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What is difference between contra fund and mid-cap fund?

Updated: 8/18/2019
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A Contra Fund is another type of Equity Mutual fund that has a contrarian view to investment which is supposed to be the opposite of the view that regular MF's take.

Theoretically speaking, a contra fund is one that invests in stocks that are out of favour with investors and are being sold/avoided by them but have the potential to grow in the long term. A regular MF manager will avoid such stocks while the fund manager of a contra fund will go in search of such stocks.

Some of the leading Contra Funds available for us to invest are:

1. ING Contra Fund

2. Kotak Contra Fund

3. L & T Contra Fund

4. SBI Magnum Sector Funds Umbrella - Contra

5. TATA Contra Fund

6. UTI Contra Fund and

7. Religare Contra Fund

Equity Midcap Funds

These are Mutual Funds that invest in companies that fall under the Small & Midcap category. They usually search for small to medium sized companies with good fundamentals and growth potential and invest in them.

Example:

a. DSP Blackrock Small & Midcap Fund

b. HDFC Midcap Opportunities Fund

c. IDFC Premier Equity

d. ICICI Prudential Discovery Fund

e. etc

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Q: What is difference between contra fund and mid-cap fund?
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