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Top 3 Best Contra Funds to Invest in 2020- Fincash

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Top 3 Best Contra Funds to Invest in 2020

Updated on September 23, 2020 , 7876 views

Are you the kind of investor who likes taking a little adventure in investments? If yes, then you need to know about contra funds. Contra is the 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.

best-contra-funds

So, let’s know more about contra Mutual Funds.

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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.

Best Performing Contra Funds to Invest in FY 20 - 21

FundNAVNet Assets (Cr)3 MO (%)6 MO (%)1 YR (%)3 YR (%)5 YR (%)2019 (%)
Invesco India Contra Fund Growth ₹48.16
↑ 1.12
₹5,0197.435.43.75.69.95.9
Kotak India EQ Contra Fund Growth ₹51.225
↑ 1.24
₹8188.335.2-2.34.48.610
SBI Contra Fund Growth ₹102.874
↑ 2.35
₹1,33012.142.41.1-1.63.9-1
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 25 Sep 20
*List of funds based on Assets >= 100 Crore & Sorted on 3 year CAGR Returns.

1. Invesco India Contra Fund

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 CAGR/Annualized return of 12.4% since its launch.  Ranked 11 in Contra category.  Return for 2019 was 5.9% , 2018 was -3.3% and 2017 was 45.6% .

Below is the key information for Invesco India Contra Fund

Invesco India Contra Fund
Growth
Launch Date 11 Apr 07
NAV (25 Sep 20) ₹48.16 ↑ 1.12   (2.38 %)
Net Assets (Cr) ₹5,019 on 31 Aug 20
Category Equity - Contra
AMC Invesco Asset Management (India) Private Ltd
Rating
Risk Moderately High
Expense Ratio 2.02
Sharpe Ratio 0.33
Information Ratio 1.02
Alpha Ratio 5.69
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.

DateValue
31 Aug 15₹10,000
31 Aug 16₹11,454
31 Aug 17₹13,500
31 Aug 18₹16,676
31 Aug 19₹14,841
31 Aug 20₹16,417

Invesco India Contra Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹300,000
expected amount after 5 Years is ₹385,859.
Net Profit of ₹85,859
Invest Now

Returns for Invesco India Contra Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 25 Sep 20

DurationReturns
1 Month -4.5%
3 Month 7.4%
6 Month 35.4%
1 Year 3.7%
3 Year 5.6%
5 Year 9.9%
10 Year
15 Year
Since launch 12.4%
Historical performance (Yearly) on absolute basis
YearReturns
2019 5.9%
2018 -3.3%
2017 45.6%
2016 6.7%
2015 4%
2014 63%
2013 4.7%
2012 30.7%
2011 -22.1%
2010 12.9%
Fund Manager information for Invesco India Contra Fund
NameSinceTenure
Taher Badshah10 Jan 173.64 Yr.
Dhimant Kothari19 May 200.29 Yr.

Data below for Invesco India Contra Fund as on 31 Aug 20

Equity Sector Allocation
SectorValue
Financial Services27.45%
Technology13.3%
Energy13.26%
Consumer Cyclical10.03%
Health Care8.5%
Industrials6.3%
Utility5.44%
Communication Services4.83%
Basic Materials3.96%
Consumer Defensive2.94%
Real Estate1.93%
Asset Allocation
Asset ClassValue
Cash2.05%
Equity97.95%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Reliance Industries Ltd (Energy)
Equity, Since 31 Aug 19 | RELIANCE
10%₹500 Cr2,403,732
HDFC Bank Ltd (Financial Services)
Equity, Since 30 Apr 14 | HDFCBANK
9%₹428 Cr3,832,632
↓ -71,355
ICICI Bank Ltd (Financial Services)
Equity, Since 31 May 17 | ICICIBANK
7%₹360 Cr9,123,924
Infosys Ltd (Technology)
Equity, Since 30 Sep 13 | INFY
7%₹331 Cr3,560,113
↓ -228,657
Bharti Airtel Ltd (Communication Services)
Equity, Since 31 Oct 18 | BHARTIARTL
5%₹243 Cr4,728,740
↑ 93,490
Axis Bank Ltd (Financial Services)
Equity, Since 30 Jun 20 | 532215
5%₹226 Cr4,548,524
Sun Pharmaceuticals Industries Ltd (Healthcare)
Equity, Since 30 Nov 16 | SUNPHARMA
3%₹160 Cr3,081,221
HCL Technologies Ltd (Technology)
Equity, Since 30 Apr 19 | HCLTECH
3%₹126 Cr1,820,892
Apollo Hospitals Enterprise Ltd (Healthcare)
Equity, Since 30 Sep 17 | APOLLOHOSP
2%₹120 Cr731,434
United Spirits Ltd (Consumer Defensive)
Equity, Since 30 Jun 17 | 532432
2%₹114 Cr2,088,170

2. Kotak India EQ Contra Fund

(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 CAGR/Annualized return of 11.4% since its launch.  Ranked 30 in Contra category.  Return for 2019 was 10% , 2018 was 2.6% and 2017 was 35.4% .

Below is the key information for Kotak India EQ Contra Fund

Kotak India EQ Contra Fund
Growth
Launch Date 27 Jul 05
NAV (25 Sep 20) ₹51.225 ↑ 1.24   (2.47 %)
Net Assets (Cr) ₹818 on 31 Aug 20
Category Equity - Contra
AMC Kotak Mahindra Asset Management Co Ltd
Rating
Risk Moderately High
Expense Ratio 2.32
Sharpe Ratio 0.1
Information Ratio -0.23
Alpha Ratio -0.94
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.

DateValue
31 Aug 15₹10,000
31 Aug 16₹11,256
31 Aug 17₹13,381
31 Aug 18₹15,804
31 Aug 19₹14,799
31 Aug 20₹15,178

Kotak India EQ Contra Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹300,000
expected amount after 5 Years is ₹376,357.
Net Profit of ₹76,357
Invest Now

Returns for Kotak India EQ Contra Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 25 Sep 20

DurationReturns
1 Month -3.1%
3 Month 8.3%
6 Month 35.2%
1 Year -2.3%
3 Year 4.4%
5 Year 8.6%
10 Year
15 Year
Since launch 11.4%
Historical performance (Yearly) on absolute basis
YearReturns
2019 10%
2018 2.6%
2017 35.4%
2016 7.1%
2015 -3.4%
2014 39.3%
2013 7.4%
2012 33.2%
2011 -23.8%
2010 15.6%
Fund Manager information for Kotak India EQ Contra Fund
NameSinceTenure
Shibani Kurian9 May 191.32 Yr.

Data below for Kotak India EQ Contra Fund as on 31 Aug 20

Equity Sector Allocation
SectorValue
Financial Services26.37%
Technology13.85%
Energy11.89%
Consumer Cyclical11.37%
Basic Materials8.58%
Industrials8.51%
Health Care5.17%
Consumer Defensive5.07%
Utility3.26%
Communication Services2.91%
Real Estate0.46%
Asset Allocation
Asset ClassValue
Cash2.15%
Equity97.85%
Debt0.01%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Reliance Industries Ltd (Energy)
Equity, Since 30 Sep 08 | RELIANCE
9%₹74 Cr354,685
↓ -20,400
Infosys Ltd (Technology)
Equity, Since 31 Oct 10 | INFY
7%₹55 Cr594,000
HDFC Bank Ltd (Financial Services)
Equity, Since 30 Sep 10 | HDFCBANK
6%₹51 Cr456,336
ICICI Bank Ltd (Financial Services)
Equity, Since 30 Apr 18 | ICICIBANK
6%₹49 Cr1,230,051
Tata Consultancy Services Ltd (Technology)
Equity, Since 30 Nov 12 | TCS
4%₹30 Cr131,700
↑ 10,000
Larsen & Toubro Ltd (Industrials)
Equity, Since 28 Feb 18 | LT
3%₹24 Cr259,095
↑ 12,000
Bharti Airtel Ltd (Communication Services)
Equity, Since 31 Oct 17 | BHARTIARTL
3%₹24 Cr464,149
UltraTech Cement Ltd (Basic Materials)
Equity, Since 30 Jun 19 | ULTRACEMCO
3%₹21 Cr52,600
Maruti Suzuki India Ltd (Consumer Cyclical)
Equity, Since 31 Mar 14 | MARUTI
2%₹19 Cr27,698
↓ -1,200
Shree Cement Ltd (Basic Materials)
Equity, Since 31 May 19 | 500387
2%₹17 Cr8,500

3. SBI Contra Fund

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 CAGR/Annualized return of 12.7% since its launch.  Ranked 48 in Contra category.  Return for 2019 was -1% , 2018 was -14.3% and 2017 was 40.2% .

Below is the key information for SBI Contra Fund

SBI Contra Fund
Growth
Launch Date 6 May 05
NAV (25 Sep 20) ₹102.874 ↑ 2.35   (2.34 %)
Net Assets (Cr) ₹1,330 on 31 Aug 20
Category Equity - Contra
AMC SBI Funds Management Private Limited
Rating
Risk Moderately High
Expense Ratio 2.31
Sharpe Ratio 0.26
Information Ratio -0.85
Alpha Ratio 2.19
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.

DateValue
31 Aug 15₹10,000
31 Aug 16₹11,274
31 Aug 17₹12,732
31 Aug 18₹13,506
31 Aug 19₹11,288
31 Aug 20₹12,202

SBI Contra Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹300,000
expected amount after 5 Years is ₹331,978.
Net Profit of ₹31,978
Invest Now

Returns for SBI Contra Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 25 Sep 20

DurationReturns
1 Month -3.4%
3 Month 12.1%
6 Month 42.4%
1 Year 1.1%
3 Year -1.6%
5 Year 3.9%
10 Year
15 Year
Since launch 12.7%
Historical performance (Yearly) on absolute basis
YearReturns
2019 -1%
2018 -14.3%
2017 40.2%
2016 2.4%
2015 -0.1%
2014 47.7%
2013 -1.7%
2012 34.2%
2011 -28.2%
2010 9.6%
Fund Manager information for SBI Contra Fund
NameSinceTenure
Dinesh Balachandran7 May 182.32 Yr.

Data below for SBI Contra Fund as on 31 Aug 20

Equity Sector Allocation
SectorValue
Financial Services19.51%
Health Care15.13%
Basic Materials12.29%
Consumer Cyclical10.86%
Industrials10.56%
Energy8.06%
Technology6.89%
Consumer Defensive3.12%
Utility2.11%
Communication Services2.1%
Real Estate1.89%
Asset Allocation
Asset ClassValue
Cash7.49%
Equity92.51%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Infosys Ltd (Technology)
Equity, Since 28 Feb 19 | INFY
5%₹60 Cr650,000
ICICI Bank Ltd (Financial Services)
Equity, Since 28 Feb 17 | ICICIBANK
4%₹51 Cr1,283,921
ICICI Prudential Life Insurance Co Ltd (Financial Services)
Equity, Since 31 Dec 19 | 540133
4%₹49 Cr1,158,000
HDFC Bank Ltd (Financial Services)
Equity, Since 31 Aug 16 | HDFCBANK
4%₹48 Cr432,642
Sequent Scientific Ltd (Healthcare)
Equity, Since 31 Mar 19 | 512529
3%₹45 Cr3,500,000
Reliance Industries Ltd (Energy)
Equity, Since 31 May 20 | RELIANCE
3%₹41 Cr195,945
Neogen Chemicals Ltd (Basic Materials)
Equity, Since 30 Apr 19 | 542665
3%₹37 Cr539,894
Tata Motors Ltd (Consumer Cyclical)
Equity, Since 30 Apr 20 | TATAMOTORS
3%₹36 Cr2,500,000
Sun Pharmaceuticals Industries Ltd (Healthcare)
Equity, Since 30 Apr 20 | SUNPHARMA
3%₹36 Cr687,500
UltraTech Cement Ltd (Basic Materials)
Equity, Since 29 Feb 20 | ULTRACEMCO
3%₹35 Cr90,000

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.

How to Invest in Contra Funds Online?

  1. Open Free Investment Account for Lifetime at Fincash.com.

  2. Complete your Registration and KYC Process

  3. Upload Documents (PAN, Aadhaar, etc.). And, You are Ready to Invest!

    Get Started

Disclaimer:
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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POST A COMMENT

Rupak Choudhurie, posted on 24 Nov 19 7:44 PM

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

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