+91-22-48913909Top 3 Best Contra Funds to Invest in 2026
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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Fund Selection Methodology used to find 3 funds
Best Performing Contra Funds to Invest in FY 26 - 27
Fund NAV Net Assets (Cr) 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 5 YR (%) 2024 (%) Kotak India EQ Contra Fund Growth ₹157.579
↑ 0.63 ₹5,136 1.9 5.2 19.5 21.3 17.1 7.4 SBI Contra Fund Growth ₹393.41
↑ 1.35 ₹49,967 -0.7 4.8 11.4 19.9 20.5 6.1 Invesco India Contra Fund Growth ₹135.24
↑ 0.45 ₹20,658 -1.9 0.3 12.6 19.7 15.6 3.1 Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 18 Feb 26 Research Highlights & Commentary of 3 Funds showcased
Commentary Kotak India EQ Contra Fund SBI Contra Fund Invesco India Contra Fund Point 1 Bottom quartile AUM (₹5,136 Cr). Highest AUM (₹49,967 Cr). Lower mid AUM (₹20,658 Cr). Point 2 Oldest track record among peers (20 yrs). Established history (20+ yrs). Established history (18+ yrs). Point 3 Rating: 3★ (lower mid). Rating: 3★ (bottom quartile). Top rated. Point 4 Risk profile: Moderately High. Risk profile: Moderately High. Risk profile: Moderately High. Point 5 5Y return: 17.13% (lower mid). 5Y return: 20.53% (upper mid). 5Y return: 15.58% (bottom quartile). Point 6 3Y return: 21.30% (upper mid). 3Y return: 19.90% (lower mid). 3Y return: 19.68% (bottom quartile). Point 7 1Y return: 19.49% (upper mid). 1Y return: 11.43% (bottom quartile). 1Y return: 12.57% (lower mid). Point 8 Alpha: -0.26 (upper mid). Alpha: -3.65 (lower mid). Alpha: -4.24 (bottom quartile). Point 9 Sharpe: 0.16 (upper mid). Sharpe: 0.06 (lower mid). Sharpe: -0.12 (bottom quartile). Point 10 Information ratio: 1.40 (upper mid). Information ratio: 1.14 (lower mid). Information ratio: 0.97 (bottom quartile). Kotak India EQ Contra Fund
SBI Contra Fund
Invesco India Contra Fund
*List of funds based 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. Research Highlights for Kotak India EQ Contra Fund Below is the key information for Kotak India EQ Contra Fund Returns up to 1 year are on To provide the investors maximum growth opportunity through equity
investments in stocks of growth oriented sectors of the economy. Research Highlights for SBI Contra Fund 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. Research Highlights for Invesco India Contra Fund Below is the key information for Invesco India Contra Fund Returns up to 1 year are on Assets >= 100 Crore & Sorted on 3 year CAGR Returns.
1. Kotak India EQ Contra Fund
Kotak India EQ Contra Fund
Growth Launch Date 27 Jul 05 NAV (18 Feb 26) ₹157.579 ↑ 0.63 (0.40 %) Net Assets (Cr) ₹5,136 on 31 Dec 25 Category Equity - Contra AMC Kotak Mahindra Asset Management Co Ltd Rating ☆☆☆ Risk Moderately High Expense Ratio 1.89 Sharpe Ratio 0.16 Information Ratio 1.4 Alpha Ratio -0.26 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 Jan 21 ₹10,000 31 Jan 22 ₹13,244 31 Jan 23 ₹13,866 31 Jan 24 ₹19,724 31 Jan 25 ₹22,001 31 Jan 26 ₹24,268 Returns for Kotak India EQ Contra Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 18 Feb 26 Duration Returns 1 Month 1.6% 3 Month 1.9% 6 Month 5.2% 1 Year 19.5% 3 Year 21.3% 5 Year 17.1% 10 Year 15 Year Since launch 14.3% Historical performance (Yearly) on absolute basis
Year Returns 2024 7.4% 2023 22.1% 2022 35% 2021 7.4% 2020 30.2% 2019 15.2% 2018 10% 2017 2.6% 2016 35.4% 2015 7.1% Fund Manager information for Kotak India EQ Contra Fund
Name Since Tenure Shibani Kurian 9 May 19 6.74 Yr. Data below for Kotak India EQ Contra Fund as on 31 Dec 25
Equity Sector Allocation
Sector Value Financial Services 34.3% Technology 10.62% Industrials 10.25% Consumer Cyclical 10.21% Health Care 9.73% Basic Materials 9.54% Energy 4.82% Consumer Defensive 4.04% Communication Services 2.78% Utility 2.51% Asset Allocation
Asset Class Value Cash 1.21% Equity 98.79% Top Securities Holdings / Portfolio
Name Holding Value Quantity HDFC Bank Ltd (Financial Services)
Equity, Since 30 Sep 10 | HDFCBANK6% ₹318 Cr 3,426,864 ICICI Bank Ltd (Financial Services)
Equity, Since 30 Apr 18 | ICICIBANK5% ₹237 Cr 1,748,051 State Bank of India (Financial Services)
Equity, Since 31 Oct 16 | SBIN4% ₹204 Cr 1,897,000 Infosys Ltd (Technology)
Equity, Since 31 Oct 10 | INFY4% ₹186 Cr 1,135,075 Tech Mahindra Ltd (Technology)
Equity, Since 30 Jun 23 | TECHM3% ₹163 Cr 937,000
↓ -60,000 Shriram Finance Ltd (Financial Services)
Equity, Since 30 Jun 23 | SHRIRAMFIN3% ₹161 Cr 1,579,305 Reliance Industries Ltd (Energy)
Equity, Since 30 Sep 08 | RELIANCE3% ₹158 Cr 1,131,648
↑ 125,000 Hero MotoCorp Ltd (Consumer Cyclical)
Equity, Since 31 Oct 22 | HEROMOTOCO3% ₹146 Cr 264,700 Bharti Airtel Ltd (Communication Services)
Equity, Since 31 Oct 17 | BHARTIARTL3% ₹141 Cr 717,149 Maruti Suzuki India Ltd (Consumer Cyclical)
Equity, Since 31 Mar 14 | MARUTI3% ₹133 Cr 90,798 2. SBI Contra Fund
SBI Contra Fund
Growth Launch Date 6 May 05 NAV (17 Feb 26) ₹393.41 ↑ 1.35 (0.34 %) Net Assets (Cr) ₹49,967 on 31 Dec 25 Category Equity - Contra AMC SBI Funds Management Private Limited Rating ☆☆☆ Risk Moderately High Expense Ratio 1.53 Sharpe Ratio 0.06 Information Ratio 1.14 Alpha Ratio -3.65 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 Jan 21 ₹10,000 31 Jan 22 ₹14,611 31 Jan 23 ₹16,210 31 Jan 24 ₹23,519 31 Jan 25 ₹26,238 31 Jan 26 ₹28,029 Returns for SBI Contra Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 18 Feb 26 Duration Returns 1 Month 0.2% 3 Month -0.7% 6 Month 4.8% 1 Year 11.4% 3 Year 19.9% 5 Year 20.5% 10 Year 15 Year Since launch 14.8% Historical performance (Yearly) on absolute basis
Year Returns 2024 6.1% 2023 18.8% 2022 38.2% 2021 12.8% 2020 49.9% 2019 30.6% 2018 -1% 2017 -14.3% 2016 40.2% 2015 2.4% Fund Manager information for SBI Contra Fund
Name Since Tenure Dinesh Balachandran 7 May 18 7.75 Yr. Pradeep Kesavan 1 Dec 23 2.17 Yr. Data below for SBI Contra Fund as on 31 Dec 25
Equity Sector Allocation
Sector Value Financial Services 22.55% Basic Materials 9.61% Energy 9.21% Technology 8.84% Health Care 8.03% Consumer Cyclical 7.96% Consumer Defensive 4.91% Utility 4.3% Communication Services 3.58% Industrials 3.32% Real Estate 1.37% Asset Allocation
Asset Class Value Cash 3.85% Equity 93.11% Debt 3.03% Top Securities Holdings / Portfolio
Name Holding Value Quantity Nifty Index 24-Feb-26
Derivatives, Since 31 Jan 26 | -10% ₹4,827 Cr 1,899,300
↑ 1,899,300 HDFC Bank Ltd (Financial Services)
Equity, Since 31 Aug 16 | HDFCBANK8% ₹3,759 Cr 40,449,258 Reliance Industries Ltd (Energy)
Equity, Since 31 Mar 23 | RELIANCE6% ₹2,751 Cr 19,717,567 Biocon Ltd (Healthcare)
Equity, Since 30 Jun 21 | BIOCON3% ₹1,470 Cr 40,073,925
↑ 11,266,460 Punjab National Bank (Financial Services)
Equity, Since 30 Sep 22 | PNB3% ₹1,450 Cr 115,846,832
↑ 2,590,246 Tata Steel Ltd (Basic Materials)
Equity, Since 31 Jul 22 | TATASTEEL3% ₹1,430 Cr 74,067,300 Kotak Mahindra Bank Ltd (Financial Services)
Equity, Since 31 Mar 24 | KOTAKBANK3% ₹1,307 Cr 32,028,840 Indus Towers Ltd Ordinary Shares (Communication Services)
Equity, Since 30 Jun 24 | INDUSTOWER2% ₹1,123 Cr 25,286,692 ITC Ltd (Consumer Defensive)
Equity, Since 31 Jul 20 | ITC2% ₹999 Cr 31,014,741 Dabur India Ltd (Consumer Defensive)
Equity, Since 31 Dec 23 | DABUR2% ₹955 Cr 18,846,663 3. Invesco India Contra Fund
Invesco India Contra Fund
Growth Launch Date 11 Apr 07 NAV (18 Feb 26) ₹135.24 ↑ 0.45 (0.33 %) Net Assets (Cr) ₹20,658 on 31 Dec 25 Category Equity - Contra AMC Invesco Asset Management (India) Private Ltd Rating ☆☆☆☆ Risk Moderately High Expense Ratio 1.65 Sharpe Ratio -0.12 Information Ratio 0.97 Alpha Ratio -4.24 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 Jan 21 ₹10,000 31 Jan 22 ₹13,110 31 Jan 23 ₹13,272 31 Jan 24 ₹17,894 31 Jan 25 ₹21,310 31 Jan 26 ₹22,500 Returns for Invesco India Contra Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 18 Feb 26 Duration Returns 1 Month -1% 3 Month -1.9% 6 Month 0.3% 1 Year 12.6% 3 Year 19.7% 5 Year 15.6% 10 Year 15 Year Since launch 14.8% Historical performance (Yearly) on absolute basis
Year Returns 2024 3.1% 2023 30.1% 2022 28.8% 2021 3.8% 2020 29.6% 2019 21.2% 2018 5.9% 2017 -3.3% 2016 45.6% 2015 6.7% Fund Manager information for Invesco India Contra Fund
Name Since Tenure Taher Badshah 13 Jan 17 9.06 Yr. Data below for Invesco India Contra Fund as on 31 Dec 25
Equity Sector Allocation
Sector Value Financial Services 32.6% Consumer Cyclical 16.63% Industrials 11.69% Health Care 10.76% Technology 10.54% Energy 4.78% Basic Materials 4.25% Real Estate 2.12% Communication Services 2.06% Consumer Defensive 1.69% Asset Allocation
Asset Class Value Cash 0.87% Equity 99.11% Other 0% Top Securities Holdings / Portfolio
Name Holding Value Quantity HDFC Bank Ltd (Financial Services)
Equity, Since 30 Apr 14 | HDFCBANK7% ₹1,475 Cr 15,869,516 ICICI Bank Ltd (Financial Services)
Equity, Since 31 May 17 | ICICIBANK6% ₹1,134 Cr 8,368,462 Infosys Ltd (Technology)
Equity, Since 30 Sep 13 | INFY5% ₹956 Cr 5,827,803 Mahindra & Mahindra Ltd (Consumer Cyclical)
Equity, Since 31 Oct 21 | M&M4% ₹763 Cr 2,222,444 Larsen & Toubro Ltd (Industrials)
Equity, Since 30 Sep 20 | LT4% ₹747 Cr 1,900,679 Axis Bank Ltd (Financial Services)
Equity, Since 30 Jun 20 | AXISBANK4% ₹713 Cr 5,201,150 Reliance Industries Ltd (Energy)
Equity, Since 31 Oct 25 | RELIANCE3% ₹681 Cr 4,878,249
↑ 969,522 Cholamandalam Investment and Finance Co Ltd (Financial Services)
Equity, Since 31 Dec 21 | CHOLAFIN2% ₹475 Cr 2,912,482 Bharti Airtel Ltd (Partly Paid Rs.1.25) (Communication Services)
Equity, Since 31 Oct 21 | 8901572% ₹411 Cr 2,628,845 Apollo Hospitals Enterprise Ltd (Healthcare)
Equity, Since 31 Mar 24 | APOLLOHOSP2% ₹397 Cr 569,764
↓ -126,705
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!
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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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