+91-22-48913909Top 3 Best Contra Funds to Invest in 2026
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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Fund Selection Methodology used to find 3 funds
Best Performing Contra Funds to Invest in FY 26 - 27
Fund NAV Net Assets (Cr) 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 5 YR (%) 2024 (%) Kotak India EQ Contra Fund Growth ₹156.591
↓ -0.22 ₹5,331 3.2 1.3 6 16.3 14.8 7.4 Invesco India Contra Fund Growth ₹137.56
↑ 0.06 ₹19,996 4.7 2.2 2.8 15.7 13.5 3.1 SBI Contra Fund Growth ₹381.955
↓ -0.37 ₹47,362 1.2 -2.7 1.9 12.5 15.8 6.1 Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 7 Aug 26 Research Highlights & Commentary of 3 Funds showcased
Commentary Kotak India EQ Contra Fund Invesco India Contra Fund SBI Contra Fund Point 1 Bottom quartile AUM (₹5,331 Cr). Lower mid AUM (₹19,996 Cr). Highest AUM (₹47,362 Cr). Point 2 Oldest track record among peers (21 yrs). Established history (19+ yrs). Established history (21+ yrs). Point 3 Rating: 3★ (lower mid). Top rated. Rating: 3★ (bottom quartile). Point 4 Risk profile: Moderately High. Risk profile: Moderately High. Risk profile: Moderately High. Point 5 5Y return: 14.76% (lower mid). 5Y return: 13.54% (bottom quartile). 5Y return: 15.79% (upper mid). Point 6 3Y return: 16.28% (upper mid). 3Y return: 15.66% (lower mid). 3Y return: 12.53% (bottom quartile). Point 7 1Y return: 5.98% (upper mid). 1Y return: 2.78% (lower mid). 1Y return: 1.91% (bottom quartile). Point 8 Alpha: 1.09 (upper mid). Alpha: -2.01 (bottom quartile). Alpha: -1.15 (lower mid). Point 9 Sharpe: -0.25 (upper mid). Sharpe: -0.45 (lower mid). Sharpe: -0.57 (bottom quartile). Point 10 Information ratio: 1.08 (upper mid). Information ratio: 0.80 (lower mid). Information ratio: 0.68 (bottom quartile). Kotak India EQ Contra Fund
Invesco India Contra Fund
SBI Contra Fund
*List of funds based 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. 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 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 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 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 (07 Aug 26) ₹156.591 ↓ -0.22 (-0.14 %) Net Assets (Cr) ₹5,331 on 30 Jun 26 Category Equity - Contra AMC Kotak Mahindra Asset Management Co Ltd Rating ☆☆☆ Risk Moderately High Expense Ratio 1.89 Sharpe Ratio -0.26 Information Ratio 1.08 Alpha Ratio 1.09 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 21 ₹10,000 31 Jul 22 ₹10,601 31 Jul 23 ₹12,956 31 Jul 24 ₹19,746 31 Jul 25 ₹19,238 31 Jul 26 ₹19,926 Returns for Kotak India EQ Contra Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 7 Aug 26 Duration Returns 1 Month 1.4% 3 Month 3.2% 6 Month 1.3% 1 Year 6% 3 Year 16.3% 5 Year 14.8% 10 Year 15 Year Since launch 14% Historical performance (Yearly) on absolute basis
Year Returns 2024 7.4% 2023 22.1% 2022 35% 2021 7.4% 2020 30.2% 2019 15.2% 2018 10% 2017 2.6% 2016 35.4% 2015 7.1% Fund Manager information for Kotak India EQ Contra Fund
Name Since Tenure Shibani Kurian 9 May 19 7.24 Yr. Data below for Kotak India EQ Contra Fund as on 30 Jun 26
Equity Sector Allocation
Sector Value Financial Services 34.29% Industrials 12.26% Health Care 12.21% Consumer Cyclical 9.68% Basic Materials 7.37% Technology 7.22% Communication Services 4.23% Consumer Defensive 4.07% Energy 4.03% Utility 2.65% Asset Allocation
Asset Class Value Cash 2% Equity 98% Top Securities Holdings / Portfolio
Name Holding Value Quantity ICICI Bank Ltd (Financial Services)
Equity, Since 30 Apr 18 | ICICIBANK6% ₹295 Cr 2,148,051
↑ 180,000 HDFC Bank Ltd (Financial Services)
Equity, Since 30 Sep 10 | HDFCBANK5% ₹283 Cr 3,546,864 State Bank of India (Financial Services)
Equity, Since 31 Oct 16 | SBIN3% ₹180 Cr 1,752,000 Reliance Industries Ltd (Energy)
Equity, Since 30 Sep 08 | RELIANCE3% ₹153 Cr 1,181,648 Shriram Finance Ltd (Financial Services)
Equity, Since 30 Jun 23 | SHRIRAMFIN3% ₹150 Cr 1,437,305 Larsen & Toubro Ltd (Industrials)
Equity, Since 28 Feb 18 | LT3% ₹143 Cr 345,547 NTPC Ltd (Utilities)
Equity, Since 30 Nov 20 | 5325553% ₹141 Cr 3,955,000 Bharti Airtel Ltd (Communication Services)
Equity, Since 31 Oct 17 | BHARTIARTL2% ₹133 Cr 717,149 Fortis Healthcare Ltd (Healthcare)
Equity, Since 31 May 23 | 5328432% ₹128 Cr 1,335,600 Park Medi World Ltd (Healthcare)
Equity, Since 31 Dec 25 | PARKHOSPS2% ₹127 Cr 4,247,135 2. Invesco India Contra Fund
Invesco India Contra Fund
Growth Launch Date 11 Apr 07 NAV (07 Aug 26) ₹137.56 ↑ 0.06 (0.04 %) Net Assets (Cr) ₹19,996 on 30 Jun 26 Category Equity - Contra AMC Invesco Asset Management (India) Private Ltd Rating ☆☆☆☆ Risk Moderately High Expense Ratio 1.65 Sharpe Ratio -0.45 Information Ratio 0.8 Alpha Ratio -2.01 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 21 ₹10,000 31 Jul 22 ₹10,489 31 Jul 23 ₹12,331 31 Jul 24 ₹18,500 31 Jul 25 ₹18,816 31 Jul 26 ₹18,703 Returns for Invesco India Contra Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 7 Aug 26 Duration Returns 1 Month 2.7% 3 Month 4.7% 6 Month 2.2% 1 Year 2.8% 3 Year 15.7% 5 Year 13.5% 10 Year 15 Year Since launch 14.5% Historical performance (Yearly) on absolute basis
Year Returns 2024 3.1% 2023 30.1% 2022 28.8% 2021 3.8% 2020 29.6% 2019 21.2% 2018 5.9% 2017 -3.3% 2016 45.6% 2015 6.7% Fund Manager information for Invesco India Contra Fund
Name Since Tenure Taher Badshah 13 Jan 17 9.55 Yr. Data below for Invesco India Contra Fund as on 30 Jun 26
Equity Sector Allocation
Sector Value Financial Services 30.43% Industrials 15.53% Consumer Cyclical 15.31% Health Care 12.29% Technology 7.87% Energy 4.71% Basic Materials 4.21% Real Estate 2.69% Communication Services 2.43% Consumer Defensive 1.82% Asset Allocation
Asset Class Value Cash 1.07% Equity 98.91% Top Securities Holdings / Portfolio
Name Holding Value Quantity ICICI Bank Ltd (Financial Services)
Equity, Since 31 May 17 | ICICIBANK6% ₹1,261 Cr 9,166,642 Larsen & Toubro Ltd (Industrials)
Equity, Since 30 Sep 20 | LT5% ₹1,050 Cr 2,535,263 Axis Bank Ltd (Financial Services)
Equity, Since 30 Jun 20 | 5322154% ₹779 Cr 5,786,546 Mahindra & Mahindra Ltd (Consumer Cyclical)
Equity, Since 31 Oct 21 | M&M3% ₹682 Cr 2,222,444 Reliance Industries Ltd (Energy)
Equity, Since 31 Oct 25 | RELIANCE3% ₹631 Cr 4,878,249 Infosys Ltd (Technology)
Equity, Since 30 Sep 13 | INFY3% ₹607 Cr 6,066,365
↑ 775,377 State Bank of India (Financial Services)
Equity, Since 31 May 26 | SBIN3% ₹523 Cr 5,094,371 Cholamandalam Investment and Finance Co Ltd (Financial Services)
Equity, Since 31 Dec 21 | CHOLAFIN3% ₹521 Cr 2,912,482 Bharti Airtel Ltd (Communication Services)
Equity, Since 31 Mar 26 | BHARTIARTL2% ₹487 Cr 2,628,845 Apollo Hospitals Enterprise Ltd (Healthcare)
Equity, Since 31 Mar 24 | APOLLOHOSP2% ₹447 Cr 514,459 3. SBI Contra Fund
SBI Contra Fund
Growth Launch Date 6 May 05 NAV (06 Aug 26) ₹381.955 ↓ -0.37 (-0.10 %) Net Assets (Cr) ₹47,362 on 30 Jun 26 Category Equity - Contra AMC SBI Funds Management Private Limited Rating ☆☆☆ Risk Moderately High Expense Ratio 1.53 Sharpe Ratio -0.57 Information Ratio 0.68 Alpha Ratio -1.15 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 21 ₹10,000 31 Jul 22 ₹11,505 31 Jul 23 ₹14,872 31 Jul 24 ₹21,693 31 Jul 25 ₹20,817 31 Jul 26 ₹20,892 Returns for SBI Contra Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 7 Aug 26 Duration Returns 1 Month 1.2% 3 Month 1.2% 6 Month -2.7% 1 Year 1.9% 3 Year 12.5% 5 Year 15.8% 10 Year 15 Year Since launch 14.4% Historical performance (Yearly) on absolute basis
Year Returns 2024 6.1% 2023 18.8% 2022 38.2% 2021 12.8% 2020 49.9% 2019 30.6% 2018 -1% 2017 -14.3% 2016 40.2% 2015 2.4% Fund Manager information for SBI Contra Fund
Name Since Tenure Dinesh Balachandran 7 May 18 8.24 Yr. Pradeep Kesavan 1 Dec 23 2.67 Yr. Data below for SBI Contra Fund as on 30 Jun 26
Equity Sector Allocation
Sector Value Financial Services 23.47% Basic Materials 9.72% Health Care 8.83% Consumer Cyclical 8.71% Energy 8.12% Utility 7.79% Industrials 6.14% Technology 4.91% Consumer Defensive 4.46% Communication Services 3.89% Real Estate 1.57% Asset Allocation
Asset Class Value Cash 2.99% Equity 95.28% Debt 1.74% Top Securities Holdings / Portfolio
Name Holding Value Quantity Nifty Index 28-07-2026
Derivatives, Since 30 Jun 26 | -8% ₹3,602 Cr 1,500,265
↑ 1,500,265 HDFC Bank Ltd (Financial Services)
Equity, Since 31 Aug 16 | HDFCBANK5% ₹2,430 Cr 30,449,258
↓ -6,495,448 Reliance Industries Ltd (Energy)
Equity, Since 31 Mar 23 | RELIANCE5% ₹2,292 Cr 17,717,567 ICICI Bank Ltd (Financial Services)
Equity, Since 28 Feb 17 | ICICIBANK4% ₹2,047 Cr 14,881,550
↑ 1,400,000 Biocon Ltd (Healthcare)
Equity, Since 30 Jun 21 | BIOCON4% ₹1,676 Cr 40,073,925 Torrent Power Ltd (Utilities)
Equity, Since 31 Oct 21 | 5327793% ₹1,271 Cr 8,982,410
↑ 677,499 Indus Towers Ltd Ordinary Shares (Communication Services)
Equity, Since 30 Jun 24 | 5348163% ₹1,258 Cr 32,126,692
↑ 2,373,534 Kotak Mahindra Bank Ltd (Financial Services)
Equity, Since 31 Mar 24 | KOTAKBANK3% ₹1,256 Cr 32,028,840 Punjab National Bank (Financial Services)
Equity, Since 30 Sep 22 | 5324613% ₹1,236 Cr 115,846,832 GAIL (India) Ltd (Utilities)
Equity, Since 28 Feb 21 | 5321552% ₹1,067 Cr 61,513,788
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