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Contra Mutual Funds

Find here some best Contra fund to invest

  • Annual Returns 16.1%
  • Average Risk High
  • Total Funds 3

What is Contra Mutual Fund?

A Contra Fund is an equity mutual fund that follows a contrarian investing style, focusing on undervalued or unpopular companies. It aims to buy these underperforming stocks at low valuations, betting on their potential for future growth when their performance improves.  Including this category in your portfolio can be a smart option for long-term investors seeking value that may develop over time.

1. The Advantages of Investing in Contra Mutual Funds 2. 3 Best Contra Mutual Funds in India 3. How to Invest in Contra Mutual Funds via MySIPonline? 4. Who Should Invest in a Contra Mutual Fund?

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Top Performing Contra in India for High Return

AMC List

  • Kotak
  • Aditya Birla Sun Life
  • ICICI
  • Tata
  • HDFC
  • SBI
  • UTI
  • Nippon
  • Sundaram
  • Canara
  • Invesco
  • Axis
  • Baroda BNP Paribas
  • DSP
  • EDELWEISS
  • Franklin
  • HSBC
  • LIC
  • Mirae Asset
  • Motilal Oswal
  • Mahindra
  • PGIM
  • WOC
  • Bandhan
  • 360 One
  • Bajaj Finserv
  • Quant
  • Parag Parikh
  • ITI

Minimum SIP Amt.

  • ₹100 - ₹500
  • ₹500 - ₹1000
  • ₹1000 - ₹5000

Fund Option

  • Growth
  • Dividend
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Snapshot

Returns

Risk

Information

NAV Details

Compare Funds

Lumpsum 3Y P.a 24.79%
SIP 3Y P.a. 27.18%
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Lumpsum 3Y P.a 22.92%
SIP 3Y P.a. 27.22%
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Lumpsum 3Y P.a 21.39%
SIP 3Y P.a. 27.75%
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Short Term

Long Term

SIP

Rolling Term

1 Week 3.14%
1 Month 1.66%
3 Months -3.07%
6 Months 9.52%
1 Year 30.67%
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1 Week 3.59%
1 Month 1.74%
3 Months -2.73%
6 Months 10.4%
1 Year 35.27%
Invest
1 Week 3.09%
1 Month 1.84%
3 Months -0.65%
6 Months 16.11%
1 Year 41.16%
Invest
2 Years 28.23%
3 Years 24.79%
5 Years 29.76%
Annual Rt 17.4%
Invest
2 Years 28.6%
3 Years 22.92%
5 Years 22.37%
Annual Rt 15.38%
Invest
2 Years 28.02%
3 Years 21.39%
5 Years 22.63%
Annual Rt 15.9%
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Min SIP ₹500
Min Lumpsum ₹5000
Expense Ratio 1.56%
Fund Manager Dinesh Balachandran
Launch Date 14-Jul 1999
Invest
Min SIP ₹100
Min Lumpsum ₹100
Expense Ratio 1.88%
Fund Manager Shibani Sircar Kurian
Launch Date 27-Jul 2005
Invest
Min SIP ₹100
Min Lumpsum ₹1000
Expense Ratio 1.67%
Fund Manager Taher Badshah
Launch Date 11-Apr 2007
Invest

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Comparison of Top Contra Funds

Contra Funds Return Calculator

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  • Invested Amount
  • Estimated Returns

  • Invested Amount ₹43,855
  • Interest Earned ₹6,145

The Advantages of Investing in Contra Mutual Fund

It is important to identify the benefits of schemes before investing in a Contra Fund. Here are some key points to focus on:

1. Higher Returns Potential: Contra Funds focus on undervalued stocks that have the potential to deliver high returns once they recover.

2. Less Competition: They invest in companies often overlooked by others, leading to less impact from institutional trading.

3. Buying Low: These Mutual Funds buy stocks when prices are low, allowing investors to benefit from future gains.

4. Better in Downturns: Contra funds tend to hold their value better during market crashes compared to high-risk stocks.

5. Unlock Hidden Value: They invest in stocks with hidden potential, which can surge in value when underlying issues are resolved.

Investing in Contra Mutual Funds offers the chance for significant gains and can be a good strategy during market volatility.

3 Best Contra Funds in India

Let's look closely at the 3 Best Contra Funds in India to invest in:

  1. SBI Contra Fund

    After being launched on 14 July 1999, makes SBI Contra Fund is the oldest Equity scheme in its category. It holds an impressive AUM (Asset under Management) at Rs.29586 Crores as of 30th April 2024. SBI finds opportunities across different market caps and sectors by using top-down and bottom-up analysis. This stock has built its strategy on patience and capitalizes on the future recovery of the investments purchased at low valuations.

  2. Invesco Contra Fund

    The Invesco India Contra Fund was established on 11th April 2007. It has shown a robust performance of 18.51% returns in the last 3 years whereas its benchmark has given only 13.96% returns. They use a contrarian investment approach that is set on investing in fundamentally strong companies in the temporarily unpopular sector and keeping them for a long duration. Invesco's expertise is their right execution of investing strategy which boosts the chances of this scheme's success.

  3. Kotak India EQ Contra Fund

    Being a contra-style fund, the Kotak India EQ Contra Fund is built with a combination of quantitative and fundamental analysis. Since its arrival, the fund has delivered a strong 18.51% return, significantly outperforming its benchmark index, which returned only 13%. With the renowned reputation of Kotak AMC, it has been a consistent performer with 85% consistency in generating high returns.

How to Invest in Contra Mutual Fund via MySIPonline?

The following steps will be your easy step-by-step guide to investing in Contra Mutual Funds:

Step 1: Log in to MySIPonline

Step 2:  Check your KYC and if it is not registered do Video KYC

Step 3: Complete profile (PAN card, Aadhar number, bank details, nominee & signature)

Step 4: Explore the Best Contra Fund from Respective AMC Name or Talk to an expert

Step 5: Select your preferred Contra Fund

Step 6: Add funds to the cart and choose the investment option between sip or lumpsum

Step 7: Make a payment from UPI or net banking

Step 8: Track your investment daily at the dashboard and use our analysis to manage it.

These steps provide a simple way to begin, allowing you to invest through SIP for greater flexibility in your portfolio.

Who Should Invest in a Contra Mutual Fund?

It is necessary to check if the contra fund is suitable for you, read the following points to know more:

Patient Investors: Contra funds often invest in undervalued stocks that can take time to recover. Therefore, they are suitable for investors who can wait patiently for 3-4 years to see substantial returns.

Long-term Investors: These funds are designed for long-term growth rather than short-term gains. Investors who understand and accept that it may take several years for the investments to realize their full potential are more likely to benefit from contra funds.

Investors with Strong Conviction: Ideal for those who have confidence in their investment strategy and the potential of the chosen contra funds. Investors need to believe in their choices despite market volatility and periods of underperformance.

Also, you can simplify your investments by using the SIP Calculator and get to know your estimated returns.

Frequently Asked Questions

Who should invest in Contra Mutual Funds?
Contra funds are suitable for the investors who can digest high risk in search for higher returns. Moreover, these funds are not suitable for the investors who are stepping in the finance market with a short term investment perspective as they might end up delivering negative returns.
What is the minimum investment required for investing in Contra funds?
The minimum investment depends from one scheme to another. In general, for lumpsum investment the minimum investment can range from Rs. 500 to Rs. 5000. Whereas, in case of SIP, the range may vary between Rs. 500 to Rs. 1000. For authentic information, never forget to check the scheme related documents.
What is the investment philosophy followed by Contra companies?
The fund manager of Contra fund targets the best small sized companies having the potential to generate excellent gains in the future. Such companies do not have much resources as the large cap or mid cap companies but have high potential to outperform many big companies.
Why to invest in Contra funds?
Contra funds have more tendency of providing exceptional returns than the other categories of funds. Moreover, they can also be a suitable option for providing diversification to your portfolio.
How risky are Contra funds?
Contra funds are one of the riskiest mutual funds. But at the same time rewards are also high. Therefore, an investor who is willing to expose his corpus towards risk for fetching higher returns should invest in Contra funds.
Are Contra Funds for long term investment?
Yes, Contra funds are a suitable choice for generating long term capital appreciation. Moreover, in short term these funds can cause double digit losses to the investors. Thus, always maintain a long term investment perspective while investing in Contra mutual funds.
What is the benchmark of Contra Fund?
Benchmark is a standard with which a mutual fund competes in terms of growth & performance. Different Contra funds have different benchmark. Thus, read the mutual fund document carefully to know the benchmark.
What are the taxes applied on Contra Mutual Funds?
Contra funds are eligible for two types of taxes- STCG (Short Term Capital Gain) and LTCG (Long Term Capital Gain). STCG is the capital gain generated on the units which are hold for up to 1 year. The STCG tax imposed by the Government of India is 15%. LTCG is the profit generated on the units which are hold for more than one years. The LTCG levied is 10% for the profit above Rs. 1 Lakh.

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