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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 August 15, 2022 , 27655 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 ₹217.538
↑ 1.32
₹4,67011.39.620.530.815.249.9
Invesco India Contra Fund Growth ₹79.23
↑ 0.36
₹8,21111.94.57.821.114.329.6
Kotak India EQ Contra Fund Growth ₹85.48
↑ 0.37
₹1,19210.63.77.719.313.630.2
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 17 Aug 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 16.1% 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 (17 Aug 22) ₹217.538 ↑ 1.32   (0.61 %)
Net Assets (Cr) ₹4,670 on 30 Jun 22
Category Equity - Contra
AMC SBI Funds Management Private Limited
Rating
Risk Moderately High
Expense Ratio 2.29
Sharpe Ratio 0.66
Information Ratio 1.17
Alpha Ratio 9.6
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 Jul 17₹10,000
31 Jul 18₹10,022
31 Jul 19₹8,929
31 Jul 20₹8,900
31 Jul 21₹16,474
31 Jul 22₹18,952

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 ₹447,579.
Net Profit of ₹147,579
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 17 Aug 22

DurationReturns
1 Month 9.2%
3 Month 11.3%
6 Month 9.6%
1 Year 20.5%
3 Year 30.8%
5 Year 15.2%
10 Year
15 Year
Since launch 16.1%
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 184.24 Yr.
Mohit Jain5 May 184.24 Yr.

Data below for SBI Contra Fund as on 30 Jun 22

Equity Sector Allocation
SectorValue
Financial Services17.5%
Consumer Cyclical11.54%
Industrials10.71%
Basic Materials8.8%
Utility7.01%
Technology5.44%
Health Care4.35%
Consumer Defensive3.61%
Communication Services2.65%
Energy2.54%
Real Estate2.24%
Asset Allocation
Asset ClassValue
Cash23.59%
Equity76.41%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
HDFC Bank Ltd (Financial Services)
Equity, Since 31 Aug 16 | HDFCBANK
4%₹195 Cr1,443,872
↑ 931,230
ICICI Bank Ltd (Financial Services)
Equity, Since 28 Feb 17 | ICICIBANK
4%₹187 Cr2,640,345
↑ 906,424
182 Dtb 11082022
Sovereign Bonds | -
3%₹149 Cr15,000,000
Tube Investments of India Ltd Ordinary Shares (Consumer Cyclical)
Equity, Since 31 Jan 21 | TIINDIA
3%₹140 Cr760,201
State Bank of India (Financial Services)
Equity, Since 31 Dec 10 | SBIN
3%₹121 Cr2,594,269
↑ 664,269
GAIL (India) Ltd (Utilities)
Equity, Since 28 Feb 21 | 532155
2%₹112 Cr8,274,197
↓ -275,803
HCL Technologies Ltd (Technology)
Equity, Since 31 Aug 13 | HCLTECH
2%₹104 Cr1,070,000
ITC Ltd (Consumer Defensive)
Equity, Since 31 Jul 20 | ITC
2%₹100 Cr3,650,000
182 Dtb 01092022
Sovereign Bonds | -
2%₹99 Cr10,000,000
↑ 10,000,000
91 Dtb 22092022
Sovereign Bonds | -
2%₹99 Cr10,000,000
↑ 10,000,000

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.

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 (17 Aug 22) ₹79.23 ↑ 0.36   (0.46 %)
Net Assets (Cr) ₹8,211 on 30 Jun 22
Category Equity - Contra
AMC Invesco Asset Management (India) Private Ltd
Rating
Risk Moderately High
Expense Ratio 1.62
Sharpe Ratio -0.39
Information Ratio -0.11
Alpha Ratio -2.55
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 Jul 17₹10,000
31 Jul 18₹11,829
31 Jul 19₹10,960
31 Jul 20₹11,735
31 Jul 21₹17,529
31 Jul 22₹18,387

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 ₹436,710.
Net Profit of ₹136,710
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 17 Aug 22

DurationReturns
1 Month 10.7%
3 Month 11.9%
6 Month 4.5%
1 Year 7.8%
3 Year 21.1%
5 Year 14.3%
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 175.56 Yr.
Dhimant Kothari19 May 202.2 Yr.

Data below for Invesco India Contra Fund as on 30 Jun 22

Equity Sector Allocation
SectorValue
Financial Services29.81%
Consumer Cyclical12.32%
Industrials11.5%
Technology10.64%
Basic Materials7.35%
Energy7.02%
Consumer Defensive6.15%
Health Care5.82%
Utility4.21%
Communication Services1.6%
Real Estate0.98%
Asset Allocation
Asset ClassValue
Cash1.99%
Equity98.01%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
ICICI Bank Ltd (Financial Services)
Equity, Since 31 May 17 | ICICIBANK
8%₹688 Cr9,728,895
↓ -127,435
HDFC Bank Ltd (Financial Services)
Equity, Since 30 Apr 14 | HDFCBANK
7%₹603 Cr4,474,712
Infosys Ltd (Technology)
Equity, Since 30 Sep 13 | INFY
6%₹494 Cr3,382,548
↑ 17,188
Reliance Industries Ltd (Energy)
Equity, Since 31 Aug 19 | RELIANCE
6%₹471 Cr1,813,012
↑ 313,779
State Bank of India (Financial Services)
Equity, Since 28 Feb 21 | SBIN
4%₹362 Cr7,767,195
Maruti Suzuki India Ltd (Consumer Cyclical)
Equity, Since 30 Jun 21 | MARUTI
3%₹251 Cr296,316
↓ -7,537
Sun Pharmaceuticals Industries Ltd (Healthcare)
Equity, Since 30 Nov 16 | SUNPHARMA
3%₹232 Cr2,794,681
↓ -274,034
Larsen & Toubro Ltd (Industrials)
Equity, Since 30 Sep 20 | LT
3%₹206 Cr1,321,481
↓ -59,963
ITC Ltd (Consumer Defensive)
Equity, Since 30 Sep 21 | ITC
2%₹203 Cr7,438,125
↑ 2,730,275
Mahindra & Mahindra Ltd (Consumer Cyclical)
Equity, Since 31 Oct 21 | M&M
2%₹203 Cr1,856,655
↑ 329,532

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 13.4% 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 (17 Aug 22) ₹85.48 ↑ 0.37   (0.43 %)
Net Assets (Cr) ₹1,192 on 30 Jun 22
Category Equity - Contra
AMC Kotak Mahindra Asset Management Co Ltd
Rating
Risk Moderately High
Expense Ratio 2.2
Sharpe Ratio -0.31
Information Ratio -0.17
Alpha Ratio -1.54
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 Jul 17₹10,000
31 Jul 18₹11,656
31 Jul 19₹11,207
31 Jul 20₹11,355
31 Jul 21₹17,244
31 Jul 22₹18,280

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 17 Aug 22

DurationReturns
1 Month 10.7%
3 Month 10.6%
6 Month 3.7%
1 Year 7.7%
3 Year 19.3%
5 Year 13.6%
10 Year
15 Year
Since launch 13.4%
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 193.23 Yr.

Data below for Kotak India EQ Contra Fund as on 30 Jun 22

Equity Sector Allocation
SectorValue
Financial Services27.27%
Industrials11.75%
Technology10.39%
Consumer Cyclical10%
Energy9.39%
Basic Materials7.71%
Consumer Defensive7.27%
Health Care6.56%
Communication Services2.98%
Utility2.44%
Real Estate1.26%
Asset Allocation
Asset ClassValue
Cash2.99%
Equity97.01%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
ICICI Bank Ltd (Financial Services)
Equity, Since 30 Apr 18 | ICICIBANK
8%₹91 Cr1,292,551
↑ 16,500
Reliance Industries Ltd (Energy)
Equity, Since 30 Sep 08 | RELIANCE
7%₹85 Cr329,124
Infosys Ltd (Technology)
Equity, Since 31 Oct 10 | INFY
5%₹62 Cr422,700
HDFC Bank Ltd (Financial Services)
Equity, Since 30 Sep 10 | HDFCBANK
5%₹60 Cr446,536
↑ 73,900
State Bank of India (Financial Services)
Equity, Since 31 Oct 16 | SBIN
4%₹52 Cr1,116,000
↑ 25,000
Larsen & Toubro Ltd (Industrials)
Equity, Since 28 Feb 18 | LT
3%₹38 Cr245,895
Axis Bank Ltd (Financial Services)
Equity, Since 30 Nov 18 | 532215
3%₹35 Cr549,000
Bharti Airtel Ltd (Communication Services)
Equity, Since 31 Oct 17 | BHARTIARTL
3%₹34 Cr502,149
Tata Consultancy Services Ltd (Technology)
Equity, Since 30 Nov 12 | TCS
3%₹32 Cr98,241
Mahindra & Mahindra Ltd (Consumer Cyclical)
Equity, Since 28 Feb 18 | M&M
3%₹32 Cr290,152

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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