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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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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 (%) 2024 (%) SBI Contra Fund Growth ₹378.213
↑ 3.54 ₹42,220 7.3 1.9 8.1 25.6 36.3 18.8 Kotak India EQ Contra Fund Growth ₹145.613
↑ 0.46 ₹3,935 10.3 1.3 7.9 24.4 28.2 22.1 Invesco India Contra Fund Growth ₹132.81
↑ 0.65 ₹17,265 10.4 2.1 15.1 24.3 27.2 30.1 Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 15 May 25 Assets >= 100 Crore
& Sorted on 3 year CAGR Returns
.
1. SBI Contra Fund
CAGR/Annualized
return of 15.1% since its launch. Ranked 48 in Contra
category. Return for 2024 was 18.8% , 2023 was 38.2% and 2022 was 12.8% . SBI Contra Fund
Growth Launch Date 6 May 05 NAV (15 May 25) ₹378.213 ↑ 3.54 (0.94 %) Net Assets (Cr) ₹42,220 on 31 Mar 25 Category Equity - Contra AMC SBI Funds Management Private Limited Rating ☆☆☆ Risk Moderately High Expense Ratio 1.7 Sharpe Ratio 0.07 Information Ratio 1.73 Alpha Ratio 0.22 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 Apr 20 ₹10,000 30 Apr 21 ₹18,096 30 Apr 22 ₹24,040 30 Apr 23 ₹27,612 30 Apr 24 ₹41,353 30 Apr 25 ₹43,228 Returns for SBI Contra Fund
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 15 May 25 Duration Returns 1 Month 5.9% 3 Month 7.3% 6 Month 1.9% 1 Year 8.1% 3 Year 25.6% 5 Year 36.3% 10 Year 15 Year Since launch 15.1% 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 6.99 Yr. Pradeep Kesavan 1 Dec 23 1.41 Yr. Data below for SBI Contra Fund as on 31 Mar 25
Equity Sector Allocation
Sector Value Financial Services 22.87% Energy 9.37% Basic Materials 7.12% Health Care 7.02% Consumer Cyclical 6.52% Technology 6.11% Consumer Defensive 5.48% Utility 5.17% Industrials 3.57% Communication Services 3.18% Real Estate 1.32% Asset Allocation
Asset Class Value Cash 22.04% Equity 77.73% Debt 0.23% Top Securities Holdings / Portfolio
Name Holding Value Quantity HDFC Bank Ltd (Financial Services)
Equity, Since 31 Aug 16 | HDFCBANK9% ₹3,893 Cr 20,224,629 Reliance Industries Ltd (Energy)
Equity, Since 31 Mar 23 | RELIANCE6% ₹2,770 Cr 19,717,567
↑ 5,689,317 Kotak Mahindra Bank Ltd (Financial Services)
Equity, Since 31 Mar 24 | KOTAKBANK3% ₹1,414 Cr 6,405,768 ITC Ltd (Consumer Defensive)
Equity, Since 31 Jul 20 | ITC3% ₹1,140 Cr 26,766,741
↑ 10,000,000 GAIL (India) Ltd (Utilities)
Equity, Since 28 Feb 21 | 5321552% ₹983 Cr 51,993,788 Torrent Power Ltd (Utilities)
Equity, Since 31 Oct 21 | 5327792% ₹949 Cr 6,163,300 Punjab National Bank (Financial Services)
Equity, Since 30 Sep 22 | 5324612% ₹846 Cr 84,411,174
↑ 15,185,733 Dabur India Ltd (Consumer Defensive)
Equity, Since 31 Dec 23 | 5000962% ₹831 Cr 17,046,663 Indus Towers Ltd Ordinary Shares (Communication Services)
Equity, Since 30 Jun 24 | 5348162% ₹812 Cr 19,886,692 ICICI Bank Ltd (Financial Services)
Equity, Since 28 Feb 17 | ICICIBANK2% ₹754 Cr 5,281,550 2. Kotak India EQ Contra Fund
CAGR/Annualized
return of 14.5% since its launch. Ranked 30 in Contra
category. Return for 2024 was 22.1% , 2023 was 35% and 2022 was 7.4% . Kotak India EQ Contra Fund
Growth Launch Date 27 Jul 05 NAV (16 May 25) ₹145.613 ↑ 0.46 (0.32 %) Net Assets (Cr) ₹3,935 on 31 Mar 25 Category Equity - Contra AMC Kotak Mahindra Asset Management Co Ltd Rating ☆☆☆ Risk Moderately High Expense Ratio 2.04 Sharpe Ratio 0.1 Information Ratio 1.51 Alpha Ratio 0.91 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 Apr 20 ₹10,000 30 Apr 21 ₹15,447 30 Apr 22 ₹18,302 30 Apr 23 ₹19,878 30 Apr 24 ₹29,955 30 Apr 25 ₹31,306 Returns for Kotak India EQ Contra Fund
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 15 May 25 Duration Returns 1 Month 5.9% 3 Month 10.3% 6 Month 1.3% 1 Year 7.9% 3 Year 24.4% 5 Year 28.2% 10 Year 15 Year Since launch 14.5% 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 5.98 Yr. Data below for Kotak India EQ Contra Fund as on 31 Mar 25
Equity Sector Allocation
Sector Value Financial Services 31.81% Technology 12.17% Consumer Cyclical 9.73% Industrials 9.42% Health Care 8.1% Basic Materials 7.45% Consumer Defensive 5.77% Utility 4.88% Energy 4.6% Communication Services 2.96% Real Estate 0.88% Asset Allocation
Asset Class Value Cash 2.23% Equity 97.77% Top Securities Holdings / Portfolio
Name Holding Value Quantity HDFC Bank Ltd (Financial Services)
Equity, Since 30 Sep 10 | HDFCBANK7% ₹256 Cr 1,402,432
↑ 112,000 ICICI Bank Ltd (Financial Services)
Equity, Since 30 Apr 18 | ICICIBANK6% ₹240 Cr 1,780,051 State Bank of India (Financial Services)
Equity, Since 31 Oct 16 | SBIN4% ₹145 Cr 1,877,000 Infosys Ltd (Technology)
Equity, Since 31 Oct 10 | INFY4% ₹142 Cr 903,800
↓ -65,000 Bharti Airtel Ltd (Communication Services)
Equity, Since 31 Oct 17 | BHARTIARTL3% ₹117 Cr 672,149 Tech Mahindra Ltd (Technology)
Equity, Since 30 Jun 23 | 5327553% ₹107 Cr 752,000 Mphasis Ltd (Technology)
Equity, Since 29 Feb 24 | 5262993% ₹105 Cr 419,653 Axis Bank Ltd (Financial Services)
Equity, Since 30 Nov 18 | 5322152% ₹96 Cr 873,000 Reliance Industries Ltd (Energy)
Equity, Since 30 Sep 08 | RELIANCE2% ₹96 Cr 751,648 UltraTech Cement Ltd (Basic Materials)
Equity, Since 30 Jun 19 | 5325382% ₹93 Cr 81,150 3. Invesco India Contra Fund
CAGR/Annualized
return of 15.4% since its launch. Ranked 11 in Contra
category. Return for 2024 was 30.1% , 2023 was 28.8% and 2022 was 3.8% . Invesco India Contra Fund
Growth Launch Date 11 Apr 07 NAV (16 May 25) ₹132.81 ↑ 0.65 (0.49 %) Net Assets (Cr) ₹17,265 on 31 Mar 25 Category Equity - Contra AMC Invesco Asset Management (India) Private Ltd Rating ☆☆☆☆ Risk Moderately High Expense Ratio 1.7 Sharpe Ratio 0.44 Information Ratio 1.13 Alpha Ratio 7.63 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 Apr 20 ₹10,000 30 Apr 21 ₹15,054 30 Apr 22 ₹17,706 30 Apr 23 ₹18,722 30 Apr 24 ₹27,374 30 Apr 25 ₹30,591 Returns for Invesco India Contra Fund
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 15 May 25 Duration Returns 1 Month 6.3% 3 Month 10.4% 6 Month 2.1% 1 Year 15.1% 3 Year 24.3% 5 Year 27.2% 10 Year 15 Year Since launch 15.4% 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 1.41 Yr. Taher Badshah 13 Jan 17 8.3 Yr. Data below for Invesco India Contra Fund as on 31 Mar 25
Equity Sector Allocation
Sector Value Financial Services 33.74% Health Care 14.71% Consumer Cyclical 14.3% Technology 9.63% Industrials 8.65% Basic Materials 4.58% Consumer Defensive 3.92% Utility 2.77% Communication Services 2.11% Energy 1.33% Real Estate 1.24% Asset Allocation
Asset Class Value Cash 1.27% Equity 98.73% Top Securities Holdings / Portfolio
Name Holding Value Quantity HDFC Bank Ltd (Financial Services)
Equity, Since 30 Apr 14 | HDFCBANK8% ₹1,454 Cr 7,951,434 ICICI Bank Ltd (Financial Services)
Equity, Since 31 May 17 | ICICIBANK8% ₹1,356 Cr 10,059,466 Infosys Ltd (Technology)
Equity, Since 30 Sep 13 | INFY6% ₹965 Cr 6,141,812 Axis Bank Ltd (Financial Services)
Equity, Since 30 Jun 20 | 5322154% ₹610 Cr 5,535,787 Mahindra & Mahindra Ltd (Consumer Cyclical)
Equity, Since 31 Oct 21 | M&M3% ₹571 Cr 2,141,610 NTPC Ltd (Utilities)
Equity, Since 31 Mar 21 | 5325553% ₹478 Cr 13,353,855 Apollo Hospitals Enterprise Ltd (Healthcare)
Equity, Since 31 Mar 24 | APOLLOHOSP3% ₹471 Cr 711,861 Larsen & Toubro Ltd (Industrials)
Equity, Since 30 Sep 20 | LT3% ₹456 Cr 1,304,935 Bharat Electronics Ltd (Industrials)
Equity, Since 31 Dec 18 | BEL3% ₹443 Cr 14,694,204 Eternal Ltd (Consumer Cyclical)
Equity, Since 30 Jun 23 | 5433202% ₹413 Cr 20,486,919
↑ 1,522,898
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