Are you an investor type that loves a little investment adventure? If so, the contra funds will need to be learned. Contra is the short sort of contrary, where the idea is to invest in shares of undertakings that are currently uncommon and not in favor of the investor. In other words, it is described in its counter-the-wind investment style.
Let’s see more about the Contra Mutual Funds.
The underlying assumption is that once the short-term concerns plaguing it either become irrelevant or are mitigated, the asset will stabilize and come to its real long-term value. The idea is to buy property at a cost lower than its fundamental value in the long run. Investors must take note of the fact that in the short term, contra mutual fund may not perform owing to the sort of resources they invest in. The contra fund can pick up stocks that are out of favor or invest in sectors that are experiencing a slump. A fund that seeks to capitalize on a decrease in commodities by taking up stocks in companies belonging to the sector can be called a contra fund.
What are the mutual funds of the Contra?
Contra funds are a kind of equity fund where, at that point in time, the fund manager bets on present market trends by buying either depressed or underperforming assets. The opposite is an investment strategy in which a strong market watch is maintained by the fund manager to acknowledge those underperforming stocks with great potential for future development. It takes a lot of research and analysis to select a stock in advance that has the ability to develop in the future.
A contra fund is differentiated by its investment style from other funds. A contra fund takes a contrarian view of an asset when it either witnesses exuberant demand from investors or is shunned by them at a particular point in time due to short-term triggers. The asset’s poor performance or outperformance leads to distortion in valuations, which is what a contra fund seeks to capitalize on.
Contra Fund for Invesco India
Invesco India Contra Fund is an Equity – Contra fund was launched on 11 Apr 07. It is a fund with Moderately High risk and has given a CAGR/Annualized return of 12.8% since its launch.
The Scheme’s investment goal is to create capital appreciation by investing in tools linked to equity and equity. The Scheme will attempt to create an appreciation of capital through counter-investment.
Who should be investing in Contra Funds?
Ideally, investors need to look at this fund if they want to diversify their portfolio. It is possible to invest contra funds for a diversification chance. Investors should always remember that these funds may not perform in the brief term, so one who can invest in this fund for a longer period of time, ideally for over five years, should only invest in it. In addition, contra funds are generally riskier than large-cap Equity Funds, so before investing, analyze your risk appetite. In this fund, you must be prepared to bear high-risk as sometimes the call from the fund manager can go totally awry.
How can I invest online in Contra Funds?
Open Lifetime Free Investment Account
Complete your registration and upload documents for the KYC process (PAN, Aadhaar, etc.).
And, you’re willing to invest!