Top 3 Best Contra Funds to Invest in 2026

Updated on October 4, 2026 , 37751 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 (%)	2024 (%)
Kotak India EQ Contra Fund Growth	₹146.909 ↑ 1.13	₹5,511	-5.1	4.9	-3.8	12.8	11.9	7.4
Invesco India Contra Fund Growth	₹129.5 ↑ 1.06	₹20,644	-3.5	7.3	-4.1	12.1	11	3.1
SBI Contra Fund Growth	₹358.646 ↑ 0.94	₹47,589	-4.6	1.8	-5.6	9	12.7	6.1
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 6 Oct 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 (₹5,511 Cr).	Lower mid AUM (₹20,644 Cr).	Highest AUM (₹47,589 Cr).
Point 2	Oldest track record among peers (21 yrs).	Established history (19+ yrs).	Established history (21+ 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: 11.90% (lower mid).	5Y return: 11.03% (bottom quartile).	5Y return: 12.70% (upper mid).
Point 6	3Y return: 12.75% (upper mid).	3Y return: 12.07% (lower mid).	3Y return: 8.97% (bottom quartile).
Point 7	1Y return: -3.82% (upper mid).	1Y return: -4.13% (lower mid).	1Y return: -5.58% (bottom quartile).
Point 8	Alpha: 0.25 (upper mid).	Alpha: -0.09 (bottom quartile).	Alpha: 0.00 (lower mid).
Point 9	Sharpe: 0.08 (upper mid).	Sharpe: 0.03 (lower mid).	Sharpe: -0.19 (bottom quartile).
Point 10	Information ratio: 1.06 (upper mid).	Information ratio: 0.88 (lower mid).	Information ratio: 0.00 (bottom quartile).

Kotak India EQ Contra Fund

Bottom quartile AUM (₹5,511 Cr).
Oldest track record among peers (21 yrs).
Rating: 3★ (lower mid).
Risk profile: Moderately High.
5Y return: 11.90% (lower mid).
3Y return: 12.75% (upper mid).
1Y return: -3.82% (upper mid).
Alpha: 0.25 (upper mid).
Sharpe: 0.08 (upper mid).
Information ratio: 1.06 (upper mid).

Invesco India Contra Fund

Lower mid AUM (₹20,644 Cr).
Established history (19+ yrs).
Top rated.
Risk profile: Moderately High.
5Y return: 11.03% (bottom quartile).
3Y return: 12.07% (lower mid).
1Y return: -4.13% (lower mid).
Alpha: -0.09 (bottom quartile).
Sharpe: 0.03 (lower mid).
Information ratio: 0.88 (lower mid).

SBI Contra Fund

Highest AUM (₹47,589 Cr).
Established history (21+ yrs).
Rating: 3★ (bottom quartile).
Risk profile: Moderately High.
5Y return: 12.70% (upper mid).
3Y return: 8.97% (bottom quartile).
1Y return: -5.58% (bottom quartile).
Alpha: 0.00 (lower mid).
Sharpe: -0.19 (bottom quartile).
Information ratio: 0.00 (bottom quartile).

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 (₹5,511 Cr).
Oldest track record among peers (21 yrs).
Rating: 3★ (lower mid).
Risk profile: Moderately High.
5Y return: 11.90% (lower mid).
3Y return: 12.75% (upper mid).
1Y return: -3.82% (upper mid).
Alpha: 0.25 (upper mid).
Sharpe: 0.08 (upper mid).
Information ratio: 1.06 (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 (06 Oct 26)	₹146.909 ↑ 1.13 (0.78 %)
Net Assets (Cr)	₹5,511 on 31 Aug 26
Category	Equity - Contra
AMC	Kotak Mahindra Asset Management Co Ltd
Rating	☆☆☆
Risk	Moderately High
Expense Ratio	1.89
Sharpe Ratio	0.08
Information Ratio	1.06
Alpha Ratio	0.25
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 21	₹10,000
30 Sep 22	₹9,980
30 Sep 23	₹12,340
30 Sep 24	₹18,801
30 Sep 25	₹17,939
30 Sep 26	₹17,493

Kotak India EQ Contra Fund SIP Returns

Total investment amount is ₹300,000
expected amount after 5 Years is ₹405,518.
Net Profit of ₹105,518 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 6 Oct 26

Duration	Returns
1 Month	-4.4%
3 Month	-5.1%
6 Month	4.9%
1 Year	-3.8%
3 Year	12.8%
5 Year	11.9%
10 Year
15 Year
Since launch	13.5%

Historical performance (Yearly) on absolute basis

Year	Returns
2024	7.4%
2023	22.1%
2022	35%
2021	7.4%
2020	30.2%
2019	15.2%
2018	10%
2017	2.6%
2016	35.4%
2015	7.1%

Fund Manager information for Kotak India EQ Contra Fund

Name	Since	Tenure
Shibani Kurian	9 May 19	7.32 Yr.

Data below for Kotak India EQ Contra Fund as on 31 Aug 26

Equity Sector Allocation

Sector	Value
Financial Services	31.94%
Industrials	14.35%
Health Care	13%
Consumer Cyclical	11.23%
Basic Materials	7.46%
Technology	7.43%
Communication Services	4.03%
Consumer Defensive	2.74%
Energy	2.74%
Utility	2.35%
Real Estate	1.01%

Asset Allocation

Asset Class	Value
Cash	1.71%
Equity	98.29%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
ICICI Bank Ltd (Financial Services) Equity, Since 30 Apr 18 \| ICICIBANK	6%	₹339 Cr	2,333,051
HDFC Bank Ltd (Financial Services) Equity, Since 30 Sep 10 \| HDFCBANK	4%	₹216 Cr	3,046,864
State Bank of India (Financial Services) Equity, Since 31 Oct 16 \| SBIN	3%	₹186 Cr	1,752,000
Shriram Finance Ltd (Financial Services) Equity, Since 30 Jun 23 \| SHRIRAMFIN	3%	₹160 Cr	1,437,305
Reliance Industries Ltd (Energy) Equity, Since 30 Sep 08 \| RELIANCE	3%	₹151 Cr	1,181,648
Hero MotoCorp Ltd (Consumer Cyclical) Equity, Since 31 Oct 22 \| HEROMOTOCO	3%	₹144 Cr	264,700
Larsen & Toubro Ltd (Industrials) Equity, Since 28 Feb 18 \| LT	3%	₹140 Cr	345,547
Swiggy Ltd (Consumer Cyclical) Equity, Since 30 Nov 24 \| SWIGGY	2%	₹132 Cr	4,699,328 ↑ 270,000
Bharti Airtel Ltd (Communication Services) Equity, Since 31 Oct 17 \| BHARTIARTL	2%	₹130 Cr	717,149
NTPC Ltd (Utilities) Equity, Since 30 Nov 20 \| 532555	2%	₹129 Cr	3,955,000

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 (₹20,644 Cr).
Established history (19+ yrs).
Top rated.
Risk profile: Moderately High.
5Y return: 11.03% (bottom quartile).
3Y return: 12.07% (lower mid).
1Y return: -4.13% (lower mid).
Alpha: -0.09 (bottom quartile).
Sharpe: 0.03 (lower mid).
Information ratio: 0.88 (lower mid).

Below is the key information for Invesco India Contra Fund

Invesco India Contra Fund Growth
Launch Date	11 Apr 07
NAV (06 Oct 26)	₹129.5 ↑ 1.06 (0.83 %)
Net Assets (Cr)	₹20,644 on 31 Aug 26
Category	Equity - Contra
AMC	Invesco Asset Management (India) Private Ltd
Rating	☆☆☆☆
Risk	Moderately High
Expense Ratio	1.59
Sharpe Ratio	0.03
Information Ratio	0.88
Alpha Ratio	-0.09
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 21	₹10,000
30 Sep 22	₹10,117
30 Sep 23	₹12,001
30 Sep 24	₹18,402
30 Sep 25	₹17,282
30 Sep 26	₹16,796

Invesco India Contra Fund SIP Returns

Total investment amount is ₹300,000
expected amount after 5 Years is ₹405,518.
Net Profit of ₹105,518 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 6 Oct 26

Duration	Returns
1 Month	-5%
3 Month	-3.5%
6 Month	7.3%
1 Year	-4.1%
3 Year	12.1%
5 Year	11%
10 Year
15 Year
Since launch	14%

Historical performance (Yearly) on absolute basis

Year	Returns
2024	3.1%
2023	30.1%
2022	28.8%
2021	3.8%
2020	29.6%
2019	21.2%
2018	5.9%
2017	-3.3%
2016	45.6%
2015	6.7%

Fund Manager information for Invesco India Contra Fund

Name	Since	Tenure
Taher Badshah	13 Jan 17	9.64 Yr.

Data below for Invesco India Contra Fund as on 31 Aug 26

Equity Sector Allocation

Sector	Value
Financial Services	28.71%
Consumer Cyclical	15.83%
Industrials	14.56%
Health Care	12.87%
Technology	10.81%
Basic Materials	4.69%
Energy	3.27%
Real Estate	2.99%
Communication Services	2.31%
Consumer Defensive	1.22%

Asset Allocation

Asset Class	Value
Cash	0.98%
Equity	99.01%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
ICICI Bank Ltd (Financial Services) Equity, Since 31 May 17 \| ICICIBANK	6%	₹1,250 Cr	8,598,032 ↓ -411,552
Larsen & Toubro Ltd (Industrials) Equity, Since 30 Sep 20 \| LT	5%	₹1,002 Cr	2,477,814
State Bank of India (Financial Services) Equity, Since 31 May 26 \| SBIN	3%	₹652 Cr	6,155,029 ↑ 461,177
Mahindra & Mahindra Ltd (Consumer Cyclical) Equity, Since 31 Oct 21 \| M&M	3%	₹633 Cr	1,927,187 ↓ -176,659
Coforge Ltd (Technology) Equity, Since 31 Mar 22 \| COFORGE	3%	₹548 Cr	2,758,558
Cholamandalam Investment and Finance Co Ltd (Financial Services) Equity, Since 31 Dec 21 \| CHOLAFIN	3%	₹541 Cr	2,912,482
Infosys Ltd (Technology) Equity, Since 30 Sep 13 \| INFY	3%	₹528 Cr	4,653,551
Axis Bank Ltd (Financial Services) Equity, Since 30 Jun 20 \| 532215	2%	₹486 Cr	3,741,191 ↓ -364,164
Bharti Airtel Ltd (Communication Services) Equity, Since 31 Mar 26 \| BHARTIARTL	2%	₹476 Cr	2,628,845
The Federal Bank Ltd (Financial Services) Equity, Since 30 Nov 22 \| FEDERALBNK	2%	₹460 Cr	12,908,524

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 (₹47,589 Cr).
Established history (21+ yrs).
Rating: 3★ (bottom quartile).
Risk profile: Moderately High.
5Y return: 12.70% (upper mid).
3Y return: 8.97% (bottom quartile).
1Y return: -5.58% (bottom quartile).
Alpha: 0.00 (lower mid).
Sharpe: -0.19 (bottom quartile).
Information ratio: 0.00 (bottom quartile).

Below is the key information for SBI Contra Fund

SBI Contra Fund Growth
Launch Date	6 May 05
NAV (05 Oct 26)	₹358.646 ↑ 0.94 (0.26 %)
Net Assets (Cr)	₹47,589 on 31 Aug 26
Category	Equity - Contra
AMC	SBI Funds Management Private Limited
Rating	☆☆☆
Risk	Moderately High
Expense Ratio	1.53
Sharpe Ratio	-0.19
Information Ratio	0
Alpha Ratio	0
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 21	₹10,000
30 Sep 22	₹11,130
30 Sep 23	₹14,358
30 Sep 24	₹20,702
30 Sep 25	₹19,268
30 Sep 26	₹18,520

SBI Contra Fund SIP Returns

Total investment amount is ₹300,000
expected amount after 5 Years is ₹415,684.
Net Profit of ₹115,684 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 6 Oct 26

Duration	Returns
1 Month	-4.8%
3 Month	-4.6%
6 Month	1.8%
1 Year	-5.6%
3 Year	9%
5 Year	12.7%
10 Year
15 Year
Since launch	14%

Historical performance (Yearly) on absolute basis

Year	Returns
2024	6.1%
2023	18.8%
2022	38.2%
2021	12.8%
2020	49.9%
2019	30.6%
2018	-1%
2017	-14.3%
2016	40.2%
2015	2.4%

Fund Manager information for SBI Contra Fund

Name	Since	Tenure
Dinesh Balachandran	7 May 18	8.32 Yr.

Data below for SBI Contra Fund as on 31 Aug 26

Equity Sector Allocation

Sector	Value
Financial Services	24.16%
Basic Materials	9.79%
Consumer Cyclical	8.95%
Health Care	8.84%
Energy	7.64%
Technology	7.18%
Utility	7.16%
Industrials	6.99%
Consumer Defensive	4.16%
Communication Services	3.82%
Real Estate	1.52%

Asset Allocation

Asset Class	Value
Cash	4.31%
Equity	95.69%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
Reliance Industries Ltd (Energy) Equity, Since 31 Mar 23 \| RELIANCE	5%	₹2,263 Cr	17,717,567
ICICI Bank Ltd (Financial Services) Equity, Since 28 Feb 17 \| ICICIBANK	5%	₹2,164 Cr	14,881,550
HDFC Bank Ltd (Financial Services) Equity, Since 31 Aug 16 \| HDFCBANK	5%	₹2,159 Cr	30,449,258
Biocon Ltd (Healthcare) Equity, Since 30 Jun 21 \| BIOCON	3%	₹1,651 Cr	40,073,925
Bank Nifty Index 29-09-2026 - \| -	3%	₹1,389 Cr	240,000 ↑ 240,000
Kotak Mahindra Bank Ltd (Financial Services) Equity, Since 31 Mar 24 \| KOTAKBANK	3%	₹1,367 Cr	32,585,889 ↑ 557,049
Punjab National Bank (Financial Services) Equity, Since 30 Sep 22 \| 532461	3%	₹1,323 Cr	115,846,832
Indus Towers Ltd Ordinary Shares (Communication Services) Equity, Since 30 Jun 24 \| 534816	3%	₹1,249 Cr	32,126,692
Nifty Index 29-09-2026 - \| -	3%	₹1,213 Cr	499,980 ↑ 499,980
GAIL (India) Ltd (Utilities) Equity, Since 28 Feb 21 \| 532155	2%	₹1,092 Cr	61,513,788

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.