A ₹10,000 monthly systematic investment plan (SIP) in Kotak Contra Fund since its launch in July 2013 would have grown to ₹1.34 crore by June 2025, based on fund house data. Over the same period, the scheme has also outperformed its benchmark, the Nifty 500 TRI, over three-year, five-year, and since-inception timeframes.
Its corpus recently crossed ₹4,500 crore in assets under management (AUM).
A lump sum investment of ₹10,000 at inception would have grown to ₹74,825.7 as of July 25, 2025, representing over seven times the initial value. Since inception, the fund has delivered an annualised return of 17.36%.
On a rolling returns basis, it has generated positive returns in all five-, seven-, and ten-year periods in its history.
Contra funds follow an investment approach that runs counter to prevailing market sentiment, seeking undervalued companies or sectors currently out of favour but with potential for recovery. The Kotak Contra Fund applies this strategy with a value bias and a strong fundamental overlay, targeting businesses with visible earnings potential or scope for improvement in fundamentals where valuations are attractive relative to historical levels.
The scheme is managed by Shibani Sircar Kurian and has a Sharpe ratio of 1.36, indicating the returns generated in relation to the risk taken. While market cap allocation is flexible, the portfolio at the end of June 2025 held around 60% in large-cap stocks, and a little over 18.5% each in mid- and small-cap stocks.
As of June 2025, sector positioning showed overweight exposure to financial services, healthcare, consumer discretionary, and technology, with underweight positions in metals and media.
Market analysts caution that contrarian strategies can diverge from prevailing trends, leading to short-term underperformance. Investors typically need to align such strategies with their investment horizon and risk tolerance.
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First Published: Aug 13, 2025 3:00 PM IST