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Top 3 Best Contra Funds to Invest in 2024
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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Best Performing Contra Funds to Invest in FY 24 - 25
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 (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 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 Fund NAV Net Assets (Cr) 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 5 YR (%) 2023 (%) SBI Contra Fund Growth ₹397.732
↑ 4.39 ₹37,846 8.1 18.7 43.2 28 32.1 38.2 Kotak India EQ Contra Fund Growth ₹156.212
↑ 0.26 ₹3,760 8.8 26 51.3 23.8 25.3 35 Invesco India Contra Fund Growth ₹139.28
↑ 0.26 ₹17,269 14 32.9 50.4 22.7 25.1 28.8 Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 12 Sep 24 Assets >= 100 Crore & Sorted on 3 year CAGR Returns.
1. SBI Contra Fund
CAGR/Annualized return of 17.9% since its launch. Ranked 48 in Contra category. Return for 2023 was 38.2% , 2022 was 12.8% and 2021 was 49.9% . SBI Contra Fund
Growth Launch Date 6 May 05 NAV (12 Sep 24) ₹397.732 ↑ 4.39 (1.12 %) Net Assets (Cr) ₹37,846 on 31 Jul 24 Category Equity - Contra AMC SBI Funds Management Private Limited Rating ☆☆☆ Risk Moderately High Expense Ratio 1.7 Sharpe Ratio 2.69 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 Aug 19 ₹10,000 31 Aug 20 ₹10,810 31 Aug 21 ₹19,073 31 Aug 22 ₹22,581 31 Aug 23 ₹28,120 31 Aug 24 ₹41,201 Returns for SBI Contra Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 12 Sep 24 Duration Returns 1 Month 2.4% 3 Month 8.1% 6 Month 18.7% 1 Year 43.2% 3 Year 28% 5 Year 32.1% 10 Year 15 Year Since launch 17.9% Historical performance (Yearly) on absolute basis
Year Returns 2023 38.2% 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% Fund Manager information for SBI Contra Fund
Name Since Tenure Dinesh Balachandran 7 May 18 6.24 Yr. Pradeep Kesavan 1 Dec 23 0.67 Yr. Data below for SBI Contra Fund as on 31 Jul 24
Equity Sector Allocation
Sector Value Financial Services 19.16% Basic Materials 9.46% Consumer Cyclical 8.59% Industrials 7.49% Energy 7.37% Utility 7.2% Technology 7.18% Health Care 7.08% Consumer Defensive 5.59% Communication Services 4.48% Real Estate 0.72% Asset Allocation
Asset Class Value Cash 13.21% Equity 84.47% Debt 2.32% Top Securities Holdings / Portfolio
Name Holding Value Quantity HDFC Bank Ltd (Financial Services)
Equity, Since 31 Aug 16 | HDFCBANK4% ₹1,523 Cr 9,423,129 GAIL (India) Ltd (Utilities)
Equity, Since 28 Feb 21 | 5321553% ₹992 Cr 41,173,788 Kotak Mahindra Bank Ltd (Financial Services)
Equity, Since 31 Mar 24 | KOTAKBANK2% ₹927 Cr 5,128,168 Indus Towers Ltd Ordinary Shares (Communication Services)
Equity, Since 30 Jun 24 | 5348162% ₹904 Cr 20,873,475 State Bank of India (Financial Services)
Equity, Since 31 Dec 10 | SBIN2% ₹895 Cr 10,254,269 Whirlpool of India Ltd (Consumer Cyclical)
Equity, Since 29 Feb 24 | 5002382% ₹866 Cr 4,040,000 Reliance Industries Ltd (Energy)
Equity, Since 31 Mar 23 | RELIANCE2% ₹842 Cr 2,795,375
↑ 228,250 ITC Ltd (Consumer Defensive)
Equity, Since 31 Jul 20 | ITC2% ₹831 Cr 16,766,741
↑ 579,115 Dabur India Ltd (Consumer Defensive)
Equity, Since 31 Dec 23 | 5000962% ₹813 Cr 12,788,283
↑ 5,227,171 Oil & Natural Gas Corp Ltd (Energy)
Equity, Since 31 Dec 22 | 5003122% ₹798 Cr 23,891,662 2. Kotak India EQ Contra Fund
CAGR/Annualized return of 15.4% since its launch. Ranked 30 in Contra category. Return for 2023 was 35% , 2022 was 7.4% and 2021 was 30.2% . Kotak India EQ Contra Fund
Growth Launch Date 27 Jul 05 NAV (13 Sep 24) ₹156.212 ↑ 0.26 (0.17 %) Net Assets (Cr) ₹3,760 on 31 Jul 24 Category Equity - Contra AMC Kotak Mahindra Asset Management Co Ltd Rating ☆☆☆ Risk Moderately High Expense Ratio 2.04 Sharpe Ratio 2.98 Information Ratio 1.3 Alpha Ratio 8.13 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 Aug 19 ₹10,000 31 Aug 20 ₹10,256 31 Aug 21 ₹16,082 31 Aug 22 ₹16,898 31 Aug 23 ₹19,803 31 Aug 24 ₹30,707 Returns for Kotak India EQ Contra Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 12 Sep 24 Duration Returns 1 Month 6% 3 Month 8.8% 6 Month 26% 1 Year 51.3% 3 Year 23.8% 5 Year 25.3% 10 Year 15 Year Since launch 15.4% Historical performance (Yearly) on absolute basis
Year Returns 2023 35% 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% Fund Manager information for Kotak India EQ Contra Fund
Name Since Tenure Shibani Kurian 9 May 19 5.23 Yr. Data below for Kotak India EQ Contra Fund as on 31 Jul 24
Equity Sector Allocation
Sector Value Financial Services 23.89% Technology 11.1% Industrials 11% Health Care 9.27% Consumer Cyclical 9.22% Consumer Defensive 8.63% Utility 6.53% Basic Materials 6.18% Energy 6.01% Communication Services 5.39% Real Estate 1.17% Asset Allocation
Asset Class Value Cash 1.62% Equity 98.38% Top Securities Holdings / Portfolio
Name Holding Value Quantity HDFC Bank Ltd (Financial Services)
Equity, Since 30 Sep 10 | HDFCBANK6% ₹208 Cr 1,285,432
↑ 140,000 ICICI Bank Ltd (Financial Services)
Equity, Since 30 Apr 18 | ICICIBANK4% ₹157 Cr 1,289,051 Infosys Ltd (Technology)
Equity, Since 31 Oct 10 | INFY4% ₹143 Cr 767,300
↑ 121,000 Reliance Industries Ltd (Energy)
Equity, Since 30 Sep 08 | RELIANCE3% ₹113 Cr 375,824 State Bank of India (Financial Services)
Equity, Since 31 Oct 16 | SBIN3% ₹109 Cr 1,252,000
↑ 184,000 Tech Mahindra Ltd (Technology)
Equity, Since 30 Jun 23 | 5327553% ₹98 Cr 629,000
↑ 107,000 Hindustan Unilever Ltd (Consumer Defensive)
Equity, Since 31 May 17 | HINDUNILVR3% ₹96 Cr 356,238
↑ 65,500 Mphasis Ltd (Technology)
Equity, Since 29 Feb 24 | 5262992% ₹91 Cr 313,653
↑ 21,000 NTPC Ltd (Utilities)
Equity, Since 30 Nov 20 | 5325552% ₹87 Cr 2,103,000 Bharti Airtel Ltd (Communication Services)
Equity, Since 31 Oct 17 | BHARTIARTL2% ₹85 Cr 569,149 3. Invesco India Contra Fund
CAGR/Annualized return of 16.3% since its launch. Ranked 11 in Contra category. Return for 2023 was 28.8% , 2022 was 3.8% and 2021 was 29.6% . Invesco India Contra Fund
Growth Launch Date 11 Apr 07 NAV (13 Sep 24) ₹139.28 ↑ 0.26 (0.19 %) Net Assets (Cr) ₹17,269 on 31 Jul 24 Category Equity - Contra AMC Invesco Asset Management (India) Private Ltd Rating ☆☆☆☆ Risk Moderately High Expense Ratio 1.7 Sharpe Ratio 2.9 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 Aug 19 ₹10,000 31 Aug 20 ₹11,062 31 Aug 21 ₹16,693 31 Aug 22 ₹17,644 31 Aug 23 ₹20,051 31 Aug 24 ₹30,560 Returns for Invesco India Contra Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 12 Sep 24 Duration Returns 1 Month 7.1% 3 Month 14% 6 Month 32.9% 1 Year 50.4% 3 Year 22.7% 5 Year 25.1% 10 Year 15 Year Since launch 16.3% Historical performance (Yearly) on absolute basis
Year Returns 2023 28.8% 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% Fund Manager information for Invesco India Contra Fund
Name Since Tenure Amit Ganatra 1 Dec 23 0.67 Yr. Taher Badshah 13 Jan 17 7.55 Yr. Data below for Invesco India Contra Fund as on 31 Jul 24
Equity Sector Allocation
Sector Value Financial Services 29.21% Consumer Cyclical 16.63% Industrials 13.96% Health Care 10.47% Technology 10.13% Utility 5.48% Basic Materials 5.05% Consumer Defensive 3.29% Energy 1.94% Communication Services 1.65% Real Estate 0.73% Asset Allocation
Asset Class Value Cash 0.85% Equity 99.15% Top Securities Holdings / Portfolio
Name Holding Value Quantity ICICI Bank Ltd (Financial Services)
Equity, Since 31 May 17 | ICICIBANK6% ₹1,093 Cr 8,994,374 Infosys Ltd (Technology)
Equity, Since 30 Sep 13 | INFY6% ₹1,022 Cr 5,472,876
↑ 513,150 HDFC Bank Ltd (Financial Services)
Equity, Since 30 Apr 14 | HDFCBANK5% ₹862 Cr 5,335,458 NTPC Ltd (Utilities)
Equity, Since 31 Mar 21 | 5325554% ₹687 Cr 16,504,431
↓ -657,243 Axis Bank Ltd (Financial Services)
Equity, Since 30 Jun 20 | 5322153% ₹600 Cr 5,149,212 Bharat Electronics Ltd (Industrials)
Equity, Since 31 Dec 18 | BEL3% ₹485 Cr 15,339,759
↓ -929,171 Mahindra & Mahindra Ltd (Consumer Cyclical)
Equity, Since 31 Oct 21 | M&M3% ₹482 Cr 1,656,077 Coforge Ltd (Technology)
Equity, Since 31 Mar 22 | COFORGE3% ₹465 Cr 737,232
↑ 77,737 State Bank of India (Financial Services)
Equity, Since 28 Feb 21 | SBIN3% ₹460 Cr 5,275,516 Sun Pharmaceuticals Industries Ltd (Healthcare)
Equity, Since 30 Nov 16 | SUNPHARMA2% ₹377 Cr 2,191,359
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