Religare Contra Fund

Religare Contra Fund was among the better performing funds in its category but it has slid down. This fund is managed by Vetri Subramaniam. The fund has beaten its peers every year since inception except in 2010 when it fared badly. Existing investors can continue holding its units keeping a close watch on its long term performance.

Where does Religare Contra fund invest your money?

Religare Contra Fund is a contrarian theme based mid cap fund which means most of your money will be invested in stocks of fundamentally strong medium sized companies which are currently out of favour in the market. About 54% of the fund’s money is allocated to stocks of mid size companies, 18% to stocks of small size companies and the remaining to those of large companies. Mid size stocks can give kicker returns as they turn into large cap stocks but this happens not so frequently. 

Suitable for what?
  • Creation of wealth
  • Lifestyle needs
Not suitable for?
  • Child's education
  • Child's marriage
  • Planning for retirement
  • Home Purchase
Our recommendation for fresh investment
Not Recommended
Our recommendation for existing investment.
Recommended
How has Religare Contra Fund performed in the past?

If you had invested Rs 1 lakh when the fund was launched at April 2007, your value of investments would be around Rs 1.53 lakhs. If you had invested Rs 1 lakh three years back it would have become Rs 2.11 lakhs. The performance has been better or similar to other large cap mutual funds. The fund has been giving at around 28.35% every year for those who stayed invested for last 3 years.

Assume you had invested Rs 10,000 every month in Religare Contra Fund through SIP for the past 5 years today you would have around Rs 7.72 lakhs.

How will Religare Contra Fund perform in the future?

Needless to say no one can predict the future of markets. We have firm belief in the future prospects of the Indian economy. If the Indian economy grows at 9% then the leading companies tend to do well. When the companies do well their stock prices follows their performance. So if you expect the economy to grow at 8% then you can expect top performing mutual funds to give you returns in excess of 14%.

Mutual fund schemes that have exposure to mid size companies tend to show results when their bet on few companies comes true. We advise you to avoid too much of star gazing and future prediction. Be reminded that equities are one of the asset classes that have the potential to beat inflation. Your aim for core portfolio should be to beat inflation.

When to review the performance?

Once you invest in the fund do not get into the habit of checking the NAV daily or monthly. Review the performance once a year. Too much attention is not good.

What charges apply?

A onetime fee of Rs 100 is charged on investments over Rs 10, 000 made through distributors. If you are a first time investor in mutual funds an additional Rs 50 is charged to cover KYC expenses. This is deducted from your investment and can be skipped if you buy directly from the mutual fund via their website or offices.

If units are sold within a year an exit load of 1% is deducted from your total returns. No exit load applies for units withdrawn post one year. Expense ratio of Religare Contra Fund is 2.95%. This is charged to recover the fund management company’s expenses on securities’ transactions, commissions, registrar fees, etc. Your mutual fund returns will be total returns less expense ratio.

When to exit?

Withdraw when you see the air is out of the sectors. Do not remove the money when the markets go up or down in the short term. Do not panic. Stick to your goals.

What are the tax implications?

The returns in a mutual fund are absolutely tax free, provided you do not withdraw within 1 year. Religare Contra Fund does not qualify for sec 80C ELSS benefits.

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