Contra Funds

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What are Contra Funds?

Contra Funds are a type of equity mutual fund that follow a contrarian investment strategy. This means they invest against prevailing market trends — for example, buying undervalued stocks in sectors currently out of favor. The goal is to capitalize on future market corrections when these undervalued stocks bounce back in value.

Why Choose DeepPriya for Contra Funds?

  • Contrarian Opportunities: Seeks opportunities where others see risk, aiming to buy low and sell high.
  • Ideal for Patient Investors: Suitable for long-term investors with belief in value-based turnaround stories.
  • Unconventional Exposure: Provides exposure to sectors and stocks overlooked by mainstream market sentiment.

FAQs for Contra Funds

Contra Funds are better suited for investors with a high-risk appetite and a long-term horizon (5+ years). They require patience and faith in the contrarian approach.

They can be relatively high risk because they often invest in out-of-favor sectors or companies. However, this also opens the door for higher returns if those bets pay off.

Types of Contra Funds

Benefits

  • Invests in stocks that are temporarily out of favor, offering high potential for recovery.
  • Capitalizes on market inefficiencies by purchasing undervalued stocks.
  • Offers long-term growth potential with a contrarian investment approach.
  • Can provide substantial returns when the market realizes the true value of these stocks.
  • Managed by experienced fund managers who focus on undervalued sectors.
  • Attractive for investors with a higher risk tolerance, seeking unique opportunities.