What are Contra Mutual Funds
Contra mutual Funds are equity oriented mutual funds whose investment objective is to invest in the shares of the companies or sectors which are under-performing mainly due to the short term concerns.
The fund manager follows the contrarian investment approach i.e. buying shares of the companies whose share prices are depressed due to short term concerns. The demand of these shares is very less as they are usually rejected by other investors
These under-performing stocks are usually available at lower price than their fair value or intrinsic value and are likely to perform well in the long run as market price of a share will always tend to move towards its fair price or intrinsic value creating opportunities for traders to generate superior returns in the long run
Contra mutual fund is out of favor or against-the-wind style of investing. Fund managers select companies which are fundamentally strong but whose true potential is not reflected in its share price. The concept is to buy shares at a price lower than its fundamental price or intrinsic value.
Please note that contra mutual funds may not give superior return in the short term but are ideal for investors who have investment horizon of medium to long term. Also, the reward risk ratio is quite high for investors in the long run.
Rajiv Kapoor
Investment Advisor
9839034761
Contra mutual Funds are equity oriented mutual funds whose investment objective is to invest in the shares of the companies or sectors which are under-performing mainly due to the short term concerns.
The fund manager follows the contrarian investment approach i.e. buying shares of the companies whose share prices are depressed due to short term concerns. The demand of these shares is very less as they are usually rejected by other investors
These under-performing stocks are usually available at lower price than their fair value or intrinsic value and are likely to perform well in the long run as market price of a share will always tend to move towards its fair price or intrinsic value creating opportunities for traders to generate superior returns in the long run
Contra mutual fund is out of favor or against-the-wind style of investing. Fund managers select companies which are fundamentally strong but whose true potential is not reflected in its share price. The concept is to buy shares at a price lower than its fundamental price or intrinsic value.
Please note that contra mutual funds may not give superior return in the short term but are ideal for investors who have investment horizon of medium to long term. Also, the reward risk ratio is quite high for investors in the long run.
Rajiv Kapoor
Investment Advisor
9839034761
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