Contra Mutual Funds

[{"selector":"#anim-21e1a8f4-c725-4749-ab41-8f0d331b3731","keyframes":{"opacity":[0,1]},"delay":0,"duration":400,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-1e26bf0e-b90f-4671-a025-397996dfb216","keyframes":{"transform":["translate3d(0px, 208.42304%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":400,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}]

What are Contra Funds?

[{"selector":"#anim-3d7c99c9-d686-44eb-af28-d28d4e42badf","keyframes":{"opacity":[0,1]},"delay":0,"duration":800,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-58c5a090-f50b-49a8-b7a8-ff229df493e0","keyframes":{"transform":["translate3d(0px, 200.30857%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":800,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-aadf018b-20b4-475b-9fb8-67cd54f950ef","keyframes":{"opacity":[0,1]},"delay":0,"duration":400,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-cc111089-b91b-4bd6-bcf1-b01a769a6eea","keyframes":{"transform":["translate3d(0px, 604.07386%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":400,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Contra funds invest in stocks that are currently undervalued or out-of-favor with the market.

The Logic Behind It

[{"selector":"#anim-c042cb5f-5725-42a2-a1dc-f3ae8e885992","keyframes":{"opacity":[0,1]},"delay":0,"duration":400,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-f3d1e5ea-d33d-4d75-b274-3b50eb2a46a7","keyframes":{"transform":["translate3d(0px, 604.07386%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":400,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-840764d7-1e6c-4869-add0-a417af18bc66","keyframes":{"opacity":[0,1]},"delay":0,"duration":800,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-38ce3346-2780-42b0-85ed-d667d046cc9b","keyframes":{"transform":["translate3d(0px, 200.30857%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":800,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Idea is to buy quality stocks at ‘bargain’ prices when everyone else is overlooking them.

An Example:

[{"selector":"#anim-05fb1af5-07bf-426f-85a1-21564156a080","keyframes":{"opacity":[0,1]},"delay":0,"duration":400,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-ec3b148b-4c78-42c5-9076-841f5d489d7b","keyframes":{"transform":["translate3d(0px, 734.07383%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":400,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-37a8163f-8aae-4a6b-896b-469173aeb703","keyframes":{"opacity":[0,1]},"delay":0,"duration":800,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-e0f1a967-dd9e-4d6e-96cf-79d3d51c73e4","keyframes":{"transform":["translate3d(0px, 161.20531%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":800,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Imagine a good Indian company’s stock dropping due to a temporary setback. Contra funds might see this as a buying opportunity.

Potential Payoff

[{"selector":"#anim-bad4cf6b-2594-4913-9860-b1118665e693","keyframes":{"opacity":[0,1]},"delay":0,"duration":400,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-7d5e3caa-f64e-4db3-86d4-74dd6c5cdf7d","keyframes":{"transform":["translate3d(0px, 734.07383%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":400,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-f7b597a0-ceca-43d0-a2c6-b90c2bccd970","keyframes":{"opacity":[0,1]},"delay":0,"duration":800,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-c6b73d1b-2452-4a40-a643-1b2aa8403c28","keyframes":{"transform":["translate3d(0px, 200.23393%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":800,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] When the market ‘corrects’ and starts valuing those undervalued stocks, contra funds aim for big returns.

SBI Contra Fund

[{"selector":"#anim-504f5d5d-7041-451d-8156-8413327ec8d2","keyframes":{"opacity":[0,1]},"delay":0,"duration":400,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-f4d332b7-af3e-4ad6-9311-90a90a93f5c7","keyframes":{"transform":["translate3d(0px, 757.40724%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":400,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-f527013e-81b0-4d49-9111-377476b6d1b0","keyframes":{"opacity":[0,1]},"delay":0,"duration":800,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-ea258a7d-ce9a-4750-87be-73ca82780033","keyframes":{"transform":["translate3d(0px, 161.20531%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":800,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Category: Equity Risk: Very High 1Y Returns: 47.5% Rating: 5 Fund Size (in Cr): ₹23,572

Kotak India EQ Contra Fund

[{"selector":"#anim-22cd263e-697d-4d2c-93b2-2d0c6d65c0f4","keyframes":{"opacity":[0,1]},"delay":0,"duration":400,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-df2d04d8-9fb9-4a79-bc2d-84e23edd18e5","keyframes":{"transform":["translate3d(0px, 413.47909%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":400,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-a4d50eda-dd50-4425-a63e-bf7a3c7a81cb","keyframes":{"opacity":[0,1]},"delay":0,"duration":800,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-e109141b-be8b-4c63-ba85-6167f6c6b66f","keyframes":{"transform":["translate3d(0px, 162.05276%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":800,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Category: Equity Risk: Very High 1Y Returns: 45.9% Rating: 4 Fund Size (in Cr): ₹2,450

Invesco India Contra Fund

[{"selector":"#anim-30dab77f-c510-4a73-91a2-5515b626459c","keyframes":{"opacity":[0,1]},"delay":0,"duration":400,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-6f9dcf4d-ab79-4722-b651-08a4f07c5ea7","keyframes":{"transform":["translate3d(0px, 436.42988%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":400,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-735d54ca-01f5-41b9-aa99-cca1e482f7d2","keyframes":{"opacity":[0,1]},"delay":0,"duration":800,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-532c634d-2f6a-4920-a111-13c79c024ef9","keyframes":{"transform":["translate3d(0px, 166.29004%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":800,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Category: Equity Risk: Very High 1Y Returns: 37.9% Rating: 3 Fund Size (in Cr): ₹13,344

[{"selector":"#anim-cd79f12c-3660-4cfa-8601-04fa549853b1 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(1.473904067802291%, 0%) scale(1.5)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":1200,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] [{"selector":"#anim-ebe862d7-55a7-42b5-ac3b-8dc4c7951b53","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-fd9425dc-1920-43d1-b507-3f3cf1b2e2dd","keyframes":{"transform":["translate3d(0px, 280.44461%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Always research & consult experts before investing.