Contra Mutual Funds are the contrarian style of investing, this kind of investment option offers superlative returns, but this comes with high risks. This mutual fund invests against the existing market performance and the stocks. The fund manager purchases the stocks that are at the lower value and hold it for long-term or up to when the demand increases. The contra funds are the long-term kind of funds and not short-term investment options they profit you higher returns on long term. Investors who want to invest in Contra funds, they should have patience as these funds invest in under performing stocks, so one must wait till it grows or starts performing good, so investor has to wait for long to earn higher returns. This investment option comes with multiple features like, patience, risk tolerance, time, etc.
What is the Contra Mutual Funds?
These are the Mutual Funds that invest in underperforming companies and wait for the best time allowing the stocks to give best performance. As they have great scope of massive potential growth.
What are the features of Contra mutual funds?
These are the long-term it time taking schemes as they are invested in underperforming companies, they need time to develop and offer best returns.
Under section 80C, IT Act. Investing in Contra mutual funds offers several tax benefits. (Terms Apply).
Investment in Contra mutual funds is surrounded by many risk factors, these schemes are suitable for those who can bare risk not for those who cannot handle risks.
About the Fund Manager:
Before, investing in Contra Mutual Funds, investor must inquire about the fund manager. As the decision of the manager plays major role when it comes to mutual fund investment. Any mistake or with any wrong decision may affect badly on the investors.
What are the Advantages of Contra mutual funds?
- High Returns
- Low investment price
- No entry or exit investment fees (Terms apply)