Contrarian bets in market peaks: Midcap stocks that have turned contra fund favourites

Contra mutual fund schemes look for stocks that are either beaten up or have not run up much comparably and are available at reasonable valuation but having high potential to show a turnaround. Three mutual fund schemes - Invesco India Contra, Kotak India EQ Contra and SBI Contra Fund - now predominantly follow the contra strategy. The contra strategy is associated with long-term investing. These funds select the stocks when the economy runs into a rough phase and many of the sectors underperform. This, in turn, could help the funds to deliver better returns when the economy turns around. It is worth looking at their recent additions to their portfolio, given in the highly volatile peaking markets with strong fund flows, whereas most of the stocks are traded at rich valuations. Here are the top midcap stocks that were added by contra funds in their portfolio over the last six months. Data as of September 30, 2023. [Source: ACEMF]

The Federal Bank
Scheme that newly added the stock: SBI Contra Fund

Voltas
Scheme that newly added the stock: Kotak India EQ Contra Fund

Also see: Hot auto stocks added by mutual funds

Coforge
Scheme that newly added the stock: SBI Contra Fund

FSN E-Commerce Ventures
Scheme that newly added the stock: SBI Contra Fund

Also see: 15 smallcap gems that category III AIFs love to hold

Vinati Organics
Scheme that newly added the stock: Invesco India Contra Fund

Petronet LNG
Scheme that newly added the stock: SBI Contra Fund

Sun TV Network
Scheme that newly added the stock: Kotak India EQ Contra Fund

Also see: MF industry added these stocks afresh in September. Do you own any?

Cummins India
Scheme that newly added the stock: SBI Contra Fund

Also see: Check out these MF favourite sectors that are undergoing business upcycle

Bandhan Bank
Scheme that newly added the stock: Kotak India EQ Contra Fund

Info Edge (India)
Scheme that newly added the stock: SBI Contra Fund

Also see: Hot stocks added by top smallcap funds in September

Fortis Healthcare
Scheme that newly added the stock: Kotak India EQ Contra Fund

Macrotech Developers
Scheme that newly added the stock: Invesco India Contra Fund

Shriram Finance
Scheme that newly added the stock: Kotak India EQ Contra Fund

Also see: Time to rebalance your portfolio? Check out these aggressive hybrid funds that provide stability and high growth