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Top 3 Best Contra Funds to Invest in 2020
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.
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
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 (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 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 Fund NAV Net Assets (Cr) 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 5 YR (%) 2019 (%) Invesco India Contra Fund Growth ₹48.16
↑ 1.12 ₹5,019 7.4 35.4 3.7 5.6 9.9 5.9 Kotak India EQ Contra Fund Growth ₹51.225
↑ 1.24 ₹818 8.3 35.2 -2.3 4.4 8.6 10 SBI Contra Fund Growth ₹102.874
↑ 2.35 ₹1,330 12.1 42.4 1.1 -1.6 3.9 -1 Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 25 Sep 20 Assets >= 100 Crore & Sorted on 3 year CAGR Returns.
1. Invesco India Contra Fund
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% . 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.
Date Value 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 Returns for Invesco India Contra Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 25 Sep 20 Duration Returns 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
Year Returns 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
Name Since Tenure Taher Badshah 10 Jan 17 3.64 Yr. Dhimant Kothari 19 May 20 0.29 Yr. Data below for Invesco India Contra Fund as on 31 Aug 20
Equity Sector Allocation
Sector Value Financial Services 27.45% Technology 13.3% Energy 13.26% Consumer Cyclical 10.03% Health Care 8.5% Industrials 6.3% Utility 5.44% Communication Services 4.83% Basic Materials 3.96% Consumer Defensive 2.94% Real Estate 1.93% Asset Allocation
Asset Class Value Cash 2.05% Equity 97.95% Top Securities Holdings / Portfolio
Name Holding Value Quantity Reliance Industries Ltd (Energy)
Equity, Since 31 Aug 19 | RELIANCE10% ₹500 Cr 2,403,732 HDFC Bank Ltd (Financial Services)
Equity, Since 30 Apr 14 | HDFCBANK9% ₹428 Cr 3,832,632
↓ -71,355 ICICI Bank Ltd (Financial Services)
Equity, Since 31 May 17 | ICICIBANK7% ₹360 Cr 9,123,924 Infosys Ltd (Technology)
Equity, Since 30 Sep 13 | INFY7% ₹331 Cr 3,560,113
↓ -228,657 Bharti Airtel Ltd (Communication Services)
Equity, Since 31 Oct 18 | BHARTIARTL5% ₹243 Cr 4,728,740
↑ 93,490 Axis Bank Ltd (Financial Services)
Equity, Since 30 Jun 20 | 5322155% ₹226 Cr 4,548,524 Sun Pharmaceuticals Industries Ltd (Healthcare)
Equity, Since 30 Nov 16 | SUNPHARMA3% ₹160 Cr 3,081,221 HCL Technologies Ltd (Technology)
Equity, Since 30 Apr 19 | HCLTECH3% ₹126 Cr 1,820,892 Apollo Hospitals Enterprise Ltd (Healthcare)
Equity, Since 30 Sep 17 | APOLLOHOSP2% ₹120 Cr 731,434 United Spirits Ltd (Consumer Defensive)
Equity, Since 30 Jun 17 | 5324322% ₹114 Cr 2,088,170 2. Kotak India EQ Contra Fund
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% . 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.
Date Value 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 Returns for Kotak India EQ Contra Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 25 Sep 20 Duration Returns 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
Year Returns 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
Name Since Tenure Shibani Kurian 9 May 19 1.32 Yr. Data below for Kotak India EQ Contra Fund as on 31 Aug 20
Equity Sector Allocation
Sector Value Financial Services 26.37% Technology 13.85% Energy 11.89% Consumer Cyclical 11.37% Basic Materials 8.58% Industrials 8.51% Health Care 5.17% Consumer Defensive 5.07% Utility 3.26% Communication Services 2.91% Real Estate 0.46% Asset Allocation
Asset Class Value Cash 2.15% Equity 97.85% Debt 0.01% Top Securities Holdings / Portfolio
Name Holding Value Quantity Reliance Industries Ltd (Energy)
Equity, Since 30 Sep 08 | RELIANCE9% ₹74 Cr 354,685
↓ -20,400 Infosys Ltd (Technology)
Equity, Since 31 Oct 10 | INFY7% ₹55 Cr 594,000 HDFC Bank Ltd (Financial Services)
Equity, Since 30 Sep 10 | HDFCBANK6% ₹51 Cr 456,336 ICICI Bank Ltd (Financial Services)
Equity, Since 30 Apr 18 | ICICIBANK6% ₹49 Cr 1,230,051 Tata Consultancy Services Ltd (Technology)
Equity, Since 30 Nov 12 | TCS4% ₹30 Cr 131,700
↑ 10,000 Larsen & Toubro Ltd (Industrials)
Equity, Since 28 Feb 18 | LT3% ₹24 Cr 259,095
↑ 12,000 Bharti Airtel Ltd (Communication Services)
Equity, Since 31 Oct 17 | BHARTIARTL3% ₹24 Cr 464,149 UltraTech Cement Ltd (Basic Materials)
Equity, Since 30 Jun 19 | ULTRACEMCO3% ₹21 Cr 52,600 Maruti Suzuki India Ltd (Consumer Cyclical)
Equity, Since 31 Mar 14 | MARUTI2% ₹19 Cr 27,698
↓ -1,200 Shree Cement Ltd (Basic Materials)
Equity, Since 31 May 19 | 5003872% ₹17 Cr 8,500 3. SBI Contra Fund
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% . 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.
Date Value 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 Returns for SBI Contra Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 25 Sep 20 Duration Returns 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
Year Returns 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
Name Since Tenure Dinesh Balachandran 7 May 18 2.32 Yr. Data below for SBI Contra Fund as on 31 Aug 20
Equity Sector Allocation
Sector Value Financial Services 19.51% Health Care 15.13% Basic Materials 12.29% Consumer Cyclical 10.86% Industrials 10.56% Energy 8.06% Technology 6.89% Consumer Defensive 3.12% Utility 2.11% Communication Services 2.1% Real Estate 1.89% Asset Allocation
Asset Class Value Cash 7.49% Equity 92.51% Top Securities Holdings / Portfolio
Name Holding Value Quantity Infosys Ltd (Technology)
Equity, Since 28 Feb 19 | INFY5% ₹60 Cr 650,000 ICICI Bank Ltd (Financial Services)
Equity, Since 28 Feb 17 | ICICIBANK4% ₹51 Cr 1,283,921 ICICI Prudential Life Insurance Co Ltd (Financial Services)
Equity, Since 31 Dec 19 | 5401334% ₹49 Cr 1,158,000 HDFC Bank Ltd (Financial Services)
Equity, Since 31 Aug 16 | HDFCBANK4% ₹48 Cr 432,642 Sequent Scientific Ltd (Healthcare)
Equity, Since 31 Mar 19 | 5125293% ₹45 Cr 3,500,000 Reliance Industries Ltd (Energy)
Equity, Since 31 May 20 | RELIANCE3% ₹41 Cr 195,945 Neogen Chemicals Ltd (Basic Materials)
Equity, Since 30 Apr 19 | 5426653% ₹37 Cr 539,894 Tata Motors Ltd (Consumer Cyclical)
Equity, Since 30 Apr 20 | TATAMOTORS3% ₹36 Cr 2,500,000 Sun Pharmaceuticals Industries Ltd (Healthcare)
Equity, Since 30 Apr 20 | SUNPHARMA3% ₹36 Cr 687,500 UltraTech Cement Ltd (Basic Materials)
Equity, Since 29 Feb 20 | ULTRACEMCO3% ₹35 Cr 90,000
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?
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