Investors probably need to have more patience with pure play contrarion funds in terms of a longer time horizon, according to Taher Badshah, chief investment officer at Invesco Mutual Fund.
Such funds, however, could also provide higher returns than other multi-cap strategies, while serving as a good hedge against market crashes, Badshah said on BloombergQuint’s weekly series, The Mutual Fund Show.
A contra fund does not invest in popular sectors or themes of the day; it aims to go against the market and target out-of-favour sectors or themes in the hope of investing in them at lower prices, he explained.
Here are edited excerpts from the conversation.
Do you believe in contrarian investing?
