In mutual funds, mainly two strategies are used: growth investing and value investing. Growth investing focuses on the high-potential companies, and value investing identifies the stocks that are currently undervalued and trading below their intrinsic worth.
Contra fund takes this concept a step further. They go against prevailing market sentiment, investing in stocks that are currently out of favour but have strong long-term potential. This makes contra funds a powerful tool for investors who believe in value-oriented investing with a contrarian approach.
What is a contra fund?
A contra fund is a type of equity mutual fund that follows a contrarian investment strategy. Instead of chasing trending stocks, these funds invest in:
● Undervalued or ignored sectors
● Temporarily underperforming companies
● Stocks with turnaround potential
Top contra funds which follow a value-oriented strategy
Below are some of the best contra mutual funds in India, along with their latest available returns.
1. SBI Contra Fund
This is one of the oldest and most popular contra funds in India, known for its strong value-based portfolio.
SBI Contra Fund generates long-term capital appreciation by actively managing investments based on a contrarian strategy. The fund invests a minimum 65% of its portfolio in stocks which align with a contrarian investment theme.
The fund details are as follows:
● NAV (As on 21 Apr 2026): ₹376
● 1-year returns: -2.42%
● 3-year returns: 16.31%
● 5-year returns: 18.73%
● AUM (31 March 2026): ₹43,753.7Cr
● Expense ratio:0.75%
2. Kotak Contra Fund
Kotak Contra Fund is an equity-oriented scheme that follows a contrarian investment approach. It focuses on fundamentally strong but undervalued companies across large, mid, and small-cap segments.
The fund details of Kotak Contra Fund are given below:
● NAV (As on 22 Apr 2026): ₹173.7
● 1-year returns: 8.03%
● 3-year returns: 21.76%
● 5-year returns: 18.88%
● AUM (31 March 2026): ₹4,679 Cr
● Expense ratio: 0.58%
3. Invesco India contra fund
This fund is known for its aggressive value approach and high equity exposure. Its objective is to generate capital appreciation using contrarian investing with primarily equity and equity-related instruments. The fund invests in fundamentally sound companies which are available at attractive valuations / undervalued or in a turnaround phase.
The fund details of the Invesco India contra fund are given below:
● NAV (As on 28 Apr 2026): ₹151
● 1-year returns: 0.82%
● 3-year returns: 19.10%
● 5-year returns: 16.41%
● AUM (31 March 2026): ₹17,664 Cr
● Expense ratio: 0.5%
The Invesco India Contra Fund has arround 99% equity exposure. This fund is suitable for high-risk investors.
4. Nippon India Value Fund
Nippon India Value Fund was launched in mid 1995 by Nippon India Mutual Fund. This mutual fund aims to generate returns or capital appreciation by actively investing in equity or equity-related securities primarily through value stocks.
The fund details of the Nippon India Value Fund are given below:
● NAV (As on 29 Apr 2026): ₹225
● 1-year returns: 3.95%
● 3-year returns: 21.12%
● 5-year returns: 17.99%
● AUM: ₹7,992.61 Cr
● Expense ratio:1.84%
5. ICICI Prudential Value Fund
This fund was launched in Jan 2013 by ICICI Mutual Funds. It aims to generate returns through a combination of capital appreciation and dividend income by investing primarily in a well-diversified portfolio of value stocks. The fund details are as follows:
● NAV (As on 29 Apr 2026): ₹511
● 1-year returns: 2.13%
● 3-year returns: 17.79%
● 5-year returns: 18.54%
● AUM : ₹55,851 Cr
● Expense ratio: 0.99%
Conclusion
Value-oriented contrarian funds use a value investment strategy for generating returns. These funds seek to provide long-term returns by going against the market and focusing on undervalued opportunities.
Before choosing the best contra mutual fund, it is important to carefully analyse the scheme and compare the returns of various contra funds.
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