Mishi Mangal
4 posts
Oct 05, 2024
1:57 AM
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Hello fellow investors,
I wanted to get a discussion going on Contra Mutual Funds Contra Mutual Funds and whether they are a good option in today’s market. For those unfamiliar, contra mutual funds follow a contrarian investment strategy. They invest in stocks or sectors that are currently out of favor with the market but are expected to recover over time. The basic idea is to buy low when the market is pessimistic and sell high once the market recognizes the value.
Why Consider Contra Mutual Funds
Potential for High Returns: Since these funds invest in undervalued or underperforming companies, there’s potential for high gains if the market rebounds.
Diversification: They provide exposure to sectors or stocks that traditional equity funds might avoid, which can help balance a portfolio.
Long-Term Focus: These funds require patience, as it may take time for these undervalued companies to recover, but the returns can be rewarding for long-term investors.
Top Contra Mutual Funds in India
SBI Contra Fund
Invesco India Contra Fund
Questions for the Community
Has anyone here invested in contra mutual funds? How have your returns been compared to regular equity funds?
Do you think the contrarian approach is still effective in today’s volatile market?
How do contra funds perform in a bear market or during times of economic uncertainty?
I’m considering adding SBI Contra Fund to my portfolio, but I’m curious to hear others’ experiences with these funds before making a decision. Any insights or advice would be greatly appreciated!
Looking forward to hearing your thoughts!
Last Edited by Mishi Mangal on Oct 05, 2024 1:59 AM
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