Contra funds are suitable for long-term investors who have a high-risk appetite and a lot of patience. Contra funds invest in stocks that are currently unpopular or ignored by the market and wait for them to increase in value over time. This may take several years, depending on the market cycles and the fund manager’s strategy. Therefore, investors may have to hold their investment in contra funds for at least 5 to 7 years to reap the benefits of this contrarian approach.