Kotak Contra Fund Turns ₹15,000 SIP into ₹50.04 Lakh in 10 Years!

Kotak Contra Fund has made headlines by turning a ₹15,000 monthly SIP into a corpus of ₹50.04 lakh in just 10 years. Launched in July 2013, this mutual fund has delivered strong long-term performance, consistently beating its benchmark, the Nifty 500 TRI.

Let’s break down how this fund achieved such impressive results and what investors should know before considering it.

What is a Contra Fund?

Contra funds follow a unique investment strategy. Instead of following the crowd, they invest in sectors or companies that are currently out of favour but have potential for recovery. The idea is simple: buy undervalued stocks when others aren’t paying attention and hold them until the market recognises their true worth.

Kotak Contra Fund follows this contrarian approach with a "value bias”. It looks for stocks with solid fundamentals and good potential for improvement, especially if they’re trading below their historical value.

How Much Returns Has Kotak Contra Fund Given Investors Since August 1, 2015?

A ₹15,000 SIP started in August 1, 2015, would have grown to around ₹50.04 by June 2025, according to fund house information. That’s the power of long-term investing and compounding.

Even a lump sum investment of ₹10,000 at the fund's launch would be worth ₹74,825.7 as of July 25, 2025, over 7 times the original amount. Since inception, the fund has given an annualised return of 17.36%.

Kotak Contra Fund Performance Highlights

• Consistent Outperformance: The fund has beaten its benchmark across three-year, five-year, and since-inception timeframes.
• Positive Rolling Returns: It has delivered positive returns in all five-, seven-, and ten-year periods so far.
• Sharpe Ratio: With a Sharpe ratio of 1.36, the fund offers strong returns compared to the risk taken.
• AUM Milestone: The fund’s assets under management (AUM) recently crossed ₹4,500 crore.

Portfolio and Sector Focus

As of June 2025, the fund's portfolio included:

• 60% in large-cap stocks
• 18.5% each in mid- and small-cap stocks

It has overweight positions in financial services, healthcare, consumer discretionary, and tech, while being underweight in metals and media.

Who Should Consider an SIP in Kotak Contra Fund?

Contra funds are better suited for investors with a long-term horizon. This is because they can sometimes underperform in the short term as they go against market trends. If you have a demat account, investing in mutual funds like Kotak Contra is simple and can be done online in minutes. Just remember to match your investment with your risk appetite.

Read more: Power of SIP: What Will be the Value of ₹25K SIP Over 25 Years.

Conclusion

Kotak Contra Fund shows the power of disciplined investing with a contrarian twist. A ₹15,000 SIP turning into ₹50 lakh in 10 years is a strong reminder that long-term investing, especially in undervalued opportunities, can deliver significant wealth creation. For patient investors willing to go against the tide, this fund is one of the many paths to financial growth.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.