However, there are still managers out there who genuinely ignore what their competitors are doing and construct a completely unbiased portfolio.
Below are some contrarian funds that investors might like to consider:
Graham Toone, manager of Margetts St Johns Realistic Core
"There’s a huge pressure on fund managers to pick stocks that make up a big part of their benchmark, which is why there are so many quasi-trackers out there."
"Some fund houses put a great deal of emphasis on short-term performance. However, there are a few quality managers out there who are brave enough to disregard their peer group and even underperform them for a set period."
"Neil Woodford’s two income funds immediately spring to mind. Not so long ago everyone was talking about the fact he’d underperformed, but the funds’ performance this year vindicates his high-conviction strategy."
According to FE Analytics, Invesco Perpetual High Income is the best-performing fund in the IMA UK Equity Income sector over a 10-year period, with returns of 176.1 per cent.
Although the fund underperformed its FTSE All Share benchmark in 2009 and 2010, it has fared far better than the majority of its competitors during this year’s market volatility.
"Many of the best contrarian funds tend to be value-orientated," Toone continued. "In this bracket, I’d have to go for Francis Brooke’s Trojan Income fund. He’s another one that has no problem underperforming the market in the short-term."
As well as being among the three best-performing UK Equity Income funds over three and five years, Trojan Income is the least volatile fund in its entire sector.
Danny Cox, head of advice at Hargreaves Lansdown
"Fund managers who have strong convictions or stick to their principles tend to be contrarian by default, rather than seek to be contrarian. Woodford's Invesco Perpetual High Income fund is a good example.""He came under a lot of pressure in the late 90s for not joining the tech boom and ultimately his value and income-orientated strategy worked."
"Alistair Mundy's Investec UK Special Situations is another contrarian fund I like."
According to FE Analytics, Mundy's £452.7m portfolio holds Signet Jewelers, Travis Perkins and Grafton Group in its top-10.
David Coombs, manager of Rathbone Multi Asset Strategic Growth
"Markets are inefficient, which is why opportunities exist, but the risk of value traps is ever-present. Therefore, we invest in funds with strong investment processes, run by talented managers." "Japan continues to be led by small cap stocks, but GLG Japan Core Alpha remains entrenched in large cap value, with a bias in financials. Once the market refocuses on large caps, the fund should perform well."
Only one Japan fund – Neptune Japan Opportunities – has returned more than Stephen Harker's vehicle over a five-year period.
"I also like Henderson European Select Opportunities," Coombs added. "Manager John Bennett is a 'mean-reversionist' in terms of price and profitability. He plays sector trends and sometimes stock specifics, particularly where there’s been significant change. But one caveat is that mean reversion takes time."
Bennett's fund has only marginally outperformed its Europe ex UK sector over three- and five-year periods.
Neil Shillito, director of SG Wealth Management
"A fund we are currently using is the Freehold Income Trust, which is under the management of Alpha Real Capital." "The investment objective is to provide a secure and stable investment primarily through acquiring freehold ground rents which offer an attractive income stream and capital growth prospects."
"The fund has a target yield of 4.25 per cent after charges and current yield is 4.58 per cent. The trust has an unbroken track record of positive returns over 18 years and has consistently outperformed cash, gilts and inflation."
"Not only is property an excellent diversifier, but also, interestingly, it is uncorrelated to mainstream investments and other property funds."
According to FE Analytics data, the Freehold Income Trust has returned 97.36 per cent in the last decade. The average IMA Property fund has returned 37.28 per cent in this time, with substantially more volatility.
The fund has a total expense ratio (TER) of 1.63 per cent and a minimum investment of £5,000.
Liked this story? Click here to tell us more.