Are you the kind of investor who likes taking a little adventure in investments? If yes, then you need to know about contra funds. Contra is the short form of contrarian, where the idea is to invest in shares of companies that are not popular and are not in the favor of the investor at the point in time. In other words, it is defined by its against-the-wind kind of Investing style.
So, let’s know more about contra Mutual Funds.
Talk to our investment specialist
Contra funds are a type of equity fund where the fund manager bets against the prevailing market trends by buying assets that are either depressed or under-performing at that point in time. A contrarian is an investment strategy where the fund manager keeps a strong watch on the market to identify those underperforming stocks which have great potential to grow in the future. It requires a lot of research and analysis to choose a stock in advance that has potential to grow in the future.
The selection of the stock is done with an assumption that the asset will stabilise and come into the real value in the long run after the short-term turbulence. Investors planning to invest in contra funds should know that these funds may not perform in the short-term because of the kind of assets they invest in. Here, the idea is to buy assets at a lower cost than its fundamental value in the long term.
Fund NAV Net Assets (Cr) 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 5 YR (%) 2019 (%) Invesco India Contra Fund Growth ₹50.83
₹4,596 8.4 12.3 12 13.9 10.3 5.9 Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 24 Jan 20
The investment objective of the Scheme is to generate capital appreciation
through investment in equity and equity related instruments. The Scheme will seek to generate capital appreciation through means of contrarian investing. Invesco India Contra Fund is a Equity - Contra fund was launched on 11 Apr 07. It is a fund with Moderately High risk and has given a Below is the key information for Invesco India Contra Fund Returns up to 1 year are on
1. Invesco India Contra Fund
CAGR/Annualized return of 13.6% since its launch. Ranked 11 in
Contra category. Return for 2019 was 5.9% , 2018 was -3.3% and 2017 was 45.6% .
Invesco India Contra Fund
Launch Date 11 Apr 07 NAV (24 Jan 20) ₹50.83 ↑ 0.18 (0.36 %) Net Assets (Cr) ₹4,596 on 31 Dec 19 Category Equity - Contra AMC Invesco Asset Management (India) Private Ltd Rating ☆☆☆☆ Risk Moderately High Expense Ratio 2.02 Sharpe Ratio 0.24 Information Ratio 0.56 Alpha Ratio -1.98 Min Investment 5,000 Min SIP Investment 500 Exit Load 0-1 Years (1%),1 Years and above(NIL)
Growth of 10,000 investment over the years.
Date Value 31 Dec 14 ₹10,000 31 Dec 15 ₹10,402 31 Dec 16 ₹11,101 31 Dec 17 ₹16,167 31 Dec 18 ₹15,640 31 Dec 19 ₹16,569
Returns for Invesco India Contra Fund
absolute basis & more than 1 year are on
CAGR (Compound Annual Growth Rate) basis. as on 24 Jan 20
Duration Returns 1 Month 4.1% 3 Month 8.4% 6 Month 12.3% 1 Year 12% 3 Year 13.9% 5 Year 10.3% 10 Year 15 Year Since launch 13.6%
Historical performance (Yearly) on absolute basis
Year Returns 2019 5.9% 2018 -3.3% 2017 45.6% 2016 6.7% 2015 4% 2014 63% 2013 4.7% 2012 30.7% 2011 -22.1% 2010 12.9%
Fund Manager information for Invesco India Contra Fund
Name Since Tenure Amit Ganatra 14 Aug 12 7.22 Yr. Taher Badshah 10 Jan 17 2.81 Yr.
Data below for Invesco India Contra Fund as on 31 Dec 19
Equity Sector Allocation
Sector Value Financial Services 30.28% Consumer Cyclical 12.35% Technology 10.63% Industrials 8.54% Health Care 8.41% Energy 7.75% Consumer Defensive 6.26% Utility 6.19% Basic Materials 4.86% Communication Services 3.13%
Asset Class Value Cash 1.61% Equity 98.39%
Top Securities Holdings / Portfolio
Name Holding Value Quantity ICICI Bank Ltd (Financial Services)
Equity, Since 31 May 17 | ICICIBANK
9% ₹406 Cr 7,924,233
HDFC Bank Ltd (Financial Services)
Equity, Since 30 Apr 14 | HDFCBANK
8% ₹385 Cr 3,018,130 Reliance Industries Ltd (Energy)
Equity, Since 31 Aug 19 | RELIANCE
6% ₹276 Cr 1,779,031
Infosys Ltd (Technology)
Equity, Since 30 Sep 13 | INFY
5% ₹226 Cr 3,248,385 Larsen & Toubro Ltd (Industrials)
Equity, Since 28 Feb 18 | LT
4% ₹189 Cr 1,420,267 ITC Ltd (Consumer Defensive)
Equity, Since 30 Jun 19 | ITC
4% ₹186 Cr 7,540,697
Axis Bank Ltd (Financial Services)
Equity, Since 30 Sep 18 | 532215
4% ₹161 Cr 2,180,096
Bharti Airtel Ltd (Communication Services)
Equity, Since 31 Oct 18 | BHARTIARTL
3% ₹136 Cr 3,083,801
Sun Pharmaceuticals Industries Ltd (Healthcare)
Equity, Since 30 Nov 16 | SUNPHARMA
3% ₹126 Cr 2,809,825
State Bank of India (Financial Services)
Equity, Since 31 May 18 | SBIN
3% ₹123 Cr 3,583,462
The investment objective of the Scheme is to generate capital appreciation through investment in equity and equity related instruments. The Scheme will seek to generate capital appreciation through means of contrarian investing.
Invesco India Contra Fund is a Equity - Contra fund was launched on 11 Apr 07. It is a fund with Moderately High risk and has given a
Below is the key information for Invesco India Contra Fund
Returns up to 1 year are on
Ideally, investors who want to diversify their portfolio should look at this fund. Contra funds can be invested for a diversification opportunity. Investors should always remember that these funds may not perform in the short term, therefore, one who can invest for a longer duration, ideally for more than five years, should only invest in this fund.
Furthermore, contra funds are usually riskier than large-cap Equity Funds, so analyse your risk appetite before investing. You must be able to bear high-risk in this fund as sometimes the fund manager’s call can go completely awry.
Open Free Investment Account for Lifetime at Fincash.com.
Complete your Registration and KYC Process
Upload Documents (PAN, Aadhaar, etc.). And, You are Ready to Invest!
You Might Also Like