Have You Tried Contra Funds Yet?
Hemant Rustagi Chief Executive Officer, Wiseinvest Pvt Ltd.
Contra funds are essentially diversified funds that adopt a contrarian strategy by investing in stocks and sectors that are out of favour but have the potential to do well over the longer term. The fund manager of a contra fund may find these opportunities either in businesses that are in the turnaround phase or where stock multiples get re-rated. Simply put, the fund manager tries to exploit temporary market inefficiencies.