+91-22-62820123
Table of Contents
Top 3 Best Contra Funds to Invest in 2021
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.
Talk to our investment specialist
Best Performing Contra Funds to Invest in FY 21 - 22
To provide the investors maximum growth opportunity through equity
investments in stocks of growth oriented sectors of the economy. SBI Contra Fund is a Equity - Contra fund was launched on 6 May 05. It is a fund with Moderately High risk and has given a Below is the key information for SBI Contra Fund Returns up to 1 year are on (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. Kotak India EQ Contra Fund is a Equity - Contra fund was launched on 27 Jul 05. It is a fund with Moderately High risk and has given a Below is the key information for Kotak India EQ Contra Fund Returns up to 1 year are on 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 Fund NAV Net Assets (Cr) 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 5 YR (%) 2020 (%) SBI Contra Fund Growth ₹203.902
↑ 1.09 ₹2,823 13 35 90.2 26.2 16.2 30.6 Kotak India EQ Contra Fund Growth ₹86.904
↑ 0.79 ₹1,133 13.1 27 58.7 21.9 17.7 15.2 Invesco India Contra Fund Growth ₹80.3
↑ 0.42 ₹8,199 13 30.1 58.4 21.7 17.8 21.2 Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 14 Oct 21 Assets >= 100 Crore & Sorted on 3 year CAGR Returns.
1. SBI Contra Fund
CAGR/Annualized return of 16.6% since its launch. Ranked 48 in Contra category. Return for 2020 was 30.6% , 2019 was -1% and 2018 was -14.3% . SBI Contra Fund
Growth Launch Date 6 May 05 NAV (14 Oct 21) ₹203.902 ↑ 1.09 (0.54 %) Net Assets (Cr) ₹2,823 on 31 Aug 21 Category Equity - Contra AMC SBI Funds Management Private Limited Rating ☆☆☆ Risk Moderately High Expense Ratio 2.29 Sharpe Ratio 3.4 Information Ratio 0.25 Alpha Ratio 14.52 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 30 Sep 16 ₹10,000 30 Sep 17 ₹11,341 30 Sep 18 ₹10,790 30 Sep 19 ₹10,687 30 Sep 20 ₹10,990 30 Sep 21 ₹20,448 Returns for SBI Contra Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 14 Oct 21 Duration Returns 1 Month 6.4% 3 Month 13% 6 Month 35% 1 Year 90.2% 3 Year 26.2% 5 Year 16.2% 10 Year 15 Year Since launch 16.6% Historical performance (Yearly) on absolute basis
Year Returns 2020 30.6% 2019 -1% 2018 -14.3% 2017 40.2% 2016 2.4% 2015 -0.1% 2014 47.7% 2013 -1.7% 2012 34.2% 2011 -28.2% Fund Manager information for SBI Contra Fund
Name Since Tenure Dinesh Balachandran 7 May 18 3.32 Yr. Data below for SBI Contra Fund as on 31 Aug 21
Equity Sector Allocation
Sector Value Industrials 20.32% Financial Services 18.61% Consumer Cyclical 10.09% Basic Materials 8.48% Technology 7.38% Health Care 7.18% Communication Services 5.5% Utility 5% Real Estate 4.92% Energy 4.61% Consumer Defensive 2.01% Asset Allocation
Asset Class Value Cash 5.89% Equity 94.11% Top Securities Holdings / Portfolio
Name Holding Value Quantity ICICI Bank Ltd (Financial Services)
Equity, Since 28 Feb 17 | ICICIBANK4% ₹104 Cr 1,443,921 Tube Investments of India Ltd Ordinary Shares (Consumer Cyclical)
Equity, Since 31 Jan 21 | 5407624% ₹104 Cr 760,201 HCL Technologies Ltd (Technology)
Equity, Since 31 Aug 13 | HCLTECH3% ₹97 Cr 820,000
↑ 370,000 Carborundum Universal Ltd (Industrials)
Equity, Since 31 May 19 | 5133753% ₹95 Cr 1,149,083 Sun Pharmaceuticals Industries Ltd (Healthcare)
Equity, Since 30 Apr 20 | SUNPHARMA3% ₹82 Cr 1,037,500 Infosys Ltd (Technology)
Equity, Since 28 Feb 19 | INFY3% ₹78 Cr 455,000 Hindustan Aeronautics Ltd Ordinary Shares (Industrials)
Equity, Since 30 Apr 21 | 5411543% ₹76 Cr 550,000 Axis Bank Ltd (Financial Services)
Equity, Since 31 May 19 | 5322153% ₹74 Cr 940,000 Bharti Airtel Ltd (Communication Services)
Equity, Since 31 Mar 17 | BHARTIARTL2% ₹66 Cr 993,581
↑ 250,000 MTAR Technologies Ltd (Industrials)
Equity, Since 28 Feb 21 | 5432702% ₹66 Cr 530,264 2. Kotak India EQ Contra Fund
CAGR/Annualized return of 14.3% since its launch. Ranked 30 in Contra category. Return for 2020 was 15.2% , 2019 was 10% and 2018 was 2.6% . Kotak India EQ Contra Fund
Growth Launch Date 27 Jul 05 NAV (14 Oct 21) ₹86.904 ↑ 0.79 (0.92 %) Net Assets (Cr) ₹1,133 on 31 Aug 21 Category Equity - Contra AMC Kotak Mahindra Asset Management Co Ltd Rating ☆☆☆ Risk Moderately High Expense Ratio 2.2 Sharpe Ratio 3.2 Information Ratio 0.05 Alpha Ratio 10.6 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 30 Sep 16 ₹10,000 30 Sep 17 ₹11,842 30 Sep 18 ₹13,237 30 Sep 19 ₹13,918 30 Sep 20 ₹13,821 30 Sep 21 ₹22,035 Returns for Kotak India EQ Contra Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 14 Oct 21 Duration Returns 1 Month 5.4% 3 Month 13.1% 6 Month 27% 1 Year 58.7% 3 Year 21.9% 5 Year 17.7% 10 Year 15 Year Since launch 14.3% Historical performance (Yearly) on absolute basis
Year Returns 2020 15.2% 2019 10% 2018 2.6% 2017 35.4% 2016 7.1% 2015 -3.4% 2014 39.3% 2013 7.4% 2012 33.2% 2011 -23.8% Fund Manager information for Kotak India EQ Contra Fund
Name Since Tenure Shibani Kurian 9 May 19 2.32 Yr. Data below for Kotak India EQ Contra Fund as on 31 Aug 21
Equity Sector Allocation
Sector Value Financial Services 29.67% Technology 13.86% Basic Materials 11.45% Industrials 9.68% Energy 8.04% Consumer Cyclical 6.76% Health Care 5.74% Consumer Defensive 4.33% Utility 4.21% Communication Services 3.7% Real Estate 1.08% Asset Allocation
Asset Class Value Cash 1.09% Equity 98.91% Debt 0% Top Securities Holdings / Portfolio
Name Holding Value Quantity ICICI Bank Ltd (Financial Services)
Equity, Since 30 Apr 18 | ICICIBANK8% ₹92 Cr 1,276,051 Infosys Ltd (Technology)
Equity, Since 31 Oct 10 | INFY7% ₹80 Cr 468,500
↓ -26,000 HDFC Bank Ltd (Financial Services)
Equity, Since 30 Sep 10 | HDFCBANK7% ₹76 Cr 479,636
↑ 72,700 Reliance Industries Ltd (Energy)
Equity, Since 30 Sep 08 | RELIANCE6% ₹65 Cr 289,785 State Bank of India (Financial Services)
Equity, Since 31 Oct 16 | SBIN4% ₹46 Cr 1,091,000 UltraTech Cement Ltd (Basic Materials)
Equity, Since 30 Jun 19 | ULTRACEMCO4% ₹44 Cr 56,000 Tata Consultancy Services Ltd (Technology)
Equity, Since 30 Nov 12 | TCS4% ₹43 Cr 114,441
↑ 17,300 Larsen & Toubro Ltd (Industrials)
Equity, Since 28 Feb 18 | LT4% ₹41 Cr 245,895 Axis Bank Ltd (Financial Services)
Equity, Since 30 Nov 18 | 5322153% ₹35 Cr 450,000 Bharti Airtel Ltd (Communication Services)
Equity, Since 31 Oct 17 | BHARTIARTL3% ₹33 Cr 502,149 3. Invesco India Contra Fund
CAGR/Annualized return of 15.4% since its launch. Ranked 11 in Contra category. Return for 2020 was 21.2% , 2019 was 5.9% and 2018 was -3.3% . Invesco India Contra Fund
Growth Launch Date 11 Apr 07 NAV (14 Oct 21) ₹80.3 ↑ 0.42 (0.53 %) Net Assets (Cr) ₹8,199 on 31 Aug 21 Category Equity - Contra AMC Invesco Asset Management (India) Private Ltd Rating ☆☆☆☆ Risk Moderately High Expense Ratio 1.62 Sharpe Ratio 2.74 Information Ratio -0.2 Alpha Ratio -2.37 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 30 Sep 16 ₹10,000 30 Sep 17 ₹11,799 30 Sep 18 ₹13,228 30 Sep 19 ₹13,438 30 Sep 20 ₹14,039 30 Sep 21 ₹22,018 Returns for Invesco India Contra Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 14 Oct 21 Duration Returns 1 Month 6.1% 3 Month 13% 6 Month 30.1% 1 Year 58.4% 3 Year 21.7% 5 Year 17.8% 10 Year 15 Year Since launch 15.4% Historical performance (Yearly) on absolute basis
Year Returns 2020 21.2% 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% Fund Manager information for Invesco India Contra Fund
Name Since Tenure Taher Badshah 10 Jan 17 4.64 Yr. Dhimant Kothari 19 May 20 1.29 Yr. Data below for Invesco India Contra Fund as on 31 Aug 21
Equity Sector Allocation
Sector Value Financial Services 32.14% Industrials 15.22% Technology 13.66% Basic Materials 8.85% Health Care 7.42% Energy 6.5% Consumer Cyclical 5.84% Utility 5.28% Communication Services 2.42% Real Estate 1.42% Asset Allocation
Asset Class Value Cash 1.27% Equity 98.73% Top Securities Holdings / Portfolio
Name Holding Value Quantity ICICI Bank Ltd (Financial Services)
Equity, Since 31 May 17 | ICICIBANK8% ₹672 Cr 9,342,377 HDFC Bank Ltd (Financial Services)
Equity, Since 30 Apr 14 | HDFCBANK7% ₹591 Cr 3,739,991
↑ 160,164 Infosys Ltd (Technology)
Equity, Since 30 Sep 13 | INFY6% ₹529 Cr 3,099,984 Axis Bank Ltd (Financial Services)
Equity, Since 30 Jun 20 | 5322154% ₹359 Cr 4,560,268 Reliance Industries Ltd (Energy)
Equity, Since 31 Aug 19 | RELIANCE4% ₹342 Cr 1,512,946 State Bank of India (Financial Services)
Equity, Since 28 Feb 21 | SBIN4% ₹331 Cr 7,767,195
↑ 562,326 Sun Pharmaceuticals Industries Ltd (Healthcare)
Equity, Since 30 Nov 16 | SUNPHARMA4% ₹318 Cr 4,010,197
↑ 105,536 UltraTech Cement Ltd (Basic Materials)
Equity, Since 30 Sep 19 | ULTRACEMCO4% ₹309 Cr 394,237 Larsen & Toubro Ltd (Industrials)
Equity, Since 30 Sep 20 | LT4% ₹292 Cr 1,746,304
↑ 48,113 Tech Mahindra Ltd (Technology)
Equity, Since 30 Sep 18 | 5327553% ₹250 Cr 1,727,979
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.
How to Invest in Contra Funds Online?
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!
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.
AMFI Registration No. 112358 | CIN: U74999MH2016PTC282153
Shepard Technologies Pvt. Ltd. (with ARN code 112358) makes no warranties or representations, express or implied, on products offered through the platform. It accepts no liability for any damages or losses, however caused, in connection with the use of, or on the reliance of its product or related services. Terms and conditions of the website are applicable.
©2021 Shepard Technologies Private Limited. All Rights Reserved
I got fairly clear idea about the investment philosophy of the contra fund also the high risk involved as well as unlikely good returns in short or medium duration