After a corrective phase of six months in which the indices of their peak from September 2024 fell by 15-25 percent, the markets started to collect steadily last month.
Valuation is still not comfortable in many pockets of the market that select segments with large CAP segments.
American trade rate uncertainties, domestic geopolitical tensions and weak business profit momentum mean that sailing due to uncertain markets will not be easy. In this environment, the adoption of contrary calls can only be worthwhile in the long term if the share choices that seem undervalued are currently able to get strong when markets discover the potential. Even differently on value -based approach can give comfort in the sense that paying too much can be avoided.
In this respect, Invesco India Contra Fund can be a good addition to investment portfolios. The scheme has been around for more than 18 years and has consistently produced above -average returns, apart from the comfortable beating of his benchmark.
Certainly, the approach of the fund is not deeply contradictory. However, Invesco Contra uses a different approach in terms of weight problems to sectors compared to the benchmark and places betting between the best interests on selected extraordinary sectors where markets currently do not seem to show any interest.
The schedule can be considered for the core part of your portfolio, or at least an important part of the satellite part if you have a medium -sized risky appetite. The Systematic Investment Plan (SIP) route can be taken with a horizon of 7-10 years to take exposure to the fund.
Solid outperformer
Invesco India Contra has shown a consistent record over the years. On point-to-point basis, the fund compiled annual return of 17.3 percent, 25.4 percent, 28.4 percent and 17.6 percent, respectively for one, three, five and 10 years respectively periods.
When 5-year-old rolling returns are taken over the period of January 2013-April 2025, the scheme has defeated its benchmark, BSE 500 TRI, 100 percent of the time.
Also, during the aforementioned period, when 5-year-old rolling returns are considered, Invesco India contra 88 percent of the time gave more than 12 percent return, and more than 15 percent almost 64 percent of the time.
A monthly SIP in the fund over a period of 10 years would have achieved 19.2 percent return (Xirr), while systematic investments in the BSE 500 TRI would have earned around 15.6 percent.
All data points relate to the direct plan of the fund.
The fund has an upward ratio of 111.8, indicating that the NAV rises much more than the benchmark during rallies. But more importantly, it has a disadvantage of 87.8 next to it, which suggests that the NAV of the schedule is less than the BSE 500 TRI during corrections. A score of 100 indicates that a fund is performing in line with its benchmark. This is based on data from 2022-May 2025.
Steady movements
Over the years, the fund aims to maintain a somewhat multi-CAP approach to share choice, but the mix has changed steadily. Earlier, in the immediate few years after COVID-19, Invesco Contra had a serious allocation to large caps and more than 70 percent of the portfolio went. That has fallen over the past two years and now the large capweight is less than 60 percent of the portfolio. The exposure to the middle and the small cap has therefore gone more than 35 percent of the portfolio because of its recent interests. This shift has been one of the most important reasons for the fund that performed better in recent years.
The large-cap bias and diffuse companies (sometimes less than 2 percent or even 1 percent sometimes) in the names of the middle and small cap that the portfolio does not take on very hard knock during corrections. In fact, apart from the top three shares, the other shares separately account for less than 4 percent of the portfolio, even with the top 10 of the scheme.
The scheme does not take cash calls from more than 3-4 percent of the portfolio and remains fully invested in the market cycles.
Banks have always been the best possession of the fund. However, the other companies are applied on the basis of value and sometimes contrary calls. So it, the retail trade and the pharmaceutical shares now find their place in the top sector of the fund. In previous years it held cars and FMCG in its best companies when they were not market favorites.
In general, there is a mix of mainly value -picks with some growth tips in the portfolio.
Controller approaches can have periods of underperformance. That is why investors must have a long investment horizon to have a rewarding profit experience.
Published on May 17, 2025
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