Contra Mutual Funds
Contra Mutual Funds take a distinctly unconventional route in the world of investing. Rather than following the crowd, contra funds seek out stocks or sectors that are currently underperforming but may be fundamentally sound. The idea is simple: what’s unpopular today could be tomorrow’s opportunity. Fund managers look for companies that are undervalued or temporarily beaten down, believing that the market often overreacts in the short term. As conditions change, these overlooked investments can bounce back. While the strategy isn’t without risk, contra mutual funds are built for investors who think long-term and aren’t afraid to go against the grain.
List of Contra Mutual Funds
| Fund Name | Fund Size (Cr.) | 3Y Returns | 5Y Returns |
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| Fund Name | 1Y Returns | Rating | Fund Size (Cr.) |
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How Does a Contra Mutual Fund Work?
Contra mutual funds operate on the principle of contrarian investing i.e. buying into stocks or sectors that are currently out of favor but have strong long-term potential. Instead of following prevailing market sentiment, contra funds identify undervalued opportunities others might be overlooking due to short-term setbacks or negative sentiment. Fund managers assess companies with solid fundamentals that may be temporarily underperforming and invest with the expectation that market perceptions will eventually shift. This strategy requires patience and discipline, as the turnaround may take time. The goal is to capitalise on market inefficiencies and cyclical trends, aiming for higher returns when these investments rebound. Contra mutual funds are best suited for long-term investors with a higher risk tolerance.
Popular Contra Mutual Funds
- Kotak Contra Fund - Direct Growth
- ₹ 100
- ₹ 5,1360
- 21.73%
- Min SIP Investment Amt
- ₹ 100
- AUM (Cr.)
- ₹ 5,136
- 3Y Return
- 21.73%
- Min SIP Investment Amt
- ₹ 100
- AUM (Cr.)
- ₹ 5,136
- 3Y Return
- 21.73%
- Invesco India Contra Fund - Direct Growth
- ₹ 100
- ₹ 20,6580
- 20.66%
- Min SIP Investment Amt
- ₹ 100
- AUM (Cr.)
- ₹ 20,658
- 3Y Return
- 20.66%
- Min SIP Investment Amt
- ₹ 100
- AUM (Cr.)
- ₹ 20,658
- 3Y Return
- 20.66%
- SBI Contra Fund - Direct Growth
- ₹ 500
- ₹ 49,9670
- 20.24%
- Min SIP Investment Amt
- ₹ 500
- AUM (Cr.)
- ₹ 49,967
- 3Y Return
- 20.24%
- Min SIP Investment Amt
- ₹ 500
- AUM (Cr.)
- ₹ 49,967
- 3Y Return
- 20.24%