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Top 3 Best Contra Funds to Invest in 2023
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 23 - 24
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 (%) 2022 (%) SBI Contra Fund Growth ₹267.29
↑ 0.94 ₹13,461 11.9 17.5 23.9 36.1 18.7 12.8 Kotak India EQ Contra Fund Growth ₹99.695
↑ 0.50 ₹1,780 10.3 14.8 19.6 23.8 13.3 7.4 Invesco India Contra Fund Growth ₹89.03
↑ 0.34 ₹11,025 10.3 14.8 15.3 21.2 12.3 3.8 Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 21 Aug 23 Assets >= 100 Crore & Sorted on 3 year CAGR Returns.
1. SBI Contra Fund
CAGR/Annualized return of 16.5% since its launch. Ranked 48 in Contra category. Return for 2022 was 12.8% , 2021 was 49.9% and 2020 was 30.6% . SBI Contra Fund
Growth Launch Date 6 May 05 NAV (21 Aug 23) ₹267.29 ↑ 0.94 (0.35 %) Net Assets (Cr) ₹13,461 on 31 Jul 23 Category Equity - Contra AMC SBI Funds Management Private Limited Rating ☆☆☆ Risk Moderately High Expense Ratio 1.92 Sharpe Ratio 2.09 Information Ratio 2.34 Alpha Ratio 12.15 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 30 Sep 18 ₹10,000 30 Sep 19 ₹9,905 30 Sep 20 ₹10,185 30 Sep 21 ₹18,951 30 Sep 22 ₹21,093 30 Sep 23 ₹27,211 Returns for SBI Contra Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 21 Aug 23 Duration Returns 1 Month 1% 3 Month 11.9% 6 Month 17.5% 1 Year 23.9% 3 Year 36.1% 5 Year 18.7% 10 Year 15 Year Since launch 16.5% Historical performance (Yearly) on absolute basis
Year Returns 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
Name Since Tenure Dinesh Balachandran 7 May 18 5.32 Yr. Mohit Jain 5 May 18 5.33 Yr. Data below for SBI Contra Fund as on 31 Jul 23
Equity Sector Allocation
Sector Value Financial Services 18.41% Basic Materials 11.74% Industrials 11.6% Technology 7.9% Health Care 7.89% Utility 7.75% Energy 6.59% Consumer Cyclical 5.86% Consumer Defensive 3.76% Real Estate 0.95% Communication Services 0.92% Asset Allocation
Asset Class Value Cash 16.63% Equity 83.37% Top Securities Holdings / Portfolio
Name Holding Value Quantity Cognizant Technology Solutions Corp Class A (Technology)
Equity, Since 28 Feb 23 | CTSH3% ₹491 Cr 828,500 HDFC Bank Ltd (Financial Services)
Equity, Since 31 Aug 16 | HDFCBANK3% ₹446 Cr 2,837,072 GAIL (India) Ltd (Utilities)
Equity, Since 28 Feb 21 | 5321553% ₹428 Cr 37,211,295 Coforge Ltd (Technology)
Equity, Since 31 Aug 23 | COFORGE2% ₹320 Cr 585,000
↑ 585,000 Delhivery Ltd (Industrials)
Equity, Since 31 Oct 22 | 5435292% ₹313 Cr 7,156,013 ICICI Bank Ltd (Financial Services)
Equity, Since 28 Feb 17 | ICICIBANK2% ₹301 Cr 3,140,345 182 DTB 29092023
Sovereign Bonds | -2% ₹298 Cr 30,000,000 91 DTB 09112023
Sovereign Bonds | -2% ₹296 Cr 30,000,000
↑ 30,000,000 91 DTB 17112023
Sovereign Bonds | -2% ₹296 Cr 30,000,000
↑ 30,000,000 Axis Bank Ltd (Financial Services)
Equity, Since 31 May 19 | 5322152% ₹292 Cr 3,004,255 2. Kotak India EQ Contra Fund
CAGR/Annualized return of 13.6% since its launch. Ranked 30 in Contra category. Return for 2022 was 7.4% , 2021 was 30.2% and 2020 was 15.2% . Kotak India EQ Contra Fund
Growth Launch Date 27 Jul 05 NAV (22 Aug 23) ₹99.695 ↑ 0.50 (0.51 %) Net Assets (Cr) ₹1,780 on 31 Jul 23 Category Equity - Contra AMC Kotak Mahindra Asset Management Co Ltd Rating ☆☆☆ Risk Moderately High Expense Ratio 2.03 Sharpe Ratio 1.44 Information Ratio 0.11 Alpha Ratio 5.94 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 30 Sep 18 ₹10,000 30 Sep 19 ₹10,514 30 Sep 20 ₹10,441 30 Sep 21 ₹16,646 30 Sep 22 ₹16,612 30 Sep 23 ₹20,541 Returns for Kotak India EQ Contra Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 21 Aug 23 Duration Returns 1 Month 1% 3 Month 10.3% 6 Month 14.8% 1 Year 19.6% 3 Year 23.8% 5 Year 13.3% 10 Year 15 Year Since launch 13.6% Historical performance (Yearly) on absolute basis
Year Returns 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
Name Since Tenure Shibani Kurian 9 May 19 4.32 Yr. Data below for Kotak India EQ Contra Fund as on 31 Jul 23
Equity Sector Allocation
Sector Value Financial Services 28.19% Technology 11.71% Consumer Cyclical 11.1% Industrials 9.13% Health Care 8.7% Consumer Defensive 6.93% Basic Materials 6.44% Energy 5.91% Utility 4.56% Communication Services 3.93% Real Estate 1.58% Asset Allocation
Asset Class Value Cash 1.81% Equity 98.19% Top Securities Holdings / Portfolio
Name Holding Value Quantity HDFC Bank Ltd (Financial Services)
Equity, Since 30 Sep 10 | HDFCBANK5% ₹93 Cr 590,432 Infosys Ltd (Technology)
Equity, Since 31 Oct 10 | INFY5% ₹83 Cr 578,800
↑ 45,000 Reliance Industries Ltd (Energy)
Equity, Since 30 Sep 08 | RELIANCE3% ₹53 Cr 218,824 ICICI Bank Ltd (Financial Services)
Equity, Since 30 Apr 18 | ICICIBANK3% ₹51 Cr 533,051
↓ -18,000 Tech Mahindra Ltd (Technology)
Equity, Since 30 Jun 23 | 5327553% ₹50 Cr 417,000
↑ 111,000 NTPC Ltd (Utilities)
Equity, Since 30 Nov 20 | 5325553% ₹46 Cr 2,083,000
↑ 85,000 UltraTech Cement Ltd (Basic Materials)
Equity, Since 30 Jun 19 | ULTRACEMCO3% ₹45 Cr 54,700 ITC Ltd (Consumer Defensive)
Equity, Since 31 Jan 08 | ITC2% ₹45 Cr 1,014,000
↓ -154,000 Bharti Airtel Ltd (Communication Services)
Equity, Since 31 Oct 17 | BHARTIARTL2% ₹41 Cr 482,149 Exide Industries Ltd (Consumer Cyclical)
Equity, Since 30 Nov 22 | 5000862% ₹41 Cr 1,541,000 3. Invesco India Contra Fund
CAGR/Annualized return of 14.3% since its launch. Ranked 11 in Contra category. Return for 2022 was 3.8% , 2021 was 29.6% and 2020 was 21.2% . Invesco India Contra Fund
Growth Launch Date 11 Apr 07 NAV (22 Aug 23) ₹89.03 ↑ 0.34 (0.38 %) Net Assets (Cr) ₹11,025 on 31 Jul 23 Category Equity - Contra AMC Invesco Asset Management (India) Private Ltd Rating ☆☆☆☆ Risk Moderately High Expense Ratio 1.8 Sharpe Ratio 0.99 Information Ratio -0.71 Alpha Ratio 1.58 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 30 Sep 18 ₹10,000 30 Sep 19 ₹10,159 30 Sep 20 ₹10,613 30 Sep 21 ₹16,645 30 Sep 22 ₹16,841 30 Sep 23 ₹19,976 Returns for Invesco India Contra Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 21 Aug 23 Duration Returns 1 Month 1.1% 3 Month 10.3% 6 Month 14.8% 1 Year 15.3% 3 Year 21.2% 5 Year 12.3% 10 Year 15 Year Since launch 14.3% Historical performance (Yearly) on absolute basis
Year Returns 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
Name Since Tenure Taher Badshah 13 Jan 17 6.63 Yr. Dhimant Kothari 19 May 20 3.29 Yr. Data below for Invesco India Contra Fund as on 31 Jul 23
Equity Sector Allocation
Sector Value Financial Services 28.51% Technology 17.15% Industrials 15.19% Consumer Cyclical 13.31% Health Care 7.82% Consumer Defensive 4.63% Utility 4.18% Energy 2.92% Real Estate 1.8% Basic Materials 1.55% Communication Services 1.42% Asset Allocation
Asset Class Value Cash 2.08% Equity 97.92% Top Securities Holdings / Portfolio
Name Holding Value Quantity Infosys Ltd (Technology)
Equity, Since 30 Sep 13 | INFY9% ₹979 Cr 6,821,331
↑ 122,366 HDFC Bank Ltd (Financial Services)
Equity, Since 30 Apr 14 | HDFCBANK7% ₹808 Cr 5,138,677 ICICI Bank Ltd (Financial Services)
Equity, Since 31 May 17 | ICICIBANK5% ₹612 Cr 6,382,176 Larsen & Toubro Ltd (Industrials)
Equity, Since 30 Sep 20 | LT3% ₹388 Cr 1,435,051 NTPC Ltd Shs Dematerialised (Utilities)
Equity, Since 31 Mar 21 | 5325553% ₹386 Cr 17,505,739 State Bank of India (Financial Services)
Equity, Since 28 Feb 21 | SBIN3% ₹327 Cr 5,833,668 Reliance Industries Ltd (Energy)
Equity, Since 31 Aug 19 | RELIANCE3% ₹326 Cr 1,354,248 Axis Bank Ltd (Financial Services)
Equity, Since 30 Jun 20 | 5322152% ₹263 Cr 2,699,158
↓ -122,312 Sun Pharmaceuticals Industries Ltd (Healthcare)
Equity, Since 30 Nov 16 | SUNPHARMA2% ₹262 Cr 2,356,449
↑ 174,004 Mahindra & Mahindra Ltd (Consumer Cyclical)
Equity, Since 31 Oct 21 | M&M2% ₹251 Cr 1,590,449
↓ -84,148
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