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Top 3 Best Contra Funds to Invest in 2021- Fincash

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Top 3 Best Contra Funds to Invest in 2021

Updated on October 13, 2021 , 18999 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. 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.

best-contra-funds

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 21 - 22

FundNAVNet Assets (Cr)3 MO (%)6 MO (%)1 YR (%)3 YR (%)5 YR (%)2020 (%)
SBI Contra Fund Growth ₹203.902
↑ 1.09
₹2,823133590.226.216.230.6
Kotak India EQ Contra Fund Growth ₹86.904
↑ 0.79
₹1,13313.12758.721.917.715.2
Invesco India Contra Fund Growth ₹80.3
↑ 0.42
₹8,1991330.158.421.717.821.2
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 14 Oct 21
*List of funds based on Assets >= 100 Crore & Sorted on 3 year CAGR Returns.

1. 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 16.6% since its launch.  Ranked 48 in Contra category.  Return for 2020 was 30.6% , 2019 was -1% and 2018 was -14.3% .

Below is the key information for SBI Contra Fund

SBI Contra Fund
Growth
Launch Date 6 May 05
NAV (14 Oct 21) ₹203.902 ↑ 1.09   (0.54 %)
Net Assets (Cr) ₹2,823 on 31 Aug 21
Category Equity - Contra
AMC SBI Funds Management Private Limited
Rating
Risk Moderately High
Expense Ratio 2.29
Sharpe Ratio 3.4
Information Ratio 0.25
Alpha Ratio 14.52
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
30 Sep 16₹10,000
30 Sep 17₹11,341
30 Sep 18₹10,790
30 Sep 19₹10,687
30 Sep 20₹10,990
30 Sep 21₹20,448

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 ₹458,689.
Net Profit of ₹158,689
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 14 Oct 21

DurationReturns
1 Month 6.4%
3 Month 13%
6 Month 35%
1 Year 90.2%
3 Year 26.2%
5 Year 16.2%
10 Year
15 Year
Since launch 16.6%
Historical performance (Yearly) on absolute basis
YearReturns
2020 30.6%
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%
Fund Manager information for SBI Contra Fund
NameSinceTenure
Dinesh Balachandran7 May 183.32 Yr.

Data below for SBI Contra Fund as on 31 Aug 21

Equity Sector Allocation
SectorValue
Industrials20.32%
Financial Services18.61%
Consumer Cyclical10.09%
Basic Materials8.48%
Technology7.38%
Health Care7.18%
Communication Services5.5%
Utility5%
Real Estate4.92%
Energy4.61%
Consumer Defensive2.01%
Asset Allocation
Asset ClassValue
Cash5.89%
Equity94.11%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
ICICI Bank Ltd (Financial Services)
Equity, Since 28 Feb 17 | ICICIBANK
4%₹104 Cr1,443,921
Tube Investments of India Ltd Ordinary Shares (Consumer Cyclical)
Equity, Since 31 Jan 21 | 540762
4%₹104 Cr760,201
HCL Technologies Ltd (Technology)
Equity, Since 31 Aug 13 | HCLTECH
3%₹97 Cr820,000
↑ 370,000
Carborundum Universal Ltd (Industrials)
Equity, Since 31 May 19 | 513375
3%₹95 Cr1,149,083
Sun Pharmaceuticals Industries Ltd (Healthcare)
Equity, Since 30 Apr 20 | SUNPHARMA
3%₹82 Cr1,037,500
Infosys Ltd (Technology)
Equity, Since 28 Feb 19 | INFY
3%₹78 Cr455,000
Hindustan Aeronautics Ltd Ordinary Shares (Industrials)
Equity, Since 30 Apr 21 | 541154
3%₹76 Cr550,000
Axis Bank Ltd (Financial Services)
Equity, Since 31 May 19 | 532215
3%₹74 Cr940,000
Bharti Airtel Ltd (Communication Services)
Equity, Since 31 Mar 17 | BHARTIARTL
2%₹66 Cr993,581
↑ 250,000
MTAR Technologies Ltd (Industrials)
Equity, Since 28 Feb 21 | 543270
2%₹66 Cr530,264

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 14.3% since its launch.  Ranked 30 in Contra category.  Return for 2020 was 15.2% , 2019 was 10% and 2018 was 2.6% .

Below is the key information for Kotak India EQ Contra Fund

Kotak India EQ Contra Fund
Growth
Launch Date 27 Jul 05
NAV (14 Oct 21) ₹86.904 ↑ 0.79   (0.92 %)
Net Assets (Cr) ₹1,133 on 31 Aug 21
Category Equity - Contra
AMC Kotak Mahindra Asset Management Co Ltd
Rating
Risk Moderately High
Expense Ratio 2.2
Sharpe Ratio 3.2
Information Ratio 0.05
Alpha Ratio 10.6
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
30 Sep 16₹10,000
30 Sep 17₹11,842
30 Sep 18₹13,237
30 Sep 19₹13,918
30 Sep 20₹13,821
30 Sep 21₹22,035

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 ₹470,047.
Net Profit of ₹170,047
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 14 Oct 21

DurationReturns
1 Month 5.4%
3 Month 13.1%
6 Month 27%
1 Year 58.7%
3 Year 21.9%
5 Year 17.7%
10 Year
15 Year
Since launch 14.3%
Historical performance (Yearly) on absolute basis
YearReturns
2020 15.2%
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%
Fund Manager information for Kotak India EQ Contra Fund
NameSinceTenure
Shibani Kurian9 May 192.32 Yr.

Data below for Kotak India EQ Contra Fund as on 31 Aug 21

Equity Sector Allocation
SectorValue
Financial Services29.67%
Technology13.86%
Basic Materials11.45%
Industrials9.68%
Energy8.04%
Consumer Cyclical6.76%
Health Care5.74%
Consumer Defensive4.33%
Utility4.21%
Communication Services3.7%
Real Estate1.08%
Asset Allocation
Asset ClassValue
Cash1.09%
Equity98.91%
Debt0%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
ICICI Bank Ltd (Financial Services)
Equity, Since 30 Apr 18 | ICICIBANK
8%₹92 Cr1,276,051
Infosys Ltd (Technology)
Equity, Since 31 Oct 10 | INFY
7%₹80 Cr468,500
↓ -26,000
HDFC Bank Ltd (Financial Services)
Equity, Since 30 Sep 10 | HDFCBANK
7%₹76 Cr479,636
↑ 72,700
Reliance Industries Ltd (Energy)
Equity, Since 30 Sep 08 | RELIANCE
6%₹65 Cr289,785
State Bank of India (Financial Services)
Equity, Since 31 Oct 16 | SBIN
4%₹46 Cr1,091,000
UltraTech Cement Ltd (Basic Materials)
Equity, Since 30 Jun 19 | ULTRACEMCO
4%₹44 Cr56,000
Tata Consultancy Services Ltd (Technology)
Equity, Since 30 Nov 12 | TCS
4%₹43 Cr114,441
↑ 17,300
Larsen & Toubro Ltd (Industrials)
Equity, Since 28 Feb 18 | LT
4%₹41 Cr245,895
Axis Bank Ltd (Financial Services)
Equity, Since 30 Nov 18 | 532215
3%₹35 Cr450,000
Bharti Airtel Ltd (Communication Services)
Equity, Since 31 Oct 17 | BHARTIARTL
3%₹33 Cr502,149

3. 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 15.4% since its launch.  Ranked 11 in Contra category.  Return for 2020 was 21.2% , 2019 was 5.9% and 2018 was -3.3% .

Below is the key information for Invesco India Contra Fund

Invesco India Contra Fund
Growth
Launch Date 11 Apr 07
NAV (14 Oct 21) ₹80.3 ↑ 0.42   (0.53 %)
Net Assets (Cr) ₹8,199 on 31 Aug 21
Category Equity - Contra
AMC Invesco Asset Management (India) Private Ltd
Rating
Risk Moderately High
Expense Ratio 1.62
Sharpe Ratio 2.74
Information Ratio -0.2
Alpha Ratio -2.37
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
30 Sep 16₹10,000
30 Sep 17₹11,799
30 Sep 18₹13,228
30 Sep 19₹13,438
30 Sep 20₹14,039
30 Sep 21₹22,018

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 ₹470,047.
Net Profit of ₹170,047
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 14 Oct 21

DurationReturns
1 Month 6.1%
3 Month 13%
6 Month 30.1%
1 Year 58.4%
3 Year 21.7%
5 Year 17.8%
10 Year
15 Year
Since launch 15.4%
Historical performance (Yearly) on absolute basis
YearReturns
2020 21.2%
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%
Fund Manager information for Invesco India Contra Fund
NameSinceTenure
Taher Badshah10 Jan 174.64 Yr.
Dhimant Kothari19 May 201.29 Yr.

Data below for Invesco India Contra Fund as on 31 Aug 21

Equity Sector Allocation
SectorValue
Financial Services32.14%
Industrials15.22%
Technology13.66%
Basic Materials8.85%
Health Care7.42%
Energy6.5%
Consumer Cyclical5.84%
Utility5.28%
Communication Services2.42%
Real Estate1.42%
Asset Allocation
Asset ClassValue
Cash1.27%
Equity98.73%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
ICICI Bank Ltd (Financial Services)
Equity, Since 31 May 17 | ICICIBANK
8%₹672 Cr9,342,377
HDFC Bank Ltd (Financial Services)
Equity, Since 30 Apr 14 | HDFCBANK
7%₹591 Cr3,739,991
↑ 160,164
Infosys Ltd (Technology)
Equity, Since 30 Sep 13 | INFY
6%₹529 Cr3,099,984
Axis Bank Ltd (Financial Services)
Equity, Since 30 Jun 20 | 532215
4%₹359 Cr4,560,268
Reliance Industries Ltd (Energy)
Equity, Since 31 Aug 19 | RELIANCE
4%₹342 Cr1,512,946
State Bank of India (Financial Services)
Equity, Since 28 Feb 21 | SBIN
4%₹331 Cr7,767,195
↑ 562,326
Sun Pharmaceuticals Industries Ltd (Healthcare)
Equity, Since 30 Nov 16 | SUNPHARMA
4%₹318 Cr4,010,197
↑ 105,536
UltraTech Cement Ltd (Basic Materials)
Equity, Since 30 Sep 19 | ULTRACEMCO
4%₹309 Cr394,237
Larsen & Toubro Ltd (Industrials)
Equity, Since 30 Sep 20 | LT
4%₹292 Cr1,746,304
↑ 48,113
Tech Mahindra Ltd (Technology)
Equity, Since 30 Sep 18 | 532755
3%₹250 Cr1,727,979

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?

  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!

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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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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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