How do Contra Mutual Funds Work?

Contra funds pool money from multiple investors to invest in undervalued stocks with the potential for future growth. Fund managers analyse market trends, company fundamentals, and economic factors to identify opportunities others might overlook.

By focusing on undervalued assets, contra mutual funds aim to provide significant returns when the market corrects its valuation. This strategy requires patience and a strong conviction in the chosen stocks' long-term growth prospects, making contra funds an essential part of a diversified portfolio.