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A contra fund is distinguishable from other funds by its investment strategy. A contra fund takes a contrarian position on an asset when it either experiences enthusiastic demand from investors or is rejected by them at a certain period in time owing to short-term events. In the article, we have heightened 3 top-rated contra fund that has delivered more than 20% returns in a 1-year investment period.
Should You Invest in the Contra fund?
A Contra Fund does not follow the market's momentum or place bets on the current favourite. Contra Fund, on the other hand, bets on the reverse - the underdog. As a result, if you have a decent risk tolerance, a 5-year investment horizon, and a lot of patience, you should consider investing in a Contra Mutual Fund. Contra fund managers invest in stocks that are presently failing due to short-term difficulties but have strong long-term growth potential. Contra might be a useful investment strategy for those with extended time horizons.
Kotak India EQ Contra Fund - Direct Plan-Growth, SBI Contra Fund - Direct Plan-Growth, and Invesco India Contra Fund - Direct Plan-Growth plans are three top-rated contra funds by Groww, an investing platform.
Lump Sum Investment Returns
Annualised Returns on Rs 10,000 Investment
| Contra Mutual Fund | 1-Year | 2-year | 3-Year | 5-Year | Since Inception |
|---|---|---|---|---|---|
| Kotak India EQ Contra Fund - Direct Plan - Growth | 17.07% | 22.70% | 20.77% | 17.90% | 16.24% |
| SBI Contra Fund - Direct Plan - Growth | 30.50% | 38.41% | 26.77% | 16.95% | 14.86% |
| Invesco India Contra Fund - Direct Plan - Growth | 17.15% | 23.25% | 21.73% | 17.81% | 18.97% |
SIP Returns
Absolute Returns on the SIP of Rs 1,000
| Contra Mutual Fund | 1-Year | 2-Year | 3-Year | 5-Year |
|---|---|---|---|---|
| Kotak India EQ Contra Fund - Direct Plan - Growth | 7.37% | 37.07% | 46.07% | 62.69% |
| SBI Contra Fund - Direct Plan - Growth | 11.78% | 57.08% | 69.95% | 76.98% |
| Invesco India Contra Fund - Direct Plan - Growth | 6.96% | 35.17% | 45.87% | 60.90% |
Disclaimer
Mutual fund investments are subject to market risk. Read all scheme-related documents, Terms and Conditions carefully before investing. The above-mentioned information is purely informational and carried forward from MoneyControl and Groww. The Greynium Information Technologies and the Author are not liable for any losses caused as a result of a decision based on the article.
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