximately ₹49,000 crore. Very large contra funds may find it progressively harder to take meaningful positions in smaller stocks, which could affect future performance compared to their own history.
• Both funds need time to work. Value and contra strategies can underperform the market for extended periods before the thesis plays out.

So Which One: Depends on What You're Trying to Solve

SBI Contra has historically been the higher-return, higher-risk option. ICICI Value has been the steadier one; it falls less when markets fall, even if it doesn't always lead during strong rallies.

Neither is the wrong choice. But they are not the same fund, and knowing the difference matters more than just comparing the 5-year return number.