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Value/Contra Mutual Funds Follow the Best Investment Strategy or Do as Experts’ Do

  • Total Funds 14
  • Average annual returns 22.53%

money-icon Value/Contra Mutual Funds

Follow the Best Investment Strategy or Do as Experts’ Do. More

  • Total Funds : 14
  • Average annual returns 22.53%

What is Contra Mutual Fund?

A contra fund is a fund following the contrary strategy of investment against the growth investment strategy. The fund manager of the scheme chooses the stocks of the companies which are either depressed or under-performing at that time. By investing in contra mutual fund, the manager expects that the fund has been mispriced by the investors and will grow up in a long-term horizon. Value investing is approached with the expectation of high growth from undervalued stocks.

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SIP of ₹5000 for the period of 5 Yrs edit

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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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