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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.
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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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 Below is the key information for SBI Contra Fund Returns up to 1 year are 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. 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 (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 Below is the key information for Kotak India EQ Contra Fund Returns up to 1 year are on Fund NAV Net Assets (Cr) 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 5 YR (%) 2021 (%) SBI Contra Fund Growth ₹217.538
↑ 1.32 ₹4,670 11.3 9.6 20.5 30.8 15.2 49.9 Invesco India Contra Fund Growth ₹79.23
↑ 0.36 ₹8,211 11.9 4.5 7.8 21.1 14.3 29.6 Kotak India EQ Contra Fund Growth ₹85.48
↑ 0.37 ₹1,192 10.6 3.7 7.7 19.3 13.6 30.2 Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 17 Aug 22 Assets >= 100 Crore
& Sorted on 3 year CAGR Returns
.
1. SBI Contra Fund
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% . 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.
Date Value 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 Returns for SBI Contra Fund
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 17 Aug 22 Duration Returns 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
Year Returns 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
Name Since Tenure Dinesh Balachandran 7 May 18 4.24 Yr. Mohit Jain 5 May 18 4.24 Yr. Data below for SBI Contra Fund as on 30 Jun 22
Equity Sector Allocation
Sector Value Financial Services 17.5% Consumer Cyclical 11.54% Industrials 10.71% Basic Materials 8.8% Utility 7.01% Technology 5.44% Health Care 4.35% Consumer Defensive 3.61% Communication Services 2.65% Energy 2.54% Real Estate 2.24% Asset Allocation
Asset Class Value Cash 23.59% Equity 76.41% Top Securities Holdings / Portfolio
Name Holding Value Quantity HDFC Bank Ltd (Financial Services)
Equity, Since 31 Aug 16 | HDFCBANK4% ₹195 Cr 1,443,872
↑ 931,230 ICICI Bank Ltd (Financial Services)
Equity, Since 28 Feb 17 | ICICIBANK4% ₹187 Cr 2,640,345
↑ 906,424 182 Dtb 11082022
Sovereign Bonds | -3% ₹149 Cr 15,000,000 Tube Investments of India Ltd Ordinary Shares (Consumer Cyclical)
Equity, Since 31 Jan 21 | TIINDIA3% ₹140 Cr 760,201 State Bank of India (Financial Services)
Equity, Since 31 Dec 10 | SBIN3% ₹121 Cr 2,594,269
↑ 664,269 GAIL (India) Ltd (Utilities)
Equity, Since 28 Feb 21 | 5321552% ₹112 Cr 8,274,197
↓ -275,803 HCL Technologies Ltd (Technology)
Equity, Since 31 Aug 13 | HCLTECH2% ₹104 Cr 1,070,000 ITC Ltd (Consumer Defensive)
Equity, Since 31 Jul 20 | ITC2% ₹100 Cr 3,650,000 182 Dtb 01092022
Sovereign Bonds | -2% ₹99 Cr 10,000,000
↑ 10,000,000 91 Dtb 22092022
Sovereign Bonds | -2% ₹99 Cr 10,000,000
↑ 10,000,000 2. Invesco India Contra Fund
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% . 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.
Date Value 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 Returns for Invesco India Contra Fund
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 17 Aug 22 Duration Returns 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
Year Returns 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
Name Since Tenure Taher Badshah 10 Jan 17 5.56 Yr. Dhimant Kothari 19 May 20 2.2 Yr. Data below for Invesco India Contra Fund as on 30 Jun 22
Equity Sector Allocation
Sector Value Financial Services 29.81% Consumer Cyclical 12.32% Industrials 11.5% Technology 10.64% Basic Materials 7.35% Energy 7.02% Consumer Defensive 6.15% Health Care 5.82% Utility 4.21% Communication Services 1.6% Real Estate 0.98% Asset Allocation
Asset Class Value Cash 1.99% Equity 98.01% Top Securities Holdings / Portfolio
Name Holding Value Quantity ICICI Bank Ltd (Financial Services)
Equity, Since 31 May 17 | ICICIBANK8% ₹688 Cr 9,728,895
↓ -127,435 HDFC Bank Ltd (Financial Services)
Equity, Since 30 Apr 14 | HDFCBANK7% ₹603 Cr 4,474,712 Infosys Ltd (Technology)
Equity, Since 30 Sep 13 | INFY6% ₹494 Cr 3,382,548
↑ 17,188 Reliance Industries Ltd (Energy)
Equity, Since 31 Aug 19 | RELIANCE6% ₹471 Cr 1,813,012
↑ 313,779 State Bank of India (Financial Services)
Equity, Since 28 Feb 21 | SBIN4% ₹362 Cr 7,767,195 Maruti Suzuki India Ltd (Consumer Cyclical)
Equity, Since 30 Jun 21 | MARUTI3% ₹251 Cr 296,316
↓ -7,537 Sun Pharmaceuticals Industries Ltd (Healthcare)
Equity, Since 30 Nov 16 | SUNPHARMA3% ₹232 Cr 2,794,681
↓ -274,034 Larsen & Toubro Ltd (Industrials)
Equity, Since 30 Sep 20 | LT3% ₹206 Cr 1,321,481
↓ -59,963 ITC Ltd (Consumer Defensive)
Equity, Since 30 Sep 21 | ITC2% ₹203 Cr 7,438,125
↑ 2,730,275 Mahindra & Mahindra Ltd (Consumer Cyclical)
Equity, Since 31 Oct 21 | M&M2% ₹203 Cr 1,856,655
↑ 329,532 3. Kotak India EQ Contra Fund
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% . 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.
Date Value 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 Returns for Kotak India EQ Contra Fund
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 17 Aug 22 Duration Returns 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
Year Returns 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
Name Since Tenure Shibani Kurian 9 May 19 3.23 Yr. Data below for Kotak India EQ Contra Fund as on 30 Jun 22
Equity Sector Allocation
Sector Value Financial Services 27.27% Industrials 11.75% Technology 10.39% Consumer Cyclical 10% Energy 9.39% Basic Materials 7.71% Consumer Defensive 7.27% Health Care 6.56% Communication Services 2.98% Utility 2.44% Real Estate 1.26% Asset Allocation
Asset Class Value Cash 2.99% Equity 97.01% Top Securities Holdings / Portfolio
Name Holding Value Quantity ICICI Bank Ltd (Financial Services)
Equity, Since 30 Apr 18 | ICICIBANK8% ₹91 Cr 1,292,551
↑ 16,500 Reliance Industries Ltd (Energy)
Equity, Since 30 Sep 08 | RELIANCE7% ₹85 Cr 329,124 Infosys Ltd (Technology)
Equity, Since 31 Oct 10 | INFY5% ₹62 Cr 422,700 HDFC Bank Ltd (Financial Services)
Equity, Since 30 Sep 10 | HDFCBANK5% ₹60 Cr 446,536
↑ 73,900 State Bank of India (Financial Services)
Equity, Since 31 Oct 16 | SBIN4% ₹52 Cr 1,116,000
↑ 25,000 Larsen & Toubro Ltd (Industrials)
Equity, Since 28 Feb 18 | LT3% ₹38 Cr 245,895 Axis Bank Ltd (Financial Services)
Equity, Since 30 Nov 18 | 5322153% ₹35 Cr 549,000 Bharti Airtel Ltd (Communication Services)
Equity, Since 31 Oct 17 | BHARTIARTL3% ₹34 Cr 502,149 Tata Consultancy Services Ltd (Technology)
Equity, Since 30 Nov 12 | TCS3% ₹32 Cr 98,241 Mahindra & Mahindra Ltd (Consumer Cyclical)
Equity, Since 28 Feb 18 | M&M3% ₹32 Cr 290,152
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.
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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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