Top 3 Best Contra Funds to Invest in 2025
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.
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 25 - 26
(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 ₹146.876
↓ -0.88 ₹4,502 5.8 5.4 -0.1 20.7 23.2 22.1 SBI Contra Fund Growth ₹375.285
↑ 0.48 ₹47,390 1.6 2.5 -2.7 20.7 30.1 18.8 Invesco India Contra Fund Growth ₹132.14
↓ -1.70 ₹19,257 4 3.6 2.1 19.6 22 30.1 Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 8 Aug 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 (₹4,502 Cr). Highest AUM (₹47,390 Cr). Lower mid AUM (₹19,257 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: 23.24% (lower mid). 5Y return: 30.11% (upper mid). 5Y return: 21.95% (bottom quartile). Point 6 3Y return: 20.69% (upper mid). 3Y return: 20.68% (lower mid). 3Y return: 19.61% (bottom quartile). Point 7 1Y return: -0.13% (lower mid). 1Y return: -2.72% (bottom quartile). 1Y return: 2.09% (upper mid). Point 8 Alpha: -1.84 (lower mid). Alpha: -3.52 (bottom quartile). Alpha: 4.06 (upper mid). Point 9 Sharpe: -0.10 (lower mid). Sharpe: -0.20 (bottom quartile). Sharpe: 0.22 (upper mid). Point 10 Information ratio: 1.45 (upper mid). Information ratio: 1.33 (lower mid). Information ratio: 1.10 (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 (08 Aug 25) ₹146.876 ↓ -0.88 (-0.60 %) Net Assets (Cr) ₹4,502 on 30 Jun 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 1.45 Alpha Ratio -1.84 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 Jul 20 ₹10,000 31 Jul 21 ₹15,187 31 Jul 22 ₹16,099 31 Jul 23 ₹19,676 31 Jul 24 ₹29,988 31 Jul 25 ₹29,217 Returns for Kotak India EQ Contra Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 8 Aug 25 Duration Returns 1 Month -3.4% 3 Month 5.8% 6 Month 5.4% 1 Year -0.1% 3 Year 20.7% 5 Year 23.2% 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 6.23 Yr. Data below for Kotak India EQ Contra Fund as on 30 Jun 25
Equity Sector Allocation
Sector Value Financial Services 33.3% Industrials 11.62% Technology 10.08% Consumer Cyclical 9.89% Health Care 7.79% Basic Materials 6.19% Consumer Defensive 5.63% Energy 5.28% Utility 4.88% Communication Services 3.2% Asset Allocation
Asset Class Value Cash 2.12% Equity 97.88% Top Securities Holdings / Portfolio
Name Holding Value Quantity HDFC Bank Ltd (Financial Services)
Equity, Since 30 Sep 10 | HDFCBANK7% ₹314 Cr 1,566,432 ICICI Bank Ltd (Financial Services)
Equity, Since 30 Apr 18 | 5321746% ₹253 Cr 1,748,051
↓ -32,000 Reliance Industries Ltd (Energy)
Equity, Since 30 Sep 08 | RELIANCE4% ₹159 Cr 1,056,648 State Bank of India (Financial Services)
Equity, Since 31 Oct 16 | SBIN3% ₹156 Cr 1,897,000
↓ -80,000 Infosys Ltd (Technology)
Equity, Since 31 Oct 10 | INFY3% ₹151 Cr 943,800
↑ 40,000 Bharti Airtel Ltd (Communication Services)
Equity, Since 31 Oct 17 | BHARTIARTL3% ₹144 Cr 717,149 Tech Mahindra Ltd (Technology)
Equity, Since 30 Jun 23 | 5327553% ₹132 Cr 782,000 Mphasis Ltd (Technology)
Equity, Since 29 Feb 24 | 5262993% ₹125 Cr 439,653
↑ 20,000 Poonawalla Fincorp Ltd (Financial Services)
Equity, Since 31 Oct 24 | POONAWALLA3% ₹119 Cr 2,543,101 Shriram Finance Ltd (Financial Services)
Equity, Since 30 Jun 23 | SHRIRAMFIN2% ₹112 Cr 1,579,305
↑ 77,000 2. SBI Contra Fund
SBI Contra Fund
Growth Launch Date 6 May 05 NAV (07 Aug 25) ₹375.285 ↑ 0.48 (0.13 %) Net Assets (Cr) ₹47,390 on 30 Jun 25 Category Equity - Contra AMC SBI Funds Management Private Limited Rating ☆☆☆ Risk Moderately High Expense Ratio 1.7 Sharpe Ratio -0.2 Information Ratio 1.33 Alpha Ratio -3.52 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.
Date Value 31 Jul 20 ₹10,000 31 Jul 21 ₹18,509 31 Jul 22 ₹21,294 31 Jul 23 ₹27,526 31 Jul 24 ₹40,152 31 Jul 25 ₹38,530 Returns for SBI Contra Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 8 Aug 25 Duration Returns 1 Month -3.8% 3 Month 1.6% 6 Month 2.5% 1 Year -2.7% 3 Year 20.7% 5 Year 30.1% 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 7.24 Yr. Pradeep Kesavan 1 Dec 23 1.67 Yr. Data below for SBI Contra Fund as on 30 Jun 25
Equity Sector Allocation
Sector Value Financial Services 23.04% Energy 9.71% Basic Materials 9.01% Health Care 7.28% Technology 6.71% Consumer Cyclical 6.55% Consumer Defensive 6.17% Utility 4.89% Industrials 3.71% Communication Services 3.1% Real Estate 1.38% Asset Allocation
Asset Class Value Cash 17.92% Equity 81.56% Debt 0.52% Top Securities Holdings / Portfolio
Name Holding Value Quantity HDFC Bank Ltd (Financial Services)
Equity, Since 31 Aug 16 | HDFCBANK9% ₹4,048 Cr 20,224,629 Reliance Industries Ltd (Energy)
Equity, Since 31 Mar 23 | RELIANCE6% ₹2,959 Cr 19,717,567 ITC Ltd (Consumer Defensive)
Equity, Since 31 Jul 20 | ITC3% ₹1,614 Cr 38,766,741 Kotak Mahindra Bank Ltd (Financial Services)
Equity, Since 31 Mar 24 | KOTAKBANK3% ₹1,386 Cr 6,405,768 Punjab National Bank (Financial Services)
Equity, Since 30 Sep 22 | 5324612% ₹1,110 Cr 100,456,586
↑ 16,045,412 Biocon Ltd (Healthcare)
Equity, Since 30 Jun 21 | BIOCON2% ₹1,020 Cr 28,687,453
↑ 9,166,679 GAIL (India) Ltd (Utilities)
Equity, Since 28 Feb 21 | 5321552% ₹992 Cr 51,993,788 Torrent Power Ltd (Utilities)
Equity, Since 31 Oct 21 | 5327792% ₹951 Cr 6,482,410
↑ 319,110 Tata Steel Ltd (Basic Materials)
Equity, Since 31 Jul 22 | TATASTEEL2% ₹847 Cr 52,995,525 Indus Towers Ltd Ordinary Shares (Communication Services)
Equity, Since 30 Jun 24 | 5348162% ₹837 Cr 19,886,692 3. Invesco India Contra Fund
Invesco India Contra Fund
Growth Launch Date 11 Apr 07 NAV (08 Aug 25) ₹132.14 ↓ -1.70 (-1.27 %) Net Assets (Cr) ₹19,257 on 30 Jun 25 Category Equity - Contra AMC Invesco Asset Management (India) Private Ltd Rating ☆☆☆☆ Risk Moderately High Expense Ratio 1.7 Sharpe Ratio 0.22 Information Ratio 1.1 Alpha Ratio 4.06 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 Jul 20 ₹10,000 31 Jul 21 ₹14,938 31 Jul 22 ₹15,669 31 Jul 23 ₹18,420 31 Jul 24 ₹27,636 31 Jul 25 ₹28,108 Returns for Invesco India Contra Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 8 Aug 25 Duration Returns 1 Month -3.6% 3 Month 4% 6 Month 3.6% 1 Year 2.1% 3 Year 19.6% 5 Year 22% 10 Year 15 Year Since launch 15.1% 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 1.67 Yr. Taher Badshah 13 Jan 17 8.55 Yr. Data below for Invesco India Contra Fund as on 30 Jun 25
Equity Sector Allocation
Sector Value Financial Services 32.97% Consumer Cyclical 15.33% Health Care 13.75% Technology 10.38% Industrials 8.64% Basic Materials 4.46% Consumer Defensive 3.75% Communication Services 2.21% Utility 2.19% Real Estate 1.56% Energy 1.45% Asset Allocation
Asset Class Value Cash 1.13% Equity 98.87% Top Securities Holdings / Portfolio
Name Holding Value Quantity HDFC Bank Ltd (Financial Services)
Equity, Since 30 Apr 14 | HDFCBANK8% ₹1,562 Cr 7,802,903 ICICI Bank Ltd (Financial Services)
Equity, Since 31 May 17 | 5321747% ₹1,428 Cr 9,874,886 Infosys Ltd (Technology)
Equity, Since 30 Sep 13 | INFY5% ₹1,044 Cr 6,515,879 Mahindra & Mahindra Ltd (Consumer Cyclical)
Equity, Since 31 Oct 21 | M&M4% ₹682 Cr 2,141,610 Axis Bank Ltd (Financial Services)
Equity, Since 30 Jun 20 | 5322153% ₹624 Cr 5,201,150 Eternal Ltd (Consumer Cyclical)
Equity, Since 30 Jun 23 | 5433203% ₹618 Cr 23,382,312 Larsen & Toubro Ltd (Industrials)
Equity, Since 30 Sep 20 | LT3% ₹563 Cr 1,534,743 Apollo Hospitals Enterprise Ltd (Healthcare)
Equity, Since 31 Mar 24 | APOLLOHOSP3% ₹516 Cr 711,861 Coforge Ltd (Technology)
Equity, Since 31 Mar 22 | COFORGE2% ₹454 Cr 2,357,575 NTPC Ltd (Utilities)
Equity, Since 31 Mar 21 | 5325552% ₹423 Cr 12,620,437
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?
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