+91-22-48913909Top 3 Best Contra Funds to Invest in 2026
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
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 (%) Invesco India Contra Fund Growth ₹132.34
↑ 1.38 ₹19,248 -3.4 2.8 -3.8 13.6 10.9 3.1 Kotak India EQ Contra Fund Growth ₹147.565
↑ 1.69 ₹5,196 -5.2 -1.2 -4.6 13 11.7 7.4 SBI Contra Fund Growth ₹364.835
↑ 2.89 ₹45,068 -5.1 -2 -7.2 9.8 12.5 6.1 Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 4 Nov 26 Research Highlights & Commentary of 3 Funds showcased
Commentary Invesco India Contra Fund Kotak India EQ Contra Fund SBI Contra Fund Point 1 Lower mid AUM (₹19,248 Cr). Bottom quartile AUM (₹5,196 Cr). Highest AUM (₹45,068 Cr). Point 2 Established history (19+ yrs). Oldest track record among peers (21 yrs). Established history (21+ yrs). Point 3 Top rated. Rating: 3★ (lower mid). Rating: 3★ (bottom quartile). Point 4 Risk profile: Moderately High. Risk profile: Moderately High. Risk profile: Moderately High. Point 5 5Y return: 10.87% (bottom quartile). 5Y return: 11.68% (lower mid). 5Y return: 12.52% (upper mid). Point 6 3Y return: 13.61% (upper mid). 3Y return: 12.99% (lower mid). 3Y return: 9.79% (bottom quartile). Point 7 1Y return: -3.84% (upper mid). 1Y return: -4.56% (lower mid). 1Y return: -7.20% (bottom quartile). Point 8 Alpha: -0.21 (lower mid). Alpha: -0.87 (bottom quartile). Alpha: 0.00 (upper mid). Point 9 Sharpe: -0.34 (upper mid). Sharpe: -0.36 (lower mid). Sharpe: -0.51 (bottom quartile). Point 10 Information ratio: 0.67 (lower mid). Information ratio: 0.90 (upper mid). Information ratio: 0.00 (bottom quartile). Invesco India Contra Fund
Kotak India EQ Contra Fund
SBI Contra Fund
*List of funds based 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. Research Highlights for Invesco India Contra Fund Below is the key information for Invesco India 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. Research Highlights for Kotak India EQ Contra Fund Below is the key information for Kotak India EQ Contra Fund Returns up to 1 year are on 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 Below is the key information for SBI Contra Fund Returns up to 1 year are on Assets >= 100 Crore & Sorted on 3 year CAGR Returns.
1. Invesco India Contra Fund
Invesco India Contra Fund
Growth Launch Date 11 Apr 07 NAV (04 Nov 26) ₹132.34 ↑ 1.38 (1.05 %) Net Assets (Cr) ₹19,248 on 30 Sep 26 Category Equity - Contra AMC Invesco Asset Management (India) Private Ltd Rating ☆☆☆☆ Risk Moderately High Expense Ratio 1.59 Sharpe Ratio -0.34 Information Ratio 0.67 Alpha Ratio -0.21 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 Oct 21 ₹10,000 31 Oct 22 ₹10,332 31 Oct 23 ₹11,393 31 Oct 24 ₹17,170 31 Oct 25 ₹17,672 31 Oct 26 ₹16,469 Returns for Invesco India Contra Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 4 Nov 26 Duration Returns 1 Month 3.8% 3 Month -3.4% 6 Month 2.8% 1 Year -3.8% 3 Year 13.6% 5 Year 10.9% 10 Year 15 Year Since launch 14.1% 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 Deepak Gupta 1 Oct 26 0 Yr. Taher Badshah 13 Jan 17 9.72 Yr. Data below for Invesco India Contra Fund as on 30 Sep 26
Equity Sector Allocation
Sector Value Financial Services 29.21% Consumer Cyclical 16.47% Industrials 14.87% Health Care 13.08% Technology 9.81% Basic Materials 4.24% Energy 3.37% Real Estate 2.83% Communication Services 2.4% Consumer Defensive 1.21% Asset Allocation
Asset Class Value Cash 1.51% Equity 98.49% Top Securities Holdings / Portfolio
Name Holding Value Quantity ICICI Bank Ltd (Financial Services)
Equity, Since 31 May 17 | ICICIBANK6% ₹1,136 Cr 8,598,032 Larsen & Toubro Ltd (Industrials)
Equity, Since 30 Sep 20 | LT5% ₹932 Cr 2,477,814 State Bank of India (Financial Services)
Equity, Since 31 May 26 | SBIN3% ₹591 Cr 6,155,029 Mahindra & Mahindra Ltd (Consumer Cyclical)
Equity, Since 31 Oct 21 | M&M3% ₹569 Cr 1,927,187 Cholamandalam Investment and Finance Co Ltd (Financial Services)
Equity, Since 31 Dec 21 | CHOLAFIN2% ₹472 Cr 2,912,482 Bharti Airtel Ltd (Communication Services)
Equity, Since 31 Mar 26 | BHARTIARTL2% ₹462 Cr 2,628,845 Axis Bank Ltd (Financial Services)
Equity, Since 30 Jun 20 | 5322152% ₹459 Cr 3,741,191 Infosys Ltd (Technology)
Equity, Since 30 Sep 13 | INFY2% ₹416 Cr 4,186,096
↓ -467,455 The Federal Bank Ltd (Financial Services)
Equity, Since 30 Nov 22 | FEDERALBNK2% ₹410 Cr 12,908,524 Glenmark Pharmaceuticals Ltd (Healthcare)
Equity, Since 30 Jun 24 | 5322962% ₹397 Cr 1,701,870 2. Kotak India EQ Contra Fund
Kotak India EQ Contra Fund
Growth Launch Date 27 Jul 05 NAV (04 Nov 26) ₹147.565 ↑ 1.69 (1.16 %) Net Assets (Cr) ₹5,196 on 30 Sep 26 Category Equity - Contra AMC Kotak Mahindra Asset Management Co Ltd Rating ☆☆☆ Risk Moderately High Expense Ratio 1.89 Sharpe Ratio -0.36 Information Ratio 0.9 Alpha Ratio -0.87 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 Oct 21 ₹10,000 31 Oct 22 ₹10,405 31 Oct 23 ₹11,987 31 Oct 24 ₹17,633 31 Oct 25 ₹18,382 31 Oct 26 ₹16,940 Returns for Kotak India EQ Contra Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 4 Nov 26 Duration Returns 1 Month 1.8% 3 Month -5.2% 6 Month -1.2% 1 Year -4.6% 3 Year 13% 5 Year 11.7% 10 Year 15 Year Since launch 13.5% 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 7.4 Yr. Data below for Kotak India EQ Contra Fund as on 30 Sep 26
Equity Sector Allocation
Sector Value Financial Services 31.7% Industrials 15.54% Health Care 12.21% Consumer Cyclical 11.01% Technology 8.18% Basic Materials 7.45% Communication Services 4.13% Energy 2.7% Consumer Defensive 2.53% Utility 2.46% Real Estate 1.04% Asset Allocation
Asset Class Value Cash 1.05% Equity 98.95% Top Securities Holdings / Portfolio
Name Holding Value Quantity ICICI Bank Ltd (Financial Services)
Equity, Since 30 Apr 18 | ICICIBANK6% ₹308 Cr 2,333,051 HDFC Bank Ltd (Financial Services)
Equity, Since 30 Sep 10 | HDFCBANK5% ₹263 Cr 3,711,864
↑ 665,000 State Bank of India (Financial Services)
Equity, Since 31 Oct 16 | SBIN3% ₹168 Cr 1,752,000 Reliance Industries Ltd (Energy)
Equity, Since 30 Sep 08 | RELIANCE3% ₹140 Cr 1,181,648 Hero MotoCorp Ltd (Consumer Cyclical)
Equity, Since 31 Oct 22 | HEROMOTOCO3% ₹139 Cr 264,700 Shriram Finance Ltd (Financial Services)
Equity, Since 30 Jun 23 | SHRIRAMFIN3% ₹131 Cr 1,337,305
↓ -100,000 Larsen & Toubro Ltd (Industrials)
Equity, Since 28 Feb 18 | LT3% ₹130 Cr 345,547 NTPC Ltd (Utilities)
Equity, Since 30 Nov 20 | 5325552% ₹128 Cr 3,955,000 Bharti Airtel Ltd (Communication Services)
Equity, Since 31 Oct 17 | BHARTIARTL2% ₹126 Cr 717,149 Swiggy Ltd (Consumer Cyclical)
Equity, Since 30 Nov 24 | SWIGGY2% ₹118 Cr 4,699,328 3. SBI Contra Fund
SBI Contra Fund
Growth Launch Date 6 May 05 NAV (03 Nov 26) ₹364.835 ↑ 2.89 (0.80 %) Net Assets (Cr) ₹45,068 on 30 Sep 26 Category Equity - Contra AMC SBI Funds Management Private Limited Rating ☆☆☆ Risk Moderately High Expense Ratio 1.5 Sharpe Ratio -0.51 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 31 Oct 21 ₹10,000 31 Oct 22 ₹11,468 31 Oct 23 ₹13,770 31 Oct 24 ₹19,253 31 Oct 25 ₹19,849 31 Oct 26 ₹18,033 Returns for SBI Contra Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 4 Nov 26 Duration Returns 1 Month 2% 3 Month -5.1% 6 Month -2% 1 Year -7.2% 3 Year 9.8% 5 Year 12.5% 10 Year 15 Year Since launch 14.1% 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 8.41 Yr. Data below for SBI Contra Fund as on 30 Sep 26
Equity Sector Allocation
Sector Value Financial Services 24.36% Basic Materials 10% Consumer Cyclical 9.77% Health Care 8.35% Energy 7.54% Utility 7.37% Industrials 7.19% Technology 6.96% Consumer Defensive 4.34% Communication Services 3.89% Real Estate 1.63% Asset Allocation
Asset Class Value Cash 2.79% Equity 96.78% Debt 0.44% Top Securities Holdings / Portfolio
Name Holding Value Quantity HDFC Bank Ltd (Financial Services)
Equity, Since 31 Aug 16 | HDFCBANK5% ₹2,158 Cr 30,449,258 Reliance Industries Ltd (Energy)
Equity, Since 31 Mar 23 | RELIANCE5% ₹2,103 Cr 17,717,567 ICICI Bank Ltd (Financial Services)
Equity, Since 28 Feb 17 | ICICIBANK4% ₹1,967 Cr 14,881,550 Biocon Ltd (Healthcare)
Equity, Since 30 Jun 21 | BIOCON3% ₹1,484 Cr 40,073,925 Kotak Mahindra Bank Ltd (Financial Services)
Equity, Since 31 Mar 24 | KOTAKBANK3% ₹1,419 Cr 34,028,840
↑ 1,442,951 Bank Nifty Index 27-10-2026
- | -3% ₹1,320 Cr 240,000
↑ 240,000 Punjab National Bank (Financial Services)
Equity, Since 30 Sep 22 | 5324613% ₹1,310 Cr 115,846,832 Indus Towers Ltd Ordinary Shares (Communication Services)
Equity, Since 30 Jun 24 | 5348163% ₹1,199 Cr 32,126,692 Nifty Index 27-10-2026
- | -3% ₹1,135 Cr 499,980
↑ 499,980 Torrent Power Ltd (Utilities)
Equity, Since 31 Oct 21 | 5327792% ₹1,119 Cr 8,982,410
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!
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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