Best Large Cap Mutual Funds

Best Contra Mutual Funds in India

Contra Mutual Funds follow a contrarian investment strategy, aiming to invest in undervalued stocks or sectors that are currently out of favour with the broader market. These funds anticipate a turnaround in performance, making them ideal for investors with a long-term horizon. They differ from traditional funds as they focus on identifying value where others might not see it, offering unique opportunities for wealth creation.

Key Benefits of Investing in Contra Mutual Funds

  • High Return Potential : Buy undervalued stocks at a discount, gaining as the market corrects
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Invest in Best Contra Mutual Funds in India for 2026

Explore the list of top-performing contra mutual funds schemes curated by our experts

SBI Contra Fund Growth

  • Returns
    20.6%
  • Lock-In
    No Lock in
  • Min Investment
    ₹ 5000
  • Choice Rating

Invesco India Contra Fund Growth

  • Returns
    15.3%
  • Lock-In
    No Lock in
  • Min Investment
    ₹ 1000
  • Choice Rating

Kotak Contra Fund - Growth

  • Returns
    16.9%
  • Lock-In
    No Lock in
  • Min Investment
    ₹ 100
  • Choice Rating

You would have got

close_grey_icon
Total Investment
₹ 1200
Expected Returns
₹ 46
Total Value
₹ 1246

Past performance doesn’t assure future results; actual outcome may vary due to market dynamics.

Your Investment Amount
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per annum

Understanding Contra Mutual Funds

How do Contra Mutual Funds Work?

Contra funds pool money from multiple investors to invest in undervalued stocks with the potential for future growth. Fund managers analyse market trends, company fundamentals, and economic factors to identify opportunities others might overlook.

By focusing on undervalued assets, contra mutual funds aim to provide significant returns when the market corrects its valuation. This strategy requires patience and a strong conviction in the chosen stocks' long-term growth prospects, making contra funds an essential part of a diversified portfolio.

Contra Mutual Funds FAQs

Unlike other funds that often focus on trending or high-growth stocks, Contra Mutual Funds target undervalued assets that are overlooked by the broader market.

These funds are ideal for long-term investors with a moderate-to-high risk tolerance who are comfortable with market fluctuations.

A 5 to 7 years investment horizon is recommended to fully capitalise on market corrections and the growth potential of undervalued stocks.

Risks include market volatility, economic downturns, sector concentration, and dependency on the fund manager’s decisions.

Some Contra Mutual Funds may offer dividends, but it depends on the fund's structure and performance. Investors should check the specific fund details.

Look at historical returns, the fund manager’s track record, expense ratio, portfolio composition, and risk metrics like the Sharpe ratio.

They often focus on sectors or companies currently undervalued, such as cyclical industries, out-of-favour stocks, or businesses with strong fundamentals but low market sentiment.

Yes, but an exit load may apply for early withdrawals, usually within a year. Review the specific fund’s terms before investing.

While they aim to mitigate downside risk by focusing on undervalued stocks, they are still exposed to market risks and may experience volatility during downturns.

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