Top Performing Contra Funds in 1 Year

The table below shows Top Performing Contra Funds in 1 Year based on the   AUM, NAV, and minimum SIP.

What Are Contra Funds?

Contra funds are mutual funds that invest in stocks that are currently undervalued or out of favour but have strong potential for long-term growth. These funds adopt a contrarian investment strategy, betting on a future price recovery.

Features Of Top Performing Contra Funds in 1 Year

The main features of top-performing contra funds over the past year include consistent returns, a focus on undervalued stocks, disciplined risk management and a long-term investment horizon, making them attractive for value-seeking investors.

• Consistent Returns: Top contra funds have delivered steady returns by carefully selecting undervalued stocks with potential for future growth, even during volatile market conditions. Their performance is driven by disciplined stock-picking and long-term investment strategies.

• Focus on Undervalued Stocks: These funds invest primarily in stocks that are currently undervalued but have strong fundamentals. The strategy relies on the expectation that these stocks will eventually realize their true market value, leading to significant gains.

• Disciplined Risk Management: Top-performing contra funds employ strict risk management practices, balancing the portfolio with a mix of high-potential undervalued stocks and stable investments, which helps mitigate potential losses and enhance overall portfolio stability.

• Long-term Investment Horizon: These funds are designed for long-term investors who are patient and willing to wait for undervalued stocks to recover. The long-term horizon allows the funds to capitalize on market inefficiencies and realize substantial returns over time.

Best Performing Contra Funds in 1 Year

The table below shows Best Performing Contra Funds in 1 Year based on the lowest to highest expense ratio and Minimum SIP

Top Performing Contra Funds in 1 Year In India

The table below shows the top-performing contra Funds in 1 Year In India based on the Highest 3Y CAGR and Minimum SIP

Top Performing Contra Funds in 1 Year List 

The table below shows Top Performing Contra Funds in 1 Year List based on exit load, i.e., the fee that the AMC charges investors when they exit or redeem their fund units.

Factors To Consider When Investing In Top Performing Contra Funds in 1 Year

The main factors to consider when investing in top-performing contra funds include the fund manager’s expertise, portfolio composition, risk tolerance and the fund’s historical performance, ensuring alignment with your investment goals and risk appetite.

• Fund Manager’s Expertise: The fund manager’s experience and track record play a crucial role in the fund’s success. A skilled manager can identify undervalued stocks with growth potential, effectively managing the portfolio for optimal returns.

• Portfolio Composition: Analyze the fund’s portfolio to understand the types of stocks it holds, including the sectors and industries targeted. A well-diversified portfolio with a focus on undervalued stocks can offer balanced risk and growth potential.

• Risk Tolerance: Contra funds can be more volatile than other types of mutual funds, as they invest in out-of-favor stocks. Assess your risk tolerance to ensure that the potential ups and downs align with your comfort level.

• Historical Performance: Review the fund’s past performance, particularly during market downturns. Consistent returns over different market cycles indicate the fund’s resilience and the effectiveness of its contrarian investment strategy.

How To Invest In Top Performing Contra Funds in 1 Year?

Invest in top-performing contra funds through a trusted financial advisor or online investment platform after careful research and analysis.

Start by setting clear investment goals and understanding how contra funds fit into your overall investment strategy and risk profile.

Regularly monitor your investment and adjust your portfolio as needed to stay aligned with your financial objectives and market conditions.

Advantages Of Investing In Top Performing Contra Funds in 1 Year?

The main advantages of investing in top-performing contra funds include the potential for high returns, diversification benefits, resilience in volatile markets and the opportunity to capitalize on undervalued stocks, making them an attractive option for long-term investors.

• Potential for High Returns: Contra funds invest in undervalued stocks that have strong growth potential. As these stocks recover, they can generate substantial returns for investors, often outperforming more traditional investment strategies over the long term.

• Diversification Benefits: These funds typically invest across various sectors and industries, providing diversification within a portfolio. This broad exposure can help reduce risk by spreading investments across multiple areas of the market.

• Resilience in Volatile Markets: Contra funds tend to perform well during market downturns, as they focus on stocks that are already undervalued. This resilience makes them a solid choice for investors seeking stability during uncertain economic periods.

• Capitalizing on Market Inefficiencies: Contra funds are designed to exploit market inefficiencies by investing in stocks that are temporarily out of favour. This contrarian approach can lead to significant gains when these stocks eventually realize their true market value.

Risks Of Investing In the Best Performing Contra Funds in 1 Year?

The main risks of investing in the best-performing contra funds include potential underperformance, higher volatility, longer recovery periods and dependence on fund manager expertise, which may not align with all investors’ risk tolerance and investment goals.

• Potential Underperformance: Contra funds can underperform during bull markets, as their strategy focuses on undervalued stocks. If the market favours growth stocks, these funds may lag behind more aggressive investment strategies, leading to lower short-term returns.

• Higher Volatility: Investing in out-of-favor stocks often comes with higher volatility. These stocks may take time to recover, and their prices can fluctuate significantly, leading to a more unpredictable investment experience compared to traditional funds.

• Longer Recovery Periods: Contra funds typically require a longer investment horizon to realize their full potential. Investors may need to wait several years for the market to recognize the value of the stocks in the fund’s portfolio, testing their patience.

• Dependence on Fund Manager Expertise: The success of a contra fund heavily relies on the fund manager’s ability to identify undervalued stocks. Poor decisions or misjudgments by the manager can lead to significant underperformance, making it crucial to choose a fund with a proven track record.

Introduction to Top Performing Contra Funds in 1 Year

SBI Contra Fund

SBI Contra Fund Category: Contra Fund with an AUM of ₹34,366.43 Crore. The 5-year CAGR is 34.21%, with an exit load of 1% and an expense ratio of 0.59%.

SBI Contra Direct Plan-Growth is an Equity Mutual Fund Scheme launched by SBI Mutual Fund. This scheme was made available to investors on 29 Jun 1987. Rama lyer Srinivasan is the Current Fund Manager of SBI Contra Direct Plan Growth fund. The fund currently has an Asset Under Management (AUM) of ₹10,37,900 Cr.

Invesco India Contra Fund

Invesco India Contra Fund Category: Contra Fund with an AUM of ₹17,268.79 Crore. The 5-year CAGR is 26.70%, with an exit load of 1% and an expense ratio of 0.51%.

Invesco India Contra Fund Direct Growth is an Equity Mutual Fund Scheme launched by Invesco Mutual Fund. This scheme was made available to investors on 24 Jul 2006. Amit Ganatra, Taher Badshah is the Current Fund Manager of Invesco India Contra Fund Direct Growth fund. The fund currently has an Asset Under Management (AUM) of 87,668 Cr.

Kotak India EQ Contra Fund

Kotak India EQ Contra Fund Category: Contra Fund with an AUM of ₹3,499.74 Crore. The 5-year CAGR is 26.89%, with an exit load of 1% and an expense ratio of 0.56%.

Kotak India EQ Contra Fund Direct-Growth is an Equity Mutual Fund Scheme launched by Kotak Mahindra Mutual Fund. This scheme was made available to investors on 05 Aug 1994. Deepak Gupta is the Current Fund Manager of Kotak India EQ Contra Fund Direct Growth fund. The fund currently has an Asset Under Management(AUM) of 4,39,120 Cr and the Latest NAV as of 23 Aug 2024 is 177.09.

Top Performing Contra Funds in 1 Year – FAQs  

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Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time. The securities quoted are exemplary and are not recommendatory.