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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
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 Below is the key information for SBI Contra Fund Returns up to 1 year are 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. 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 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. 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 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 (%) 2023 (%) SBI Contra Fund Growth ₹363.804
↑ 3.78 ₹41,907 -8.1 -5.4 12.8 19.8 27.9 18.8 Kotak India EQ Contra Fund Growth ₹139.842
↑ 0.67 ₹4,034 -9.3 -7.3 13.7 17.2 19.9 22.1 Invesco India Contra Fund Growth ₹127.73
↑ 0.23 ₹18,019 -9 -1.2 20.3 16.7 20.4 30.1 Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 14 Jan 25 Assets >= 100 Crore & Sorted on 3 year CAGR Returns.
1. SBI Contra Fund
CAGR/Annualized return of 15.1% since its launch. Ranked 48 in Contra category. Return for 2024 was 18.8% , 2023 was 38.2% and 2022 was 12.8% . SBI Contra Fund
Growth Launch Date 6 May 05 NAV (14 Jan 25) ₹363.804 ↑ 3.78 (1.05 %) Net Assets (Cr) ₹41,907 on 30 Nov 24 Category Equity - Contra AMC SBI Funds Management Private Limited Rating ☆☆☆ Risk Moderately High Expense Ratio 1.7 Sharpe Ratio 1.6 Information Ratio 1.93 Alpha Ratio 5.21 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 Dec 19 ₹10,000 31 Dec 20 ₹13,060 31 Dec 21 ₹19,580 31 Dec 22 ₹22,078 31 Dec 23 ₹30,516 31 Dec 24 ₹36,253 Returns for SBI Contra Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 14 Jan 25 Duration Returns 1 Month -6.4% 3 Month -8.1% 6 Month -5.4% 1 Year 12.8% 3 Year 19.8% 5 Year 27.9% 10 Year 15 Year Since launch 15.1% Historical performance (Yearly) on absolute basis
Year Returns 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% 2014 -0.1% Fund Manager information for SBI Contra Fund
Name Since Tenure Dinesh Balachandran 7 May 18 6.66 Yr. Pradeep Kesavan 1 Dec 23 1.09 Yr. Data below for SBI Contra Fund as on 30 Nov 24
Equity Sector Allocation
Sector Value Financial Services 20.08% Technology 9.06% Basic Materials 8.51% Energy 7.69% Health Care 7.01% Industrials 6.79% Consumer Cyclical 6.65% Utility 5.22% Consumer Defensive 4.72% Communication Services 4.47% Real Estate 0.52% Asset Allocation
Asset Class Value Cash 18.35% Equity 80.73% Debt 0.92% Top Securities Holdings / Portfolio
Name Holding Value Quantity HDFC Bank Ltd (Financial Services)
Equity, Since 31 Aug 16 | HDFCBANK5% ₹2,285 Cr 12,723,129 Reliance Industries Ltd (Energy)
Equity, Since 31 Mar 23 | RELIANCE4% ₹1,593 Cr 12,328,250
↑ 2,850,000 GAIL (India) Ltd (Utilities)
Equity, Since 28 Feb 21 | GAIL2% ₹1,037 Cr 51,993,788
↑ 10,820,000 Tech Mahindra Ltd (Technology)
Equity, Since 31 Mar 22 | TECHM2% ₹991 Cr 5,786,409 Kotak Mahindra Bank Ltd (Financial Services)
Equity, Since 31 Mar 24 | KOTAKBANK2% ₹905 Cr 5,128,168 State Bank of India (Financial Services)
Equity, Since 31 Dec 10 | SBIN2% ₹860 Cr 10,254,269 Oil & Natural Gas Corp Ltd (Energy)
Equity, Since 31 Dec 22 | ONGC2% ₹818 Cr 31,885,412
↑ 7,993,750 ITC Ltd (Consumer Defensive)
Equity, Since 31 Jul 20 | ITC2% ₹799 Cr 16,766,741 Tata Steel Ltd (Basic Materials)
Equity, Since 31 Jul 22 | TATASTEEL2% ₹766 Cr 52,995,525 Whirlpool of India Ltd (Consumer Cyclical)
Equity, Since 29 Feb 24 | WHIRLPOOL2% ₹747 Cr 4,040,000 2. Kotak India EQ Contra Fund
CAGR/Annualized return of 14.5% since its launch. Ranked 30 in Contra category. Return for 2024 was 22.1% , 2023 was 35% and 2022 was 7.4% . Kotak India EQ Contra Fund
Growth Launch Date 27 Jul 05 NAV (15 Jan 25) ₹139.842 ↑ 0.67 (0.48 %) Net Assets (Cr) ₹4,034 on 30 Nov 24 Category Equity - Contra AMC Kotak Mahindra Asset Management Co Ltd Rating ☆☆☆ Risk Moderately High Expense Ratio 2.04 Sharpe Ratio 1.93 Information Ratio 2.07 Alpha Ratio 6.44 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 Dec 19 ₹10,000 31 Dec 20 ₹11,517 31 Dec 21 ₹14,992 31 Dec 22 ₹16,097 31 Dec 23 ₹21,732 31 Dec 24 ₹26,536 Returns for Kotak India EQ Contra Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 14 Jan 25 Duration Returns 1 Month -8.1% 3 Month -9.3% 6 Month -7.3% 1 Year 13.7% 3 Year 17.2% 5 Year 19.9% 10 Year 15 Year Since launch 14.5% Historical performance (Yearly) on absolute basis
Year Returns 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% 2014 -3.4% Fund Manager information for Kotak India EQ Contra Fund
Name Since Tenure Shibani Kurian 9 May 19 5.65 Yr. Data below for Kotak India EQ Contra Fund as on 30 Nov 24
Equity Sector Allocation
Sector Value Financial Services 26.92% Technology 13.52% Industrials 10.44% Consumer Cyclical 8.7% Consumer Defensive 7.17% Health Care 6.36% Basic Materials 6% Communication Services 5.55% Energy 4.64% Utility 4.4% Real Estate 1.17% Asset Allocation
Asset Class Value Cash 3.19% Equity 96.81% Top Securities Holdings / Portfolio
Name Holding Value Quantity ICICI Bank Ltd (Financial Services)
Equity, Since 30 Apr 18 | ICICIBANK5% ₹213 Cr 1,639,051 Infosys Ltd (Technology)
Equity, Since 31 Oct 10 | INFY4% ₹174 Cr 938,800 HDFC Bank Ltd (Financial Services)
Equity, Since 30 Sep 10 | HDFCBANK4% ₹155 Cr 863,432 State Bank of India (Financial Services)
Equity, Since 31 Oct 16 | SBIN4% ₹152 Cr 1,817,000
↑ 268,000 Tech Mahindra Ltd (Technology)
Equity, Since 30 Jun 23 | TECHM3% ₹129 Cr 752,000 Mphasis Ltd (Technology)
Equity, Since 29 Feb 24 | MPHASIS3% ₹125 Cr 419,653 Bharti Airtel Ltd (Communication Services)
Equity, Since 31 Oct 17 | BHARTIARTL3% ₹109 Cr 672,149 Reliance Industries Ltd (Energy)
Equity, Since 30 Sep 08 | RELIANCE2% ₹97 Cr 751,648 Axis Bank Ltd (Financial Services)
Equity, Since 30 Nov 18 | AXISBANK2% ₹94 Cr 831,000
↑ 168,000 Hindustan Unilever Ltd (Consumer Defensive)
Equity, Since 31 May 17 | HINDUNILVR2% ₹89 Cr 356,238 3. Invesco India Contra Fund
CAGR/Annualized return of 15.4% since its launch. Ranked 11 in Contra category. Return for 2024 was 30.1% , 2023 was 28.8% and 2022 was 3.8% . Invesco India Contra Fund
Growth Launch Date 11 Apr 07 NAV (15 Jan 25) ₹127.73 ↑ 0.23 (0.18 %) Net Assets (Cr) ₹18,019 on 30 Nov 24 Category Equity - Contra AMC Invesco Asset Management (India) Private Ltd Rating ☆☆☆☆ Risk Moderately High Expense Ratio 1.7 Sharpe Ratio 2.31 Information Ratio 1.28 Alpha Ratio 11.38 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 Dec 19 ₹10,000 31 Dec 20 ₹12,118 31 Dec 21 ₹15,701 31 Dec 22 ₹16,296 31 Dec 23 ₹20,993 31 Dec 24 ₹27,320 Returns for Invesco India Contra Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 14 Jan 25 Duration Returns 1 Month -8% 3 Month -9% 6 Month -1.2% 1 Year 20.3% 3 Year 16.7% 5 Year 20.4% 10 Year 15 Year Since launch 15.4% Historical performance (Yearly) on absolute basis
Year Returns 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% 2014 4% Fund Manager information for Invesco India Contra Fund
Name Since Tenure Amit Ganatra 1 Dec 23 1.09 Yr. Taher Badshah 13 Jan 17 7.97 Yr. Data below for Invesco India Contra Fund as on 30 Nov 24
Equity Sector Allocation
Sector Value Financial Services 30.64% Consumer Cyclical 14.73% Health Care 13.64% Technology 10.52% Industrials 9.2% Basic Materials 4.9% Utility 3.76% Consumer Defensive 2.97% Communication Services 2.43% Energy 2.29% Real Estate 1.38% Asset Allocation
Asset Class Value Cash 1.27% Equity 98.73% Top Securities Holdings / Portfolio
Name Holding Value Quantity HDFC Bank Ltd (Financial Services)
Equity, Since 30 Apr 14 | HDFCBANK7% ₹1,323 Cr 7,366,524 ICICI Bank Ltd (Financial Services)
Equity, Since 31 May 17 | ICICIBANK7% ₹1,288 Cr 9,908,135 Infosys Ltd (Technology)
Equity, Since 30 Sep 13 | INFY6% ₹1,141 Cr 6,141,812 Axis Bank Ltd (Financial Services)
Equity, Since 30 Jun 20 | AXISBANK3% ₹629 Cr 5,535,787 NTPC Ltd (Utilities)
Equity, Since 31 Mar 21 | NTPC3% ₹564 Cr 15,520,651 Coforge Ltd (Technology)
Equity, Since 31 Mar 22 | COFORGE3% ₹468 Cr 538,619 Mahindra & Mahindra Ltd (Consumer Cyclical)
Equity, Since 31 Oct 21 | M&M3% ₹467 Cr 1,575,803 REC Ltd (Financial Services)
Equity, Since 31 Jan 24 | RECLTD3% ₹465 Cr 8,727,741 Larsen & Toubro Ltd (Industrials)
Equity, Since 30 Sep 20 | LT2% ₹439 Cr 1,178,799 Zomato Ltd (Consumer Cyclical)
Equity, Since 30 Jun 23 | 5433202% ₹435 Cr 15,548,917
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.
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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