Contra mutual funds are gaining investors’ interest as they offer the potential for high returns in a market that is otherwise volatile. These funds invest in stocks that are out of favour with the market and focus on taking contrarian investment bets – bets on high quality stocks which have turned out of favour, cyclically. With indices at highs, concerns around the broader market peaking out and valuations are steering investors towards bargain hunting.
The contra and value funds have done well post-March 2020 and continue to do well today also.
