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Top 3 Best Contra Funds to Invest in 2023- Fincash

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Top 3 Best Contra Funds to Invest in 2023

Updated on March 22, 2023 , 31369 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 23 - 24

FundNAVNet Assets (Cr)3 MO (%)6 MO (%)1 YR (%)3 YR (%)5 YR (%)2022 (%)
SBI Contra Fund Growth ₹222.713
↓ -1.81
₹8,3410.21.913.147.315.112.8
Kotak India EQ Contra Fund Growth ₹84.443
↓ -0.78
₹1,441-2.30.63.932.812.77.4
Invesco India Contra Fund Growth ₹74.62
↓ -0.50
₹9,348-4.5-4.80.530.2113.8
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 24 Mar 23
*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 15.7% since its launch.  Ranked 48 in Contra category.  Return for 2022 was 12.8% , 2021 was 49.9% and 2020 was 30.6% .

Below is the key information for SBI Contra Fund

SBI Contra Fund
Growth
Launch Date 6 May 05
NAV (24 Mar 23) ₹222.713 ↓ -1.81   (-0.80 %)
Net Assets (Cr) ₹8,341 on 28 Feb 23
Category Equity - Contra
AMC SBI Funds Management Private Limited
Rating
Risk Moderately High
Expense Ratio 2.19
Sharpe Ratio 0.88
Information Ratio 2.07
Alpha Ratio 12.18
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
28 Feb 18₹10,000
28 Feb 19₹8,614
29 Feb 20₹8,330
28 Feb 21₹12,786
28 Feb 22₹16,193
28 Feb 23₹18,953

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 24 Mar 23

DurationReturns
1 Month -1.4%
3 Month 0.2%
6 Month 1.9%
1 Year 13.1%
3 Year 47.3%
5 Year 15.1%
10 Year
15 Year
Since launch 15.7%
Historical performance (Yearly) on absolute basis
YearReturns
2022 12.8%
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%
Fund Manager information for SBI Contra Fund
NameSinceTenure
Dinesh Balachandran7 May 184.74 Yr.
Mohit Jain5 May 184.75 Yr.

Data below for SBI Contra Fund as on 28 Feb 23

Equity Sector Allocation
SectorValue
Financial Services21.7%
Industrials10.2%
Utility9.94%
Basic Materials9.11%
Consumer Cyclical5.63%
Energy4.89%
Consumer Defensive4.78%
Technology4.73%
Health Care4.63%
Real Estate1.58%
Communication Services1.52%
Asset Allocation
Asset ClassValue
Cash20.99%
Equity79.01%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
GAIL (India) Ltd (Utilities)
Equity, Since 28 Feb 21 | 532155
4%₹306 Cr32,211,295
↑ 5,000,000
ICICI Bank Ltd (Financial Services)
Equity, Since 28 Feb 17 | ICICIBANK
3%₹261 Cr3,140,345
↑ 500,000
HDFC Bank Ltd (Financial Services)
Equity, Since 31 Aug 16 | HDFCBANK
3%₹232 Cr1,443,872
Axis Bank Ltd (Financial Services)
Equity, Since 31 May 19 | 532215
3%₹218 Cr2,504,255
Tech Mahindra Ltd (Technology)
Equity, Since 31 Mar 22 | 532755
3%₹202 Cr1,989,904
↑ 253,800
91 DTB 06042023
Sovereign Bonds | -
2%₹198 Cr20,000,000
↑ 20,000,000
Housing Development Finance Corp Ltd (Financial Services)
Equity, Since 31 Aug 22 | HDFC
2%₹194 Cr740,000
↑ 300,000
Power Grid Corp Of India Ltd (Utilities)
Equity, Since 31 Dec 22 | 532898
2%₹182 Cr8,400,000
Infosys Ltd (Technology)
Equity, Since 28 Feb 19 | INFY
2%₹174 Cr1,131,470
Mahindra & Mahindra Financial Services Ltd (Financial Services)
Equity, Since 31 May 22 | M&MFIN
2%₹171 Cr7,366,713

2. 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 12.8% since its launch.  Ranked 30 in Contra category.  Return for 2022 was 7.4% , 2021 was 30.2% and 2020 was 15.2% .

Below is the key information for Kotak India EQ Contra Fund

Kotak India EQ Contra Fund
Growth
Launch Date 27 Jul 05
NAV (24 Mar 23) ₹84.443 ↓ -0.78   (-0.91 %)
Net Assets (Cr) ₹1,441 on 28 Feb 23
Category Equity - Contra
AMC Kotak Mahindra Asset Management Co Ltd
Rating
Risk Moderately High
Expense Ratio 2.13
Sharpe Ratio 0.22
Information Ratio 0.02
Alpha Ratio 4.61
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
28 Feb 18₹10,000
28 Feb 19₹10,283
29 Feb 20₹10,979
28 Feb 21₹14,396
28 Feb 22₹16,577
28 Feb 23₹17,874

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 ₹415,684.
Net Profit of ₹115,684
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 24 Mar 23

DurationReturns
1 Month -2.4%
3 Month -2.3%
6 Month 0.6%
1 Year 3.9%
3 Year 32.8%
5 Year 12.7%
10 Year
15 Year
Since launch 12.8%
Historical performance (Yearly) on absolute basis
YearReturns
2022 7.4%
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%
Fund Manager information for Kotak India EQ Contra Fund
NameSinceTenure
Shibani Kurian9 May 193.74 Yr.

Data below for Kotak India EQ Contra Fund as on 28 Feb 23

Equity Sector Allocation
SectorValue
Financial Services28.94%
Industrials13.26%
Consumer Cyclical12.06%
Technology10.35%
Consumer Defensive8.26%
Basic Materials7.95%
Health Care6.4%
Energy3.78%
Utility3.13%
Communication Services2.97%
Real Estate1.15%
Asset Allocation
Asset ClassValue
Cash1.75%
Equity98.25%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Infosys Ltd (Technology)
Equity, Since 31 Oct 10 | INFY
5%₹76 Cr498,500
↑ 49,000
ICICI Bank Ltd (Financial Services)
Equity, Since 30 Apr 18 | ICICIBANK
5%₹68 Cr815,551
↓ -69,000
HDFC Bank Ltd (Financial Services)
Equity, Since 30 Sep 10 | HDFCBANK
4%₹65 Cr403,336
↑ 10,000
Reliance Industries Ltd (Energy)
Equity, Since 30 Sep 08 | RELIANCE
4%₹52 Cr218,824
State Bank of India (Financial Services)
Equity, Since 31 Oct 16 | SBIN
4%₹51 Cr923,000
Larsen & Toubro Ltd (Industrials)
Equity, Since 28 Feb 18 | LT
3%₹49 Cr231,695
Axis Bank Ltd (Financial Services)
Equity, Since 30 Nov 18 | 532215
3%₹48 Cr549,000
Bharti Airtel Ltd (Communication Services)
Equity, Since 31 Oct 17 | BHARTIARTL
3%₹39 Cr502,149
UltraTech Cement Ltd (Basic Materials)
Equity, Since 30 Jun 19 | ULTRACEMCO
3%₹37 Cr51,800
Cummins India Ltd (Industrials)
Equity, Since 31 May 21 | 500480
2%₹36 Cr249,000

3. 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 13.4% since its launch.  Ranked 11 in Contra category.  Return for 2022 was 3.8% , 2021 was 29.6% and 2020 was 21.2% .

Below is the key information for Invesco India Contra Fund

Invesco India Contra Fund
Growth
Launch Date 11 Apr 07
NAV (24 Mar 23) ₹74.62 ↓ -0.50   (-0.67 %)
Net Assets (Cr) ₹9,348 on 28 Feb 23
Category Equity - Contra
AMC Invesco Asset Management (India) Private Ltd
Rating
Risk Moderately High
Expense Ratio 1.85
Sharpe Ratio 0.03
Information Ratio -0.39
Alpha Ratio 1.47
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
28 Feb 18₹10,000
28 Feb 19₹9,628
29 Feb 20₹10,415
28 Feb 21₹13,624
28 Feb 22₹15,715
28 Feb 23₹16,483

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 ₹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 24 Mar 23

DurationReturns
1 Month -3.3%
3 Month -4.5%
6 Month -4.8%
1 Year 0.5%
3 Year 30.2%
5 Year 11%
10 Year
15 Year
Since launch 13.4%
Historical performance (Yearly) on absolute basis
YearReturns
2022 3.8%
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%
Fund Manager information for Invesco India Contra Fund
NameSinceTenure
Taher Badshah10 Jan 176.06 Yr.
Dhimant Kothari19 May 202.71 Yr.

Data below for Invesco India Contra Fund as on 28 Feb 23

Equity Sector Allocation
SectorValue
Financial Services31.18%
Industrials13.18%
Consumer Cyclical11.37%
Technology10.62%
Health Care7.45%
Consumer Defensive6.47%
Energy5.36%
Basic Materials5.02%
Utility3.21%
Communication Services1.38%
Real Estate1.15%
Asset Allocation
Asset ClassValue
Cash3.63%
Equity96.37%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
HDFC Bank Ltd (Financial Services)
Equity, Since 30 Apr 14 | HDFCBANK
9%₹872 Cr5,440,416
ICICI Bank Ltd (Financial Services)
Equity, Since 31 May 17 | ICICIBANK
6%₹568 Cr6,828,008
Infosys Ltd (Technology)
Equity, Since 30 Sep 13 | INFY
6%₹549 Cr3,578,567
↑ 55,221
Reliance Industries Ltd (Energy)
Equity, Since 31 Aug 19 | RELIANCE
5%₹437 Cr1,857,061
↓ -320,255
Axis Bank Ltd (Financial Services)
Equity, Since 30 Jun 20 | 532215
4%₹366 Cr4,198,734
↑ 464,627
Sun Pharmaceuticals Industries Ltd (Healthcare)
Equity, Since 30 Nov 16 | SUNPHARMA
3%₹308 Cr2,981,099
Larsen & Toubro Ltd (Industrials)
Equity, Since 30 Sep 20 | LT
3%₹307 Cr1,443,164
NTPC Ltd (Utilities)
Equity, Since 31 Mar 21 | 532555
3%₹288 Cr16,818,783
Hindustan Unilever Ltd (Consumer Defensive)
Equity, Since 31 Jan 22 | HINDUNILVR
3%₹243 Cr944,092
↑ 33,332
State Bank of India (Financial Services)
Equity, Since 28 Feb 21 | SBIN
3%₹242 Cr4,376,857
↓ -2,141,715

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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