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Top 3 Best Contra Funds to Invest in 2019- Fincash

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Top 3 Best Contra Funds to Invest in 2019

Updated on September 15, 2019 , 2439 views

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.

best-contra-funds

So, let’s know more about contra Mutual Funds.

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What are Contra Mutual Funds?

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.

Best Performing Contra Funds to Invest in FY 19 - 20

FundNAVNet Assets (Cr)3 MO (%)6 MO (%)1 YR (%)3 YR (%)5 YR (%)2018 (%)
Invesco India Contra Fund Growth ₹44.35
↓ -0.78
₹3,880-6.5-7.8-8.38.510.5-3.3
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 17 Sep 19

1. Invesco India Contra Fund

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 CAGR/Annualized return of 12.7% since its launch.  Ranked 11 in Contra category.  Return for 2018 was -3.3% , 2017 was 45.6% and 2016 was 6.7% .

Below is the key information for Invesco India Contra Fund

Invesco India Contra Fund
Growth
Launch Date 11 Apr 07
NAV (17 Sep 19) ₹44.35 ↓ -0.78   (-1.73 %)
Net Assets (Cr) ₹3,880 on 31 Jul 19
Category Equity - Contra
AMC Invesco Asset Management (India) Private Ltd
Rating
Risk Moderately High
Expense Ratio 2.68
Sharpe Ratio -0.6
Information Ratio 0.88
Alpha Ratio -0.73
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.

DateValue
31 Aug 14₹10,000
31 Aug 15₹11,496
31 Aug 16₹13,167
31 Aug 17₹15,520
31 Aug 18₹19,170
31 Aug 19₹17,061

Invesco India Contra Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹300,000
expected amount after 5 Years is ₹395,578.
Net Profit of ₹95,578
Invest Now

Returns for Invesco India Contra Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 17 Sep 19

DurationReturns
1 Month -0.5%
3 Month -6.5%
6 Month -7.8%
1 Year -8.3%
3 Year 8.5%
5 Year 10.5%
10 Year
15 Year
Since launch 12.7%
Historical performance (Yearly) on absolute basis
YearReturns
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%
2009 104.7%
Fund Manager information for Invesco India Contra Fund
NameSinceTenure
Amit Ganatra14 Aug 126.8 Yr.
Taher Badshah10 Jan 172.39 Yr.

Data below for Invesco India Contra Fund as on 31 Jul 19

Equity Sector Allocation
SectorValue
Financial Services28.54%
Technology12.8%
Consumer Cyclical12.31%
Industrials9.4%
Health Care7.72%
Consumer Defensive6.79%
Utility6.7%
Energy5.16%
Basic Materials3.98%
Communication Services2.59%
Asset Allocation
Asset ClassValue
Cash4%
Equity96%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
HDFC Bank Ltd (Financial Services)
Equity, Since 30 Apr 14 | HDFCBANK
8%₹336 Cr1,509,065
ICICI Bank Ltd (Financial Services)
Equity, Since 31 May 17 | ICICIBANK
7%₹298 Cr7,285,956
↑ 406,145
Infosys Ltd (Technology)
Equity, Since 30 Sep 13 | INFY
6%₹229 Cr2,807,296
Larsen & Toubro Ltd (Industrials)
Equity, Since 28 Feb 18 | LT
5%₹197 Cr1,482,458
ITC Ltd (Consumer Defensive)
Equity, Since 30 Jun 19 | ITC
4%₹179 Cr7,270,011
↑ 226,785
Triparty Repo
CBLO/Reverse Repo | -
4%₹154 Cr
Reliance Industries Ltd (Energy)
Equity, Since 31 Aug 19 | RELIANCE
4%₹152 Cr1,219,434
↑ 1,219,434
NTPC Ltd (Utilities)
Equity, Since 31 Mar 19 | 532555
3%₹138 Cr11,367,415
Sun Pharmaceuticals Industries Ltd (Healthcare)
Equity, Since 30 Nov 16 | SUNPHARMA
3%₹116 Cr2,567,036
↑ 227,332
Exide Industries Ltd (Consumer Cyclical)
Equity, Since 31 Jan 17 | 500086
3%₹110 Cr6,177,129

Who Should Invest in Contra Funds?

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.

How to Invest in Contra Funds Online?

  1. Open Free Investment Account for Lifetime at Fincash.com.

  2. Complete your Registration and KYC Process

  3. Upload Documents (PAN, Aadhaar, etc.). And, You are Ready to Invest!

    Get Started

Disclaimer:
All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.
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