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Top 3 Best Contra Funds to Invest in 2024- Fincash

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Top 3 Best Contra Funds to Invest in 2024

Updated on April 8, 2024 , 35276 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 24 - 25

FundNAVNet Assets (Cr)3 MO (%)6 MO (%)1 YR (%)3 YR (%)5 YR (%)2023 (%)
SBI Contra Fund Growth ₹349.336
↑ 1.76
₹25,3259.425.351.93125.938.2
Kotak India EQ Contra Fund Growth ₹132.285
↑ 0.87
₹2,5679.928.65223.420.435
Invesco India Contra Fund Growth ₹113.44
↑ 0.61
₹13,824923.246.721.318.928.8
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 10 Apr 24
*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 17.5% since its launch.  Ranked 48 in Contra category.  Return for 2023 was 38.2% , 2022 was 12.8% and 2021 was 49.9% .

Below is the key information for SBI Contra Fund

SBI Contra Fund
Growth
Launch Date 6 May 05
NAV (10 Apr 24) ₹349.336 ↑ 1.76   (0.51 %)
Net Assets (Cr) ₹25,325 on 29 Feb 24
Category Equity - Contra
AMC SBI Funds Management Private Limited
Rating
Risk Moderately High
Expense Ratio 1.92
Sharpe Ratio 3.09
Information Ratio 1.86
Alpha Ratio 6.7
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 Mar 19₹10,000
31 Mar 20₹6,811
31 Mar 21₹13,833
31 Mar 22₹18,032
31 Mar 23₹20,427
31 Mar 24₹30,215

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 ₹570,326.
Net Profit of ₹270,326
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 10 Apr 24

DurationReturns
1 Month 2.7%
3 Month 9.4%
6 Month 25.3%
1 Year 51.9%
3 Year 31%
5 Year 25.9%
10 Year
15 Year
Since launch 17.5%
Historical performance (Yearly) on absolute basis
YearReturns
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%
2014 47.7%
Fund Manager information for SBI Contra Fund
NameSinceTenure
Dinesh Balachandran7 May 185.9 Yr.
Mohit Jain5 May 185.91 Yr.

Data below for SBI Contra Fund as on 29 Feb 24

Equity Sector Allocation
SectorValue
Financial Services19.01%
Basic Materials10.73%
Industrials10.27%
Consumer Cyclical9.89%
Utility7.76%
Technology7.74%
Energy6.91%
Health Care6.37%
Consumer Defensive2.1%
Communication Services1.55%
Real Estate0.74%
Asset Allocation
Asset ClassValue
Cash15.93%
Equity83.07%
Debt1%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
State Bank of India (Financial Services)
Equity, Since 31 Dec 10 | SBIN
3%₹767 Cr10,254,269
GAIL (India) Ltd (Utilities)
Equity, Since 28 Feb 21 | 532155
3%₹750 Cr41,173,788
HDFC Bank Ltd (Financial Services)
Equity, Since 31 Aug 16 | HDFCBANK
3%₹736 Cr5,247,072
Cognizant Technology Solutions Corp Class A (Technology)
Equity, Since 28 Feb 23 | CTSH
3%₹649 Cr990,530
ICICI Bank Ltd (Financial Services)
Equity, Since 28 Feb 17 | ICICIBANK
2%₹556 Cr5,281,550
Axis Bank Ltd (Financial Services)
Equity, Since 31 May 19 | 532215
2%₹527 Cr4,904,255
↑ 800,000
Whirlpool of India Ltd (Consumer Cyclical)
Equity, Since 29 Feb 24 | 500238
2%₹508 Cr4,040,000
↑ 4,040,000
91 DTB 02052024
Sovereign Bonds | -
2%₹494 Cr50,000,000
↑ 10,000,000
Petronet LNG Ltd (Energy)
Equity, Since 31 May 23 | 532522
2%₹478 Cr17,474,315
Tata Steel Ltd (Basic Materials)
Equity, Since 31 Jul 22 | TATASTEEL
2%₹470 Cr33,345,525

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 14.8% since its launch.  Ranked 30 in Contra category.  Return for 2023 was 35% , 2022 was 7.4% and 2021 was 30.2% .

Below is the key information for Kotak India EQ Contra Fund

Kotak India EQ Contra Fund
Growth
Launch Date 27 Jul 05
NAV (10 Apr 24) ₹132.285 ↑ 0.87   (0.67 %)
Net Assets (Cr) ₹2,567 on 29 Feb 24
Category Equity - Contra
AMC Kotak Mahindra Asset Management Co Ltd
Rating
Risk Moderately High
Expense Ratio 2.03
Sharpe Ratio 2.88
Information Ratio 0.85
Alpha Ratio 4.91
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.

DateValue
31 Mar 19₹10,000
31 Mar 20₹7,480
31 Mar 21₹13,244
31 Mar 22₹15,701
31 Mar 23₹16,362
31 Mar 24₹24,280

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 ₹505,644.
Net Profit of ₹205,644
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 10 Apr 24

DurationReturns
1 Month 2.1%
3 Month 9.9%
6 Month 28.6%
1 Year 52%
3 Year 23.4%
5 Year 20.4%
10 Year
15 Year
Since launch 14.8%
Historical performance (Yearly) on absolute basis
YearReturns
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%
2014 39.3%
Fund Manager information for Kotak India EQ Contra Fund
NameSinceTenure
Shibani Kurian9 May 194.9 Yr.

Data below for Kotak India EQ Contra Fund as on 29 Feb 24

Equity Sector Allocation
SectorValue
Financial Services26.31%
Industrials11.95%
Consumer Cyclical11.32%
Health Care9.35%
Technology8.99%
Energy8%
Consumer Defensive5.72%
Utility5.28%
Basic Materials4.99%
Communication Services3.55%
Real Estate1.33%
Asset Allocation
Asset ClassValue
Cash3.21%
Equity96.79%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
HDFC Bank Ltd (Financial Services)
Equity, Since 30 Sep 10 | HDFCBANK
5%₹116 Cr829,432
↑ 45,000
ICICI Bank Ltd (Financial Services)
Equity, Since 30 Apr 18 | ICICIBANK
4%₹111 Cr1,056,051
↑ 571,000
Reliance Industries Ltd (Energy)
Equity, Since 30 Sep 08 | RELIANCE
4%₹102 Cr347,824
Infosys Ltd (Technology)
Equity, Since 31 Oct 10 | INFY
4%₹98 Cr588,300
↑ 40,000
NTPC Ltd (Utilities)
Equity, Since 30 Nov 20 | 532555
3%₹76 Cr2,263,000
Bank of Baroda (Financial Services)
Equity, Since 31 Jul 22 | 532134
3%₹66 Cr2,489,998
Hero MotoCorp Ltd (Consumer Cyclical)
Equity, Since 31 Oct 22 | HEROMOTOCO
2%₹64 Cr144,700
Sun Pharmaceuticals Industries Ltd (Healthcare)
Equity, Since 28 Feb 21 | SUNPHARMA
2%₹62 Cr394,000
Power Finance Corp Ltd (Financial Services)
Equity, Since 30 Nov 22 | 532810
2%₹61 Cr1,512,500
GAIL (India) Ltd (Utilities)
Equity, Since 28 Feb 23 | 532155
2%₹60 Cr3,265,000

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 2023 was 28.8% , 2022 was 3.8% and 2021 was 29.6% .

Below is the key information for Invesco India Contra Fund

Invesco India Contra Fund
Growth
Launch Date 11 Apr 07
NAV (10 Apr 24) ₹113.44 ↑ 0.61   (0.54 %)
Net Assets (Cr) ₹13,824 on 29 Feb 24
Category Equity - Contra
AMC Invesco Asset Management (India) Private Ltd
Rating
Risk Moderately High
Expense Ratio 1.8
Sharpe Ratio 2.62
Information Ratio 0.04
Alpha Ratio 1.91
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

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 ₹481,656.
Net Profit of ₹181,656
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 10 Apr 24

DurationReturns
1 Month 3.2%
3 Month 9%
6 Month 23.2%
1 Year 46.7%
3 Year 21.3%
5 Year 18.9%
10 Year
15 Year
Since launch 15.4%
Historical performance (Yearly) on absolute basis
YearReturns
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%
2014 63%
Fund Manager information for Invesco India Contra Fund
NameSinceTenure
Amit Ganatra1 Dec 230.33 Yr.
Taher Badshah13 Jan 177.22 Yr.

Data below for Invesco India Contra Fund as on 29 Feb 24

Equity Sector Allocation
SectorValue
Financial Services29.53%
Industrials14.27%
Consumer Cyclical13.3%
Technology12.07%
Health Care8.78%
Utility8.63%
Basic Materials3.9%
Energy3.08%
Real Estate2.17%
Consumer Defensive1.47%
Communication Services1.37%
Asset Allocation
Asset ClassValue
Cash1.43%
Equity98.57%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
ICICI Bank Ltd (Financial Services)
Equity, Since 31 May 17 | ICICIBANK
6%₹840 Cr7,986,079
HDFC Bank Ltd (Financial Services)
Equity, Since 30 Apr 14 | HDFCBANK
5%₹718 Cr5,114,242
Infosys Ltd (Technology)
Equity, Since 30 Sep 13 | INFY
5%₹704 Cr4,205,397
NTPC Ltd (Utilities)
Equity, Since 31 Mar 21 | 532555
5%₹696 Cr20,752,875
↓ -1,135,056
Larsen & Toubro Ltd (Industrials)
Equity, Since 30 Sep 20 | LT
3%₹451 Cr1,295,765
State Bank of India (Financial Services)
Equity, Since 28 Feb 21 | SBIN
3%₹395 Cr5,275,516
Bharat Electronics Ltd (Industrials)
Equity, Since 31 Dec 18 | BEL
3%₹369 Cr17,995,746
HCL Technologies Ltd (Technology)
Equity, Since 30 Apr 19 | HCLTECH
3%₹368 Cr2,212,276
Sun Pharmaceuticals Industries Ltd (Healthcare)
Equity, Since 30 Nov 16 | SUNPHARMA
3%₹346 Cr2,191,359
Axis Bank Ltd (Financial Services)
Equity, Since 30 Jun 20 | 532215
2%₹337 Cr3,136,159

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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