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Top 3 Best Contra Funds to Invest in 2022- Fincash

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Top 3 Best Contra Funds to Invest in 2022

Updated on November 27, 2022 , 29678 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.

best-contra-funds

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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Best Performing Contra Funds to Invest in FY 22 - 23

FundNAVNet Assets (Cr)3 MO (%)6 MO (%)1 YR (%)3 YR (%)5 YR (%)2021 (%)
SBI Contra Fund Growth ₹232.186
↑ 0.13
₹6,6948.518.719.230.514.249.9
Invesco India Contra Fund Growth ₹82.02
↑ 0.11
₹9,669615.39.418.812.429.6
Kotak India EQ Contra Fund Growth ₹89.672
↑ 0.12
₹1,4217.615.911.817.913.430.2
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 29 Nov 22
*List of funds based on Assets >= 100 Crore & Sorted on 3 year CAGR Returns.

1. SBI Contra Fund

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 CAGR/Annualized return of 16.3% since its launch.  Ranked 48 in Contra category.  Return for 2021 was 49.9% , 2020 was 30.6% and 2019 was -1% .

Below is the key information for SBI Contra Fund

SBI Contra Fund
Growth
Launch Date 6 May 05
NAV (29 Nov 22) ₹232.186 ↑ 0.13   (0.06 %)
Net Assets (Cr) ₹6,694 on 31 Oct 22
Category Equity - Contra
AMC SBI Funds Management Private Limited
Rating
Risk Moderately High
Expense Ratio 2.19
Sharpe Ratio 0.75
Information Ratio 1.75
Alpha Ratio 9.74
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.

DateValue
31 Oct 17₹10,000
31 Oct 18₹8,926
31 Oct 19₹8,963
31 Oct 20₹9,300
31 Oct 21₹17,148
31 Oct 22₹19,664

SBI Contra Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹300,000
expected amount after 5 Years is ₹436,710.
Net Profit of ₹136,710
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 29 Nov 22

DurationReturns
1 Month 3.5%
3 Month 8.5%
6 Month 18.7%
1 Year 19.2%
3 Year 30.5%
5 Year 14.2%
10 Year
15 Year
Since launch 16.3%
Historical performance (Yearly) on absolute basis
YearReturns
2021 49.9%
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%
Fund Manager information for SBI Contra Fund
NameSinceTenure
Dinesh Balachandran7 May 184.49 Yr.
Mohit Jain5 May 184.5 Yr.

Data below for SBI Contra Fund as on 31 Oct 22

Equity Sector Allocation
SectorValue
Financial Services20.03%
Industrials10.87%
Basic Materials9.03%
Consumer Cyclical8.03%
Health Care6.7%
Utility5.56%
Technology5.48%
Consumer Defensive5%
Communication Services2.45%
Real Estate2.1%
Energy1.53%
Asset Allocation
Asset ClassValue
Cash23.23%
Equity76.77%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
ICICI Bank Ltd (Financial Services)
Equity, Since 28 Feb 17 | ICICIBANK
4%₹228 Cr2,640,345
Tube Investments of India Ltd Ordinary Shares (Consumer Cyclical)
Equity, Since 31 Jan 21 | TIINDIA
3%₹209 Cr760,201
HDFC Bank Ltd (Financial Services)
Equity, Since 31 Aug 16 | HDFCBANK
3%₹205 Cr1,443,872
HCL Technologies Ltd (Technology)
Equity, Since 31 Aug 13 | HCLTECH
3%₹156 Cr1,670,000
91 DTB 03112022
Sovereign Bonds | -
2%₹149 Cr15,000,000
State Bank of India (Financial Services)
Equity, Since 31 Dec 10 | SBIN
2%₹138 Cr2,594,269
Aster DM Healthcare Ltd Ordinary Shares (Healthcare)
Equity, Since 30 Apr 22 | ASTERDM
2%₹135 Cr5,343,650
91 DTB 29122022
Sovereign Bonds | -
2%₹123 Cr12,500,000
↑ 12,500,000
ITC Ltd (Consumer Defensive)
Equity, Since 31 Jul 20 | ITC
2%₹121 Cr3,650,000
CESC Ltd (Utilities)
Equity, Since 31 Mar 21 | 500084
2%₹111 Cr14,378,127

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.

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 CAGR/Annualized return of 14.4% since its launch.  Ranked 11 in Contra category.  Return for 2021 was 29.6% , 2020 was 21.2% and 2019 was 5.9% .

Below is the key information for Invesco India Contra Fund

Invesco India Contra Fund
Growth
Launch Date 11 Apr 07
NAV (29 Nov 22) ₹82.02 ↑ 0.11   (0.13 %)
Net Assets (Cr) ₹9,669 on 31 Oct 22
Category Equity - Contra
AMC Invesco Asset Management (India) Private Ltd
Rating
Risk Moderately High
Expense Ratio 1.85
Sharpe Ratio -0.01
Information Ratio 0.04
Alpha Ratio -0.64
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.

DateValue
31 Oct 17₹10,000
31 Oct 18₹10,102
31 Oct 19₹10,927
31 Oct 20₹11,278
31 Oct 21₹17,630
31 Oct 22₹18,215

Invesco India Contra Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹300,000
expected amount after 5 Years is ₹415,684.
Net Profit of ₹115,684
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 29 Nov 22

DurationReturns
1 Month 3.1%
3 Month 6%
6 Month 15.3%
1 Year 9.4%
3 Year 18.8%
5 Year 12.4%
10 Year
15 Year
Since launch 14.4%
Historical performance (Yearly) on absolute basis
YearReturns
2021 29.6%
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%
Fund Manager information for Invesco India Contra Fund
NameSinceTenure
Taher Badshah10 Jan 175.81 Yr.
Dhimant Kothari19 May 202.45 Yr.

Data below for Invesco India Contra Fund as on 31 Oct 22

Equity Sector Allocation
SectorValue
Financial Services31%
Consumer Cyclical12.22%
Industrials11.69%
Technology10.2%
Health Care7.34%
Basic Materials7.23%
Consumer Defensive6.21%
Energy4.68%
Utility3.57%
Communication Services1.63%
Real Estate1.02%
Asset Allocation
Asset ClassValue
Cash3.2%
Equity96.8%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
ICICI Bank Ltd (Financial Services)
Equity, Since 31 May 17 | ICICIBANK
8%₹773 Cr8,962,480
↓ -108,682
HDFC Bank Ltd (Financial Services)
Equity, Since 30 Apr 14 | HDFCBANK
7%₹687 Cr4,831,339
Infosys Ltd (Technology)
Equity, Since 30 Sep 13 | INFY
6%₹562 Cr3,972,809
↑ 280,141
Reliance Industries Ltd (Energy)
Equity, Since 31 Aug 19 | RELIANCE
4%₹389 Cr1,636,452
↓ -68,762
State Bank of India (Financial Services)
Equity, Since 28 Feb 21 | SBIN
4%₹360 Cr6,786,639
Sun Pharmaceuticals Industries Ltd (Healthcare)
Equity, Since 30 Nov 16 | SUNPHARMA
3%₹265 Cr2,794,681
Larsen & Toubro Ltd (Industrials)
Equity, Since 30 Sep 20 | LT
3%₹244 Cr1,321,481
ITC Ltd (Consumer Defensive)
Equity, Since 30 Sep 21 | ITC
3%₹244 Cr7,331,692
NTPC Ltd (Utilities)
Equity, Since 31 Mar 21 | 532555
2%₹230 Cr14,408,581
Axis Bank Ltd (Financial Services)
Equity, Since 30 Jun 20 | 532215
2%₹223 Cr3,037,537

3. 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.

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 CAGR/Annualized return of 13.5% since its launch.  Ranked 30 in Contra category.  Return for 2021 was 30.2% , 2020 was 15.2% and 2019 was 10% .

Below is the key information for Kotak India EQ Contra Fund

Kotak India EQ Contra Fund
Growth
Launch Date 27 Jul 05
NAV (29 Nov 22) ₹89.672 ↑ 0.12   (0.13 %)
Net Assets (Cr) ₹1,421 on 31 Oct 22
Category Equity - Contra
AMC Kotak Mahindra Asset Management Co Ltd
Rating
Risk Moderately High
Expense Ratio 2.13
Sharpe Ratio 0.05
Information Ratio -0.23
Alpha Ratio 0.5
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.

DateValue
31 Oct 17₹10,000
31 Oct 18₹10,103
31 Oct 19₹11,462
31 Oct 20₹11,281
31 Oct 21₹17,742
31 Oct 22₹18,461

Kotak India EQ Contra Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹300,000
expected amount after 5 Years is ₹426,080.
Net Profit of ₹126,080
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 29 Nov 22

DurationReturns
1 Month 4%
3 Month 7.6%
6 Month 15.9%
1 Year 11.8%
3 Year 17.9%
5 Year 13.4%
10 Year
15 Year
Since launch 13.5%
Historical performance (Yearly) on absolute basis
YearReturns
2021 30.2%
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%
Fund Manager information for Kotak India EQ Contra Fund
NameSinceTenure
Shibani Kurian9 May 193.48 Yr.

Data below for Kotak India EQ Contra Fund as on 31 Oct 22

Equity Sector Allocation
SectorValue
Financial Services30.31%
Industrials12.59%
Consumer Cyclical10.99%
Consumer Defensive8.94%
Technology8.26%
Basic Materials7.79%
Health Care6.81%
Energy5.08%
Communication Services3.19%
Utility2.5%
Real Estate1.39%
Asset Allocation
Asset ClassValue
Cash2.14%
Equity97.86%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
ICICI Bank Ltd (Financial Services)
Equity, Since 30 Apr 18 | ICICIBANK
8%₹110 Cr1,277,551
↓ -15,000
HDFC Bank Ltd (Financial Services)
Equity, Since 30 Sep 10 | HDFCBANK
5%₹65 Cr457,136
↓ -19,000
Infosys Ltd (Technology)
Equity, Since 31 Oct 10 | INFY
5%₹62 Cr441,000
State Bank of India (Financial Services)
Equity, Since 31 Oct 16 | SBIN
5%₹61 Cr1,141,000
Reliance Industries Ltd (Energy)
Equity, Since 30 Sep 08 | RELIANCE
4%₹58 Cr246,024
↓ -83,100
Larsen & Toubro Ltd (Industrials)
Equity, Since 28 Feb 18 | LT
3%₹44 Cr238,495
Axis Bank Ltd (Financial Services)
Equity, Since 30 Nov 18 | 532215
3%₹40 Cr549,000
Bharti Airtel Ltd (Communication Services)
Equity, Since 31 Oct 17 | BHARTIARTL
3%₹40 Cr502,149
Mahindra & Mahindra Ltd (Consumer Cyclical)
Equity, Since 28 Feb 18 | M&M
3%₹37 Cr290,152
ITC Ltd (Consumer Defensive)
Equity, Since 31 Jan 08 | ITC
3%₹36 Cr1,093,000

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?

  1. Open Free Investment Account for Lifetime at Fincash.com.

  2. Complete your Registration and KYC Process

  3. Upload Documents (PAN, Aadhaar, etc.). And, You are Ready to Invest!

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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.
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Rupak Choudhurie, posted on 24 Nov 19 7:44 PM

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

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