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.
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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 (%) 2018 (%) Invesco India Contra Fund Growth ₹47.02
₹3,724 -2.4 2.2 0.6 12.8 14 -3.3 Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 15 Jul 19
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 13.5% since its launch. Ranked 11 in
Contra category. Return for 2018 was -3.3% , 2017 was 45.6% and 2016 was 6.7% .
Invesco India Contra Fund
Launch Date 11 Apr 07 NAV (15 Jul 19) ₹47.02 ↑ 0.04 (0.09 %) Net Assets (Cr) ₹3,724 on 30 Apr 19 Category Equity - Contra AMC Invesco Asset Management (India) Private Ltd Rating ☆☆☆☆ Risk Moderately High Expense Ratio 2.68 Sharpe Ratio -0.19 Information Ratio 0.72 Alpha Ratio -2.47 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 Jun 14 ₹10,000 30 Jun 15 ₹12,361 30 Jun 16 ₹12,936 30 Jun 17 ₹15,829 30 Jun 18 ₹18,500 30 Jun 19 ₹19,409
Returns for Invesco India Contra Fund
absolute basis & more than 1 year are on
CAGR (Compound Annual Growth Rate) basis. as on 15 Jul 19
Duration Returns 1 Month -2.1% 3 Month -2.4% 6 Month 2.2% 1 Year 0.6% 3 Year 12.8% 5 Year 14% 10 Year 15 Year Since launch 13.5%
Historical performance (Yearly) on absolute basis
Year Returns 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
Name Since Tenure Amit Ganatra 14 Aug 12 6.8 Yr. Taher Badshah 10 Jan 17 2.39 Yr.
Data below for Invesco India Contra Fund as on 30 Apr 19
Equity Sector Allocation
Sector Value Financial Services 34.75% Technology 11.96% Consumer Cyclical 10.66% Industrials 9.58% Health Care 6.87% Energy 6.04% Utility 5.24% Basic Materials 5.1% Consumer Defensive 2.9% Communication Services 2.32%
Asset Class Value Cash 4.57% Equity 95.43%
Top Securities Holdings / Portfolio
Name Holding Value Quantity HDFC Bank Ltd (Financial Services)
Equity, Since 30 Apr 14 | HDFCBANK
9% ₹349 Cr 1,438,381 ICICI Bank Ltd (Financial Services)
Equity, Since 31 May 17 | ICICIBANK
9% ₹334 Cr 7,885,937 Triparty Repo
CBLO/Reverse Repo | -
5% ₹208 Cr Larsen & Toubro Ltd (Industrials)
Equity, Since 28 Feb 18 | LT
5% ₹203 Cr 1,300,985
Infosys Ltd (Technology)
Equity, Since 30 Sep 13 | INFY
4% ₹172 Cr 2,329,929
Axis Bank Ltd (Financial Services)
Equity, Since 30 Sep 18 | 532215
4% ₹150 Cr 1,858,765
State Bank of India (Financial Services)
Equity, Since 31 May 18 | SBIN
3% ₹137 Cr 3,888,281
Equitas Holding Ltd (Financial Services)
Equity, Since 31 Dec 17 | 539844
3% ₹115 Cr 8,270,277 Hindustan Petroleum Corp Ltd (Energy)
Equity, Since 31 Mar 19 | HINDPETRO
2% ₹94 Cr 2,902,162
Exide Industries Ltd (Consumer Cyclical)
Equity, Since 31 Jan 17 | 500086
2% ₹93 Cr 4,344,940
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.
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