Top 3 Best Contra Funds to Invest in 2026

Updated on April 15, 2026 , 37113 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. They are 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.

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.

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Fund Selection Methodology used to find 3 funds

Category: Equity
Sub-category: Contra
AUM Range: 100 to 100000 Cr
Sorted On : 3-year return (high to low)
Tags: fcpro
No Of Funds: 3

Best Performing Contra Funds to Invest in FY 26 - 27

Fund	NAV	Net Assets (Cr)	3 MO (%)	6 MO (%)	1 YR (%)	3 YR (%)	5 YR (%)	2025 (%)
Kotak India EQ Contra Fund Growth	₹149.457 ↑ 1.29	₹5,225	-3.7	-3.3	7.5	19.6	16.7	7.4
Invesco India Contra Fund Growth	₹129.94 ↑ 0.93	₹19,948	-4.9	-5.9	2.8	19	16	3.1
SBI Contra Fund Growth	₹371.699 ↓ -0.38	₹49,111	-5.3	-3.6	3.4	17	19.7	6.1
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 17 Apr 26

Research Highlights & Commentary of 3 Funds showcased

Commentary	Kotak India EQ Contra Fund	Invesco India Contra Fund	SBI Contra Fund
Point 1	Bottom quartile AUM (₹5,225 Cr).	Lower mid AUM (₹19,948 Cr).	Highest AUM (₹49,111 Cr).
Point 2	Oldest track record among peers (20 yrs).	Established history (19+ yrs).	Established history (20+ yrs).
Point 3	Rating: 3★ (lower mid).	Top rated.	Rating: 3★ (bottom quartile).
Point 4	Risk profile: Moderately High.	Risk profile: Moderately High.	Risk profile: Moderately High.
Point 5	5Y return: 16.75% (lower mid).	5Y return: 15.95% (bottom quartile).	5Y return: 19.66% (upper mid).
Point 6	3Y return: 19.61% (upper mid).	3Y return: 18.99% (lower mid).	3Y return: 16.99% (bottom quartile).
Point 7	1Y return: 7.54% (upper mid).	1Y return: 2.84% (bottom quartile).	1Y return: 3.44% (lower mid).
Point 8	Alpha: 4.55 (upper mid).	Alpha: -2.49 (bottom quartile).	Alpha: 0.13 (lower mid).
Point 9	Sharpe: 1.47 (upper mid).	Sharpe: 0.75 (bottom quartile).	Sharpe: 0.97 (lower mid).
Point 10	Information ratio: 1.30 (upper mid).	Information ratio: 0.59 (bottom quartile).	Information ratio: 1.01 (lower mid).

Kotak India EQ Contra Fund

Bottom quartile AUM (₹5,225 Cr).
Oldest track record among peers (20 yrs).
Rating: 3★ (lower mid).
Risk profile: Moderately High.
5Y return: 16.75% (lower mid).
3Y return: 19.61% (upper mid).
1Y return: 7.54% (upper mid).
Alpha: 4.55 (upper mid).
Sharpe: 1.47 (upper mid).
Information ratio: 1.30 (upper mid).

Invesco India Contra Fund

Lower mid AUM (₹19,948 Cr).
Established history (19+ yrs).
Top rated.
Risk profile: Moderately High.
5Y return: 15.95% (bottom quartile).
3Y return: 18.99% (lower mid).
1Y return: 2.84% (bottom quartile).
Alpha: -2.49 (bottom quartile).
Sharpe: 0.75 (bottom quartile).
Information ratio: 0.59 (bottom quartile).

SBI Contra Fund

Highest AUM (₹49,111 Cr).
Established history (20+ yrs).
Rating: 3★ (bottom quartile).
Risk profile: Moderately High.
5Y return: 19.66% (upper mid).
3Y return: 16.99% (bottom quartile).
1Y return: 3.44% (lower mid).
Alpha: 0.13 (lower mid).
Sharpe: 0.97 (lower mid).
Information ratio: 1.01 (lower mid).

About the Fincash Research Team

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Data specialists processing NAVs, allocations, and risk metrics from Morning Star.

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Disclaimer

Content is for educational and informational purposes only and is not investment advice. Please consider your risk profile and consult a financial advisor before investing.

*List of funds based on Assets >= 100 Crore & Sorted on 3 year CAGR Returns.

1. Kotak India EQ Contra Fund

(Erstwhile Kotak Classic Equity Fund)

To generate capital appreciation from a diversified portfolio of equity and equity related securities. However, there is no assurance that the objective of the scheme will be realized.

Research Highlights for Kotak India EQ Contra Fund

Bottom quartile AUM (₹5,225 Cr).
Oldest track record among peers (20 yrs).
Rating: 3★ (lower mid).
Risk profile: Moderately High.
5Y return: 16.75% (lower mid).
3Y return: 19.61% (upper mid).
1Y return: 7.54% (upper mid).
Alpha: 4.55 (upper mid).
Sharpe: 1.47 (upper mid).
Information ratio: 1.30 (upper mid).

Below is the key information for Kotak India EQ Contra Fund

Kotak India EQ Contra Fund Growth
Launch Date	27 Jul 05
NAV (17 Apr 26)	₹149.457 ↑ 1.29 (0.87 %)
Net Assets (Cr)	₹5,225 on 28 Feb 26
Category	Equity - Contra
AMC	Kotak Mahindra Asset Management Co Ltd
Rating	☆☆☆
Risk	Moderately High
Expense Ratio	1.89
Sharpe Ratio	1.47
Information Ratio	1.3
Alpha Ratio	4.55
Min Investment	5,000
Min SIP Investment	1,000
Exit Load	0-1 Years (1%),1 Years and above(NIL)

Growth of 10,000 investment over the years.

Date	Value
31 Mar 21	₹10,000
31 Mar 22	₹11,856
31 Mar 23	₹12,355
31 Mar 24	₹18,333
31 Mar 25	₹19,664
31 Mar 26	₹19,532

Kotak India EQ Contra Fund SIP Returns

Total investment amount is ₹300,000
expected amount after 5 Years is ₹458,689.
Net Profit of ₹158,689 Invest Now

Returns for Kotak India EQ 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 Apr 26

Duration	Returns
1 Month	3.9%
3 Month	-3.7%
6 Month	-3.3%
1 Year	7.5%
3 Year	19.6%
5 Year	16.7%
10 Year
15 Year
Since launch	13.9%

Historical performance (Yearly) on absolute basis

Year	Returns
2025	7.4%
2024	22.1%
2023	35%
2022	7.4%
2021	30.2%
2020	15.2%
2019	10%
2018	2.6%
2017	35.4%
2016	7.1%

Fund Manager information for Kotak India EQ Contra Fund

Name	Since	Tenure
Shibani Kurian	9 May 19	6.9 Yr.

Data below for Kotak India EQ Contra Fund as on 28 Feb 26

Equity Sector Allocation

Sector	Value
Financial Services	32.29%
Industrials	12.46%
Health Care	11%
Consumer Cyclical	9.87%
Basic Materials	9.07%
Technology	8.03%
Energy	5.12%
Communication Services	4.18%
Consumer Defensive	3.26%
Utility	2.99%

Asset Allocation

Asset Class	Value
Cash	1.72%
Equity	98.28%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
HDFC Bank Ltd (Financial Services) Equity, Since 30 Sep 10 \| HDFCBANK	6%	₹274 Cr	3,746,864 ↑ 320,000
ICICI Bank Ltd (Financial Services) Equity, Since 30 Apr 18 \| ICICIBANK	5%	₹222 Cr	1,843,051 ↑ 95,000
State Bank of India (Financial Services) Equity, Since 31 Oct 16 \| SBIN	4%	₹172 Cr	1,752,000 ↓ -65,000
Reliance Industries Ltd (Energy) Equity, Since 30 Sep 08 \| RELIANCE	3%	₹159 Cr	1,181,648 ↑ 50,000
Infosys Ltd (Technology) Equity, Since 31 Oct 10 \| INFY	3%	₹142 Cr	1,135,075
NTPC Ltd (Utilities) Equity, Since 30 Nov 20 \| 532555	3%	₹140 Cr	3,780,000 ↑ 200,000
Hero MotoCorp Ltd (Consumer Cyclical) Equity, Since 31 Oct 22 \| HEROMOTOCO	3%	₹134 Cr	264,700
Bharti Airtel Ltd (Communication Services) Equity, Since 31 Oct 17 \| BHARTIARTL	3%	₹128 Cr	717,149
Shriram Finance Ltd (Financial Services) Equity, Since 30 Jun 23 \| SHRIRAMFIN	3%	₹125 Cr	1,437,305 ↓ -142,000
Larsen & Toubro Ltd (Industrials) Equity, Since 28 Feb 18 \| LT	2%	₹112 Cr	320,547

2. 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.

Research Highlights for Invesco India Contra Fund

Lower mid AUM (₹19,948 Cr).
Established history (19+ yrs).
Top rated.
Risk profile: Moderately High.
5Y return: 15.95% (bottom quartile).
3Y return: 18.99% (lower mid).
1Y return: 2.84% (bottom quartile).
Alpha: -2.49 (bottom quartile).
Sharpe: 0.75 (bottom quartile).
Information ratio: 0.59 (bottom quartile).

Below is the key information for Invesco India Contra Fund

Invesco India Contra Fund Growth
Launch Date	11 Apr 07
NAV (17 Apr 26)	₹129.94 ↑ 0.93 (0.72 %)
Net Assets (Cr)	₹19,948 on 28 Feb 26
Category	Equity - Contra
AMC	Invesco Asset Management (India) Private Ltd
Rating	☆☆☆☆
Risk	Moderately High
Expense Ratio	1.65
Sharpe Ratio	0.75
Information Ratio	0.59
Alpha Ratio	-2.49
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 Mar 21	₹10,000
31 Mar 22	₹11,969
31 Mar 23	₹12,091
31 Mar 24	₹17,241
31 Mar 25	₹19,660
31 Mar 26	₹18,490

Invesco India Contra Fund SIP Returns

Total investment amount is ₹300,000
expected amount after 5 Years is ₹447,579.
Net Profit of ₹147,579 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 Apr 26

Duration	Returns
1 Month	5.9%
3 Month	-4.9%
6 Month	-5.9%
1 Year	2.8%
3 Year	19%
5 Year	16%
10 Year
15 Year
Since launch	14.4%

Historical performance (Yearly) on absolute basis

Year	Returns
2025	3.1%
2024	30.1%
2023	28.8%
2022	3.8%
2021	29.6%
2020	21.2%
2019	5.9%
2018	-3.3%
2017	45.6%
2016	6.7%

Fund Manager information for Invesco India Contra Fund

Name	Since	Tenure
Taher Badshah	13 Jan 17	9.22 Yr.

Data below for Invesco India Contra Fund as on 28 Feb 26

Equity Sector Allocation

Sector	Value
Financial Services	30.65%
Consumer Cyclical	16.39%
Industrials	12.2%
Health Care	11.73%
Technology	9.87%
Energy	4.93%
Basic Materials	4.9%
Communication Services	2.65%
Real Estate	1.93%
Consumer Defensive	1.61%

Asset Allocation

Asset Class	Value
Cash	1.12%
Equity	98.86%
Other	0%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
HDFC Bank Ltd (Financial Services) Equity, Since 30 Apr 14 \| HDFCBANK	7%	₹1,161 Cr	15,869,516
ICICI Bank Ltd (Financial Services) Equity, Since 31 May 17 \| ICICIBANK	5%	₹898 Cr	7,447,650
Infosys Ltd (Technology) Equity, Since 30 Sep 13 \| INFY	4%	₹764 Cr	6,109,021 ↑ 281,218
Larsen & Toubro Ltd (Industrials) Equity, Since 30 Sep 20 \| LT	4%	₹666 Cr	1,900,679
Mahindra & Mahindra Ltd (Consumer Cyclical) Equity, Since 31 Oct 21 \| M&M	4%	₹657 Cr	2,222,444
Reliance Industries Ltd (Energy) Equity, Since 31 Oct 25 \| RELIANCE	4%	₹656 Cr	4,878,249
Axis Bank Ltd (Financial Services) Equity, Since 30 Jun 20 \| 532215	3%	₹604 Cr	5,201,150
Bharti Airtel Ltd (Communication Services) Equity, Since 31 Mar 26 \| BHARTIARTL	3%	₹469 Cr	2,628,845 ↑ 2,628,845
Cholamandalam Investment and Finance Co Ltd (Financial Services) Equity, Since 31 Dec 21 \| CHOLAFIN	2%	₹395 Cr	2,912,482
Apollo Hospitals Enterprise Ltd (Healthcare) Equity, Since 31 Mar 24 \| APOLLOHOSP	2%	₹382 Cr	514,459 ↓ -55,305

3. SBI Contra Fund

To provide the investors maximum growth opportunity through equity investments in stocks of growth oriented sectors of the economy.

Research Highlights for SBI Contra Fund

Highest AUM (₹49,111 Cr).
Established history (20+ yrs).
Rating: 3★ (bottom quartile).
Risk profile: Moderately High.
5Y return: 19.66% (upper mid).
3Y return: 16.99% (bottom quartile).
1Y return: 3.44% (lower mid).
Alpha: 0.13 (lower mid).
Sharpe: 0.97 (lower mid).
Information ratio: 1.01 (lower mid).

Below is the key information for SBI Contra Fund

SBI Contra Fund Growth
Launch Date	6 May 05
NAV (16 Apr 26)	₹371.699 ↓ -0.38 (-0.10 %)
Net Assets (Cr)	₹49,111 on 28 Feb 26
Category	Equity - Contra
AMC	SBI Funds Management Private Limited
Rating	☆☆☆
Risk	Moderately High
Expense Ratio	1.53
Sharpe Ratio	0.97
Information Ratio	1.01
Alpha Ratio	0.13
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 Mar 21	₹10,000
31 Mar 22	₹13,036
31 Mar 23	₹14,767
31 Mar 24	₹21,843
31 Mar 25	₹23,379
31 Mar 26	₹22,627

SBI Contra Fund SIP Returns

Total investment amount is ₹300,000
expected amount after 5 Years is ₹493,520.
Net Profit of ₹193,520 Invest Now

Returns for SBI 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 Apr 26

Duration	Returns
1 Month	2.3%
3 Month	-5.3%
6 Month	-3.6%
1 Year	3.4%
3 Year	17%
5 Year	19.7%
10 Year
15 Year
Since launch	14.5%

Historical performance (Yearly) on absolute basis

Year	Returns
2025	6.1%
2024	18.8%
2023	38.2%
2022	12.8%
2021	49.9%
2020	30.6%
2019	-1%
2018	-14.3%
2017	40.2%
2016	2.4%

Fund Manager information for SBI Contra Fund

Name	Since	Tenure
Dinesh Balachandran	7 May 18	7.9 Yr.
Pradeep Kesavan	1 Dec 23	2.33 Yr.

Data below for SBI Contra Fund as on 28 Feb 26

Equity Sector Allocation

Sector	Value
Financial Services	22.41%
Basic Materials	10.15%
Health Care	9.12%
Energy	9.1%
Consumer Cyclical	8.05%
Technology	7.46%
Utility	4.77%
Consumer Defensive	4.69%
Communication Services	3.97%
Industrials	3.49%
Real Estate	1.47%

Asset Allocation

Asset Class	Value
Cash	5.95%
Equity	91.94%
Debt	2.11%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
Nifty Index 28-04-2026 Derivatives, Since 31 Mar 26 \| -	8%	₹3,365 Cr	1,500,265 ↑ 1,500,265
HDFC Bank Ltd (Financial Services) Equity, Since 31 Aug 16 \| HDFCBANK	7%	₹2,959 Cr	40,449,258
Reliance Industries Ltd (Energy) Equity, Since 31 Mar 23 \| RELIANCE	5%	₹2,381 Cr	17,717,567
Biocon Ltd (Healthcare) Equity, Since 30 Jun 21 \| BIOCON	3%	₹1,446 Cr	40,073,925
Tata Steel Ltd (Basic Materials) Equity, Since 31 Jul 22 \| TATASTEEL	3%	₹1,421 Cr	74,067,300
ICICI Bank Ltd (Financial Services) Equity, Since 28 Feb 17 \| ICICIBANK	3%	₹1,324 Cr	10,981,550 ↑ 4,000,000
Indus Towers Ltd Ordinary Shares (Communication Services) Equity, Since 30 Jun 24 \| 534816	3%	₹1,174 Cr	28,086,692
Punjab National Bank (Financial Services) Equity, Since 30 Sep 22 \| 532461	3%	₹1,165 Cr	115,846,832
Kotak Mahindra Bank Ltd (Financial Services) Equity, Since 31 Mar 24 \| KOTAKBANK	3%	₹1,132 Cr	32,028,840
Torrent Power Ltd (Utilities) Equity, Since 31 Oct 21 \| 532779	2%	₹912 Cr	6,982,410 ↑ 436,607

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.

Taxation on Contra Funds

As they are a class of equity mutual funds, they are essentially taxed like any other equity fund. Short-term Capital Gains (units realised within a year) are taxed at a rate of 15% irrespective of investors’ income tax slab rate. Long-term capital gains of up to Rs 1 lakh a year are made tax-free (units realised after one year of holding). Any gains exceeding this are taxed at 15%. There is no benefit of indexation provided.

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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.