Contra Mutual Fund schemes: There are many schemes of Mutual Funds, one of which is Contra Funds. In many of these schemes, investors got double returns in 5 years.
What is Contra Mutual Fund: People from small cities and towns are now investing in mutual fund schemes apart from metro cities. The return on investment in these is attracting a lot of new investors. There are many categories of mutual funds. One of these categories is of Contra funds. The returns in these funds under the category of equity funds have also been strong. There are many contra funds in which the investment of Rs 1 lakh of investors in the last 5 years will be more than Rs 2 lakh. That is, investors got double returns. Now the question here is who should invest in these schemes and what kind of risk are there in them. At the same time, in which companies do fund houses invest the assets of these schemes?
A type of equity fund
AK Nigam, Director, BPN Fincap, says that Contra Funds are a type of Equity Fund. In these, fund managers place bets against the current market trends. Under these schemes, they invest in those companies, which are either under a lot of pressure or are under-performing at that time. In simple words, fund houses invest the money of these schemes in such companies, which are expected to perform better in future. Which will be available in the coming years.
Who should invest
Nigam says, Contra funds are in the high risk category. Because investment is made on the prospects of good performance of the stock in the future. It may take longer. These funds should be invested by such investors who can sustain the investment for long term with full patience. However, one good thing here is that it helps in diversifying the portfolio. But never ignore its ricks.
Double returns in 5 years
Looking at the performance of Contra Funds in the last 5 years, there are many funds in which investors have got good returns. Some funds have doubled investors’ money.
SBI Contra Fund
- Annual return in 5 years: 15.10 per cent
- Value of investment of Rs 1 lakh: Rs 2.02 lakh
- Value of 10,000 Monthly SIP: Rs 10.95 lakh
- Minimum investment: Rs 5,000
- Minimum SIP: Rs 500
- Launch Date: 14 July 1999
- Assets: Rs 2,974 crore (as on 30 September 2021)
- Expansion Ratio: 2.11% (as on 30 September 2021)
Invesco India Contra Fund
- Annual return in 5 years: 17.27 per cent
- Value of investment of Rs 1 lakh: Rs 2.22 lakh
- Value of 10,000 Monthly SIP: Rs 10.26 lakh
- Minimum investment: Rs 1,000
- Minimum SIP: Rs 500
- Launch date: 11 April 2007
- Assets: Rs 8,411 crore (as on 30 September 2021)
- Expansion Ratio: 1.74% (as on 30 September 2021)
Kotak India EQ Contra Fund
- Annual return in 5 years: 17.16 per cent
- Value of investment of Rs 1 lakh: Rs 2.21 lakh
- Value of 10,000 Monthly SIP: Rs 10.22 lakh
- Minimum investment: Rs 5,000
- Minimum SIP: Rs 1,000
- Launch Date: 27 July 2005
- Assets: Rs 1,169 crore (as on 30 September 2021)
- Expansion Ratio: 2.34% (as on 30 September 2021)
