Top 10 Contra Mutual Funds

Fund NameCategoryRisk1Y ReturnsRatingFund Size(in Cr)
Invesco India Contra FundEquityModerately High-11.8%5star3,880
Invesco India Contra FundEquityModerately High-11.8%5star3,880
Invesco India Contra FundEquityModerately High-12.8%5star3,880
Invesco India Contra FundEquityModerately High-12.8%5star3,880
Kotak Classic ContraEquityModerately High-6.7%4star811
Kotak Classic ContraEquityModerately High-6.7%4star811
Kotak Classic ContraEquityModerately High-8.0%4star811
Kotak Classic ContraEquityModerately High-8.0%4star811
SBI Contra FundEquityModerately High-16.4%2star1,341
SBI Contra FundEquityModerately High-16.4%2star1,341
SBI Contra FundEquityModerately High-17.0%2star1,341
SBI Contra FundEquityModerately High-17.0%2star1,341
View All Top 10 Contra Mutual Funds

Best Contra Mutual Funds

Contra funds involve a unique style of investing to gain market advantage. Underperforming companies are targeted and carefully evaluated to discover the reason behind it. Best contra mutual funds invest in those organizations which have massive potential for growth but are unable to reach those heights due to various external factors.

Let's have a closer look

Now let us jump and check about these top 10 mutual fund schemes.

Invesco India Contra Fund Direct Dividend

Fund Performance: This fund has consistently beaten its benchmark in Contra segment and provided 10.09% annualized returns in the last 3 years. In the last 1 year, it gave -11.76% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided -11.76% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹NaN. Minimum SIP investment amount for this scheme is ₹500. This is one of the best Equity mutual fund in India.

Launch Date
Min Investment AmtNaN
AUM3,880Cr
1Y Returns-11.8%

Invesco India Contra Fund Direct Growth

Fund Performance: This fund has consistently beaten its benchmark in Contra segment and provided 10.09% annualized returns in the last 3 years. In the last 1 year, it gave -11.76% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided -11.76% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹NaN. Minimum SIP investment amount for this scheme is ₹500. This is one of the best Equity mutual fund in India.

Launch Date
Min Investment AmtNaN
AUM3,880Cr
1Y Returns-11.8%

Invesco India Contra Fund Dividend

Fund Performance: This fund has consistently beaten its benchmark in Contra segment and provided 8.5% annualized returns in the last 3 years. In the last 1 year, it gave -12.77% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided -12.77% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹NaN. Minimum SIP investment amount for this scheme is ₹500. This is one of the best Equity mutual fund in India.

Launch Date
Min Investment AmtNaN
AUM3,880Cr
1Y Returns-12.8%

Invesco India Contra Fund Growth

Fund Performance: This fund has consistently beaten its benchmark in Contra segment and provided 8.5% annualized returns in the last 3 years. In the last 1 year, it gave -12.77% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided -12.77% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹NaN. Minimum SIP investment amount for this scheme is ₹500. This is one of the best Equity mutual fund in India.

Launch Date
Min Investment AmtNaN
AUM3,880Cr
1Y Returns-12.8%

Kotak India EQ Contra Fund Direct Dividend

Fund Performance: This fund has consistently beaten its benchmark in Contra segment and provided 11.05% annualized returns in the last 3 years. In the last 1 year, it gave -6.73% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided -6.73% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹NaN. Minimum SIP investment amount for this scheme is ₹1,000. This is one of the best Equity mutual fund in India.

Launch Date
Min Investment AmtNaN
AUM811Cr
1Y Returns-6.7%

Kotak India EQ Contra Fund Direct Growth

Fund Performance: This fund has consistently beaten its benchmark in Contra segment and provided 11.05% annualized returns in the last 3 years. In the last 1 year, it gave -6.73% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided -6.73% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹NaN. Minimum SIP investment amount for this scheme is ₹1,000. This is one of the best Equity mutual fund in India.

Launch Date
Min Investment AmtNaN
AUM811Cr
1Y Returns-6.7%

Kotak India EQ Contra Fund Regular Growth

Fund Performance: This fund has consistently beaten its benchmark in Contra segment and provided 9.42% annualized returns in the last 3 years. In the last 1 year, it gave -8.01% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided -8.01% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹NaN. Minimum SIP investment amount for this scheme is ₹1,000. This is one of the best Equity mutual fund in India.

Launch Date
Min Investment AmtNaN
AUM811Cr
1Y Returns-8.0%

Kotak India EQ Contra Fund Regular Dividend

Fund Performance: This fund has consistently beaten its benchmark in Contra segment and provided 9.42% annualized returns in the last 3 years. In the last 1 year, it gave -8.01% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided -8.01% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹NaN. Minimum SIP investment amount for this scheme is ₹1,000. This is one of the best Equity mutual fund in India.

Launch Date
Min Investment AmtNaN
AUM811Cr
1Y Returns-8.0%

SBI Contra Direct Plan Growth

Fund Performance: This fund has consistently beaten its benchmark in Contra segment and provided 0.23% annualized returns in the last 3 years. In the last 1 year, it gave -16.45% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided -16.45% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹NaN. Minimum SIP investment amount for this scheme is ₹500. This is one of the best Equity mutual fund in India.

Launch Date
Min Investment AmtNaN
AUM1,341Cr
1Y Returns-16.4%

SBI Contra Direct Plan Dividend

Fund Performance: This fund has consistently beaten its benchmark in Contra segment and provided 0.23% annualized returns in the last 3 years. In the last 1 year, it gave -16.45% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided -16.45% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹NaN. Minimum SIP investment amount for this scheme is ₹500. This is one of the best Equity mutual fund in India.

Launch Date
Min Investment AmtNaN
AUM1,341Cr
1Y Returns-16.4%

SBI Contra Fund Growth

Fund Performance: This fund has consistently beaten its benchmark in Contra segment and provided -0.42% annualized returns in the last 3 years. In the last 1 year, it gave -16.97% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided -16.97% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹NaN. Minimum SIP investment amount for this scheme is ₹500. This is one of the best Equity mutual fund in India.

Launch Date
Min Investment AmtNaN
AUM1,341Cr
1Y Returns-17.0%

SBI Contra Fund Dividend

Fund Performance: This fund has consistently beaten its benchmark in Contra segment and provided -0.42% annualized returns in the last 3 years. In the last 1 year, it gave -16.97% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided -16.97% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹NaN. Minimum SIP investment amount for this scheme is ₹500. This is one of the best Equity mutual fund in India.

Launch Date
Min Investment AmtNaN
AUM1,341Cr
1Y Returns-17.0%

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Features of Contra Mutual Fund

<p>Contra funds are a source of long term investment, thereby attracting risk-prone investors seeking to take advantage of the growth phase.</p> <p>The <strong>best contra funds</strong> only invest in underachieving companies as per SEBI regulations. A mutual fund cannot comprise both regular and contra companies at the same time.</p> <p>Contra funds are different from value funds in one crucial aspect. They both seek opportunities to invest in companies with vast untapped potential. However, the underlying strategy adopted by these mutual funds is different – the <strong>best contra mutual funds</strong> aim at those companies with huge asset base and management skills, increasing its chances of growing exponentially in the future. On the other hand, value funds target those companies which already have a well-established and credible reputation. The primary reason behind the low unit prices of these companies is the external market factors influencing their extrinsic value.</p>

Taxability

<p>There are several tax benefits of investing in a contra Mutual Fund. Under section 80C of the Income Tax Act, the dividend earned from such mutual funds is deductible from your taxable income, up to 1.5 Lakh per annum.</p> <p>The capital gains earned from the purchase and resale of a share is accountable under income tax. A tax rate of 15% has to be paid on short term capital gains (up to 36 months), while only 10% is payable on profits made for more than 36 months.</p> <p>However, tax-deductible on capital gains is subject to indexation as well. Adjusting for the prevalent inflation in the country reduces the tax burden of the investors significantly.</p>

Who Are These Funds Suited For?

<p>The <strong>best contra fund</strong> does not yield positive results in the short term. Investors have to wait for a considerable time to realise profits. Investors targeting contra funds are risk-takers, as they gamble on the turbulent fluctuations of the stock market.</p> <p>It also provides a first-mover advantage to the investors, exploiting the low share prices currently, only to enjoy substantial gains when they sell it afterwards as the share prices appreciate.</p> <p>An important thing to be kept in mind while investing in any contra fund is to not fall into any ‘value traps.’ Portfolio managers of the <strong>best contra mutual funds</strong> carefully evaluate the reason behind an underperforming organization and opt for ones with the highest potential to shine in the future.</p> <p>However, investing in companies which seem to have a value from a distance, and thus creating a value trap, will lead to substantial losses. The efficiency of people responsible for building the portfolio of a fund is crucial to determine the <strong>best contra fund in 2019</strong>.</p> <p>The sector in which these funds are investing also determines their success rate and growth potential. A company operating in one of the major areas of an economy, with relevant assets to back up the targeted growth rate, will be an ideal place to invest in. <strong>Best contra fund 2019</strong> target companies in capital goods and the IT sectors, as they are the leading sectors in the country as of this year.</p>

Major Advantages

<p>The major advantages of investing in a Contra fund are –</p> <ul> <li>Higher profits can be earned by investing in contra funds as compared to standard equity mutual funds. Blue-chip companies have a glass ceiling on the share price growth. Thus huge profits cannot be availed, as compared to contra companies, whose share prices fluctuate at a higher rate.</li> <li>As contra funds have not gained high popularity in the country, the minimum investment price is relatively low. Thus, the initial investment can be less in case of such funds. As the price rises in the long term, you can make substantial capital gains. Many contra funds do not charge any entry or exit load as well, lowering the cost of investing. Equity mutual funds, on the other hand, have a lot of added expenses making it a costly option.</li> <li>Generally, contra funds are exposed during times of stagnant economic growth of the country, when the investment level is low. This implies weak and unreliable predictions of stock market indices of such small-cap companies.</li> </ul>

What does investing in contra mutual funds actually mean?

Suppose a mutual fund invests in ten stocks and total current market value of these stocks is 1.1 Crore. Out of this, the AMC deducts say, 0.1 Crore for operating the fund (this is known as the expense ratio). So the net value is 1 crore. Now the AMC will divide this 1 Crore into say, 10,000 parts. These parts are known as units. The cost of one unit is 1Cr/10,000 = Rs. 1000. This is known as the Net Asset Value (NAV) of the mutual fund. Suppose the AMC has set a minimum investment requirement of Rs. 500. Then if you pay Rs. 500, you will get 0.5 units of the fund. Remember that the cost of one unit is the cost when you made the purchase. Suppose after one year, the NAV has fallen to Rs. 700 per unit and you wish to exit the fund (also known as redemption), then you sell your 0.5 units back to the AMC and get 0.5 x Rs. 700 = Rs. 350 back. Yes, you invested Rs. 500 and got back Rs. 350 – a loss of 150 over a year. The point is, that you buy units at current NAV and sell units (fully or partially) at current NAV. This is what investing in mutual fund actually means.

Do contra mutual fund guarantee returns?

Well, sales guys would love to tell you that “over the long term” you will get good returns from mutual funds, but the truth is, there is no guarantee. As the above example shows, you buy at current market value and sell at the current market value. Anything, literally anything can happen in between spectacular returns or spectacular losses. Unless you are mentally ready to accept this and learn how to minimise this risk, do not invest in mutual funds.

Are contra mutual funds safe to invest in?

That depends on what you mean by safe! If by safe you mean capital protection – that is, you invest Rs. 500 and even if returns are zero, your Rs. 500 is safe

How to invest in contra mutual funds on Groww?

One of the best ways to hedge against the small-cap volatility is to adopt a phased approach, also known as Systematic Investment Plan (SIP) approach. We are sure that you must be aware of SIP and its benefits. Buying in small quantity but buying regularly provides you with faster growth. On Groww.in, all transactions to and from AMC is done via BSE. When you decide to invest in a large cap mutual fund of your choice, you choose that mutual fund on the website and click ‘invest’. Following that, you are redirected to the BSE page where you make the payment. BSE then directs your money to the AMC managing your mutual fund. To be assured at your end, you can visit the individual AMC website after the payment. You would be able to see all your purchased units against your folio number.

How long does it take to start investing in contra mutual funds if I do not have a KYC?

It is not possible for any investor to start investing in mutual funds without having completed the KYC process. Under the Prevention of Money Laundering Act (PMLA), Know Your Customer (KYC) norms have been mandated to track the legality of funds used in an investment. KYC is a one-time process which every first-time mutual fund investor needs to follow, to be able to invest in a mutual fund. KYC process on Groww can be completed in 2-3 days. KYC can be completed online with the help of E-KYC or electronic KYC. E-KYC Aadhar (based on OTP) : Investor can use online KYC facility using just the aadhar card number and PAN number, by visiting the website and following the easy process. After entering relevant details like aadhar and PAN number, investor will receive an OTP and KYC will be completed instantly. However, one can invest only up to ₹50,000 per fund house per year under this method.

When is the right time to start investing in contra mutual Funds?

The answer to this question depends on the following criteria: 1) the rating and performance of mutual fund you are investing into 2) the amount of risk you are willing to take Depending on the above factors let&#39;s go ahead: 1) the performance of mutual fund you are investing into makes a lot of difference since a lot of research needs to be done before investing. i) how that particular fund is diversifying its assets since many of funds are sector funds and some others put a lot of money into one sector like banking/finance. ii) But if that particular sector doesn&#39;t perform well in the long term you would end up losing your money iii) Some sectors like FMCG (HUL, Dabur) or automobile like Maruti Suzuki(because of innovations it brings in) almost make profits throughout the year and hence it&#39;s very advantageous to invest in them for long-term in these sectors. Investment time: more than 3 years. 2) The amount of risk you are willing to take i) It is important since if you want to invest in low-risk funds, debt funds will be the best option(moderate returns, low risk) investment time period: less than 1 or 1.5 years ii) But if you want high returns, more diversification equity mutual funds will be the best since higher the risk, more will be the returns.Investment time: depending on the performance of fund (on an average 4 or greater than 4 years) iii) For a balanced portfolio, you may invest into balanced mutual funds where there is a combination of both equity and debt mutual funds which will again help you to invest for a good duration like less than 2-3 years.

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