Contra Mutual Funds

Contra Mutual Funds follow a contrarian investment strategy, making them unique among mutual funds. These funds go against prevailing market trends, purchasing stocks or sectors currently underperforming but with potential for long-term growth. Fund managers adopt a contrarian approach, identifying undervalued assets that others avoid or overhyped stocks with inflated prices. View More

The strategy relies on the belief that market trends are cyclical. Prices of overlooked stocks may rise as fundamentals improve, while overvalued assets may normalize over time. Contra Mutual Funds typically invest in sectors experiencing temporary downturns, holding on until they recover. This approach requires patience, as it may take years for these investments to realize their potential. While the risks are higher, Contra Mutual Funds generally have the potential to deliver significant long-term returns.

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Contra Mutual Funds List

Filters
logo SBI Contra Fund - Direct Growth

22.93%

Fund Size (Cr.) - 41,907

logo Kotak India EQ Contra Fund - Direct Growth

25.96%

Fund Size (Cr.) - 4,034

logo Invesco India Contra Fund - Direct Growth

33.68%

Fund Size (Cr.) - 18,019

Who Should Invest in Contra Mutual Funds?

Features of Contra Mutual Funds

Factors to Consider While Investing in Contra Mutual Funds

Popular Contra Mutual Funds

  • Min SIP Investment Amt
  • ₹ ₹ 500
  • AUM (Cr.)
  • ₹ 41,907
  • 3Y Return
  • 24.66%

  • Min SIP Investment Amt
  • ₹ ₹ 100
  • AUM (Cr.)
  • ₹ 4,034
  • 3Y Return
  • 23.59%

  • Min SIP Investment Amt
  • ₹ ₹ 100
  • AUM (Cr.)
  • ₹ 18,019
  • 3Y Return
  • 22.65%

FAQs

Contra funds are treated as equity funds for tax purposes. Short-term gains (under one year) are taxed at 15%, while long-term gains (over one year) above ₹1 lakh are taxed at 10% without indexation.

Contra funds can generate inflation-beating returns by targeting undervalued stocks. They offer good entry points during market downturns and are ideal for long-term investors seeking significant growth.

These funds are high-risk investments, focusing on undervalued equities and sectors with recovery potential. They involve higher volatility and demand a long-term perspective.

Investors with high risk tolerance and a long-term outlook can benefit. They are suitable for those looking for potential high returns and willing to navigate short-term market volatility.

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