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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(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 Fund NAV Net Assets (Cr) 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 5 YR (%) 2024 (%) Kotak India EQ Contra Fund Growth ₹151.025
↑ 0.47 ₹4,472 2.4 16.1 -3.2 20.2 23.7 22.1 SBI Contra Fund Growth ₹381.432
↑ 0.89 ₹46,947 -0.9 10.6 -3 19.4 29.5 18.8 Invesco India Contra Fund Growth ₹136.07
↑ 0.22 ₹19,288 1.9 15.8 -2.1 19 22.4 30.1 Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 12 Sep 25 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 (₹4,472 Cr). Highest AUM (₹46,947 Cr). Lower mid AUM (₹19,288 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: 23.70% (lower mid). 5Y return: 29.55% (upper mid). 5Y return: 22.42% (bottom quartile). Point 6 3Y return: 20.20% (upper mid). 3Y return: 19.45% (lower mid). 3Y return: 19.04% (bottom quartile). Point 7 1Y return: -3.16% (bottom quartile). 1Y return: -3.03% (lower mid). 1Y return: -2.12% (upper mid). Point 8 Alpha: -1.10 (lower mid). Alpha: -4.66 (bottom quartile). Alpha: 3.76 (upper mid). Point 9 Sharpe: -0.51 (lower mid). Sharpe: -0.79 (bottom quartile). Sharpe: -0.22 (upper mid). Point 10 Information ratio: 1.57 (upper mid). Information ratio: 1.43 (lower mid). Information ratio: 1.25 (bottom quartile). Kotak India EQ Contra Fund
SBI Contra Fund
Invesco India Contra Fund
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 (12 Sep 25) ₹151.025 ↑ 0.47 (0.31 %) Net Assets (Cr) ₹4,472 on 31 Jul 25 Category Equity - Contra AMC Kotak Mahindra Asset Management Co Ltd Rating ☆☆☆ Risk Moderately High Expense Ratio 1.89 Sharpe Ratio -0.51 Information Ratio 1.57 Alpha Ratio -1.1 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 20 ₹10,000 31 Aug 21 ₹15,680 31 Aug 22 ₹16,476 31 Aug 23 ₹19,309 31 Aug 24 ₹29,941 31 Aug 25 ₹28,425 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 25 Duration Returns 1 Month 2.1% 3 Month 2.4% 6 Month 16.1% 1 Year -3.2% 3 Year 20.2% 5 Year 23.7% 10 Year 15 Year Since launch 14.4% Historical performance (Yearly) on absolute basis
Year Returns 2024 22.1% 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% Fund Manager information for Kotak India EQ Contra Fund
Name Since Tenure Shibani Kurian 9 May 19 6.32 Yr. Data below for Kotak India EQ Contra Fund as on 31 Jul 25
Equity Sector Allocation
Sector Value Financial Services 31.5% Industrials 11.14% Consumer Cyclical 10.44% Health Care 10.39% Technology 9.45% Basic Materials 6.63% Consumer Defensive 5.87% Energy 5.04% Utility 4.76% Communication Services 3.07% Asset Allocation
Asset Class Value Cash 1.71% Equity 98.29% Top Securities Holdings / Portfolio
Name Holding Value Quantity HDFC Bank Ltd (Financial Services)
Equity, Since 30 Sep 10 | HDFCBANK7% ₹316 Cr 1,566,432 ICICI Bank Ltd (Financial Services)
Equity, Since 30 Apr 18 | ICICIBANK6% ₹259 Cr 1,748,051 State Bank of India (Financial Services)
Equity, Since 31 Oct 16 | SBIN3% ₹151 Cr 1,897,000 Reliance Industries Ltd (Energy)
Equity, Since 30 Sep 08 | RELIANCE3% ₹147 Cr 1,056,648 Infosys Ltd (Technology)
Equity, Since 31 Oct 10 | INFY3% ₹142 Cr 943,800 Bharti Airtel Ltd (Communication Services)
Equity, Since 31 Oct 17 | BHARTIARTL3% ₹137 Cr 717,149 Mphasis Ltd (Technology)
Equity, Since 29 Feb 24 | 5262993% ₹128 Cr 457,653
↑ 18,000 Swiggy Ltd (Consumer Cyclical)
Equity, Since 30 Nov 24 | SWIGGY3% ₹116 Cr 2,879,328
↑ 220,000 Tech Mahindra Ltd (Technology)
Equity, Since 30 Jun 23 | 5327553% ₹114 Cr 782,000 Poonawalla Fincorp Ltd (Financial Services)
Equity, Since 31 Oct 24 | POONAWALLA2% ₹107 Cr 2,543,101 2. SBI Contra Fund
SBI Contra Fund
Growth Launch Date 6 May 05 NAV (11 Sep 25) ₹381.432 ↑ 0.89 (0.23 %) Net Assets (Cr) ₹46,947 on 31 Jul 25 Category Equity - Contra AMC SBI Funds Management Private Limited Rating ☆☆☆ Risk Moderately High Expense Ratio 1.53 Sharpe Ratio -0.8 Information Ratio 1.43 Alpha Ratio -4.66 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 20 ₹10,000 31 Aug 21 ₹17,645 31 Aug 22 ₹20,890 31 Aug 23 ₹26,014 31 Aug 24 ₹38,115 31 Aug 25 ₹35,690 Returns for SBI Contra Fund
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 12 Sep 25 Duration Returns 1 Month 2.1% 3 Month -0.9% 6 Month 10.6% 1 Year -3% 3 Year 19.4% 5 Year 29.5% 10 Year 15 Year Since launch 14.9% Historical performance (Yearly) on absolute basis
Year Returns 2024 18.8% 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% Fund Manager information for SBI Contra Fund
Name Since Tenure Dinesh Balachandran 7 May 18 7.32 Yr. Pradeep Kesavan 1 Dec 23 1.75 Yr. Data below for SBI Contra Fund as on 31 Jul 25
Equity Sector Allocation
Sector Value Financial Services 22.73% Basic Materials 9.47% Energy 9.26% Health Care 7.72% Technology 6.58% Consumer Cyclical 6.47% Consumer Defensive 6.29% Utility 4.57% Industrials 3.75% Communication Services 2.82% Real Estate 1.36% Asset Allocation
Asset Class Value Cash 18.47% Equity 81.01% Debt 0.52% Top Securities Holdings / Portfolio
Name Holding Value Quantity HDFC Bank Ltd (Financial Services)
Equity, Since 31 Aug 16 | HDFCBANK9% ₹4,082 Cr 20,224,629 Reliance Industries Ltd (Energy)
Equity, Since 31 Mar 23 | RELIANCE6% ₹2,741 Cr 19,717,567 ITC Ltd (Consumer Defensive)
Equity, Since 31 Jul 20 | ITC3% ₹1,597 Cr 38,766,741 Kotak Mahindra Bank Ltd (Financial Services)
Equity, Since 31 Mar 24 | KOTAKBANK3% ₹1,267 Cr 6,405,768 Biocon Ltd (Healthcare)
Equity, Since 30 Jun 21 | BIOCON2% ₹1,123 Cr 28,687,453 Punjab National Bank (Financial Services)
Equity, Since 30 Sep 22 | 5324612% ₹1,059 Cr 100,456,586 GAIL (India) Ltd (Utilities)
Equity, Since 28 Feb 21 | 5321552% ₹924 Cr 51,993,788 Tata Steel Ltd (Basic Materials)
Equity, Since 31 Jul 22 | TATASTEEL2% ₹916 Cr 57,995,525
↑ 5,000,000 Dabur India Ltd (Consumer Defensive)
Equity, Since 31 Dec 23 | 5000962% ₹902 Cr 17,046,663 Torrent Power Ltd (Utilities)
Equity, Since 31 Oct 21 | 5327792% ₹849 Cr 6,482,410 3. Invesco India Contra Fund
Invesco India Contra Fund
Growth Launch Date 11 Apr 07 NAV (12 Sep 25) ₹136.07 ↑ 0.22 (0.16 %) Net Assets (Cr) ₹19,288 on 31 Jul 25 Category Equity - Contra AMC Invesco Asset Management (India) Private Ltd Rating ☆☆☆☆ Risk Moderately High Expense Ratio 1.65 Sharpe Ratio -0.22 Information Ratio 1.25 Alpha Ratio 3.76 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 20 ₹10,000 31 Aug 21 ₹15,091 31 Aug 22 ₹15,950 31 Aug 23 ₹18,126 31 Aug 24 ₹27,626 31 Aug 25 ₹26,692 Returns for Invesco India Contra Fund
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 12 Sep 25 Duration Returns 1 Month 2.6% 3 Month 1.9% 6 Month 15.8% 1 Year -2.1% 3 Year 19% 5 Year 22.4% 10 Year 15 Year Since launch 15.2% Historical performance (Yearly) on absolute basis
Year Returns 2024 30.1% 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% Fund Manager information for Invesco India Contra Fund
Name Since Tenure Amit Ganatra 1 Dec 23 1.75 Yr. Taher Badshah 13 Jan 17 8.64 Yr. Data below for Invesco India Contra Fund as on 31 Jul 25
Equity Sector Allocation
Sector Value Financial Services 31.03% Consumer Cyclical 17.2% Health Care 13.7% Technology 9.84% Industrials 9.67% Basic Materials 4.62% Consumer Defensive 3.8% Communication Services 1.96% Real Estate 1.68% Energy 1.39% Utility 0.31% Asset Allocation
Asset Class Value Cash 1.94% Equity 98.06% Top Securities Holdings / Portfolio
Name Holding Value Quantity HDFC Bank Ltd (Financial Services)
Equity, Since 30 Apr 14 | HDFCBANK8% ₹1,503 Cr 7,445,884
↓ -357,019 ICICI Bank Ltd (Financial Services)
Equity, Since 31 May 17 | ICICIBANK7% ₹1,345 Cr 9,076,843
↓ -798,043 Infosys Ltd (Technology)
Equity, Since 30 Sep 13 | INFY5% ₹915 Cr 6,064,472
↓ -451,407 Eternal Ltd (Consumer Cyclical)
Equity, Since 30 Jun 23 | 5433204% ₹720 Cr 23,382,312 Mahindra & Mahindra Ltd (Consumer Cyclical)
Equity, Since 31 Oct 21 | M&M4% ₹686 Cr 2,141,610 Larsen & Toubro Ltd (Industrials)
Equity, Since 30 Sep 20 | LT3% ₹627 Cr 1,724,696
↑ 189,953 Axis Bank Ltd (Financial Services)
Equity, Since 30 Jun 20 | 5322153% ₹556 Cr 5,201,150 Apollo Hospitals Enterprise Ltd (Healthcare)
Equity, Since 31 Mar 24 | APOLLOHOSP3% ₹534 Cr 711,861 Coforge Ltd (Technology)
Equity, Since 31 Mar 22 | COFORGE2% ₹412 Cr 2,357,575 Bharti Airtel Ltd (Partly Paid Rs.1.25) (Communication Services)
Equity, Since 31 Oct 21 | 8901572% ₹378 Cr 2,628,845
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