Model returns on contrarian value investing strategies that capitalize on market mispricings and cyclical turnarounds.
Invests against prevailing market consensus by identifying fundamentally strong companies currently trading at discounted valuations.
₹6,00,000
₹7,10,457
₹13,10,457
Year-by-year accumulation showing total principal invested and returns generated.
| Year | Invested Amount | Estimated Returns | Total Value |
|---|---|---|---|
| Year 1 | ₹60,000 | +₹4,750 | ₹64,750 |
| Year 2 | ₹1,20,000 | +₹19,171 | ₹1,39,171 |
| Year 3 | ₹1,80,000 | +₹44,705 | ₹2,24,705 |
| Year 4 | ₹2,40,000 | +₹83,014 | ₹3,23,014 |
| Year 5 | ₹3,00,000 | +₹1,36,004 | ₹4,36,004 |
| Year 6 | ₹3,60,000 | +₹2,05,868 | ₹5,65,868 |
| Year 7 | ₹4,20,000 | +₹2,95,126 | ₹7,15,126 |
| Year 8 | ₹4,80,000 | +₹4,06,675 | ₹8,86,675 |
| Year 9 | ₹5,40,000 | +₹5,43,843 | ₹10,83,843 |
| Year 10 | ₹6,00,000 | +₹7,10,457 | ₹13,10,457 |
When market participants chase overhyped momentum stocks, valuations frequently become disconnected from fundamentals. Contra funds avoid herd mentality, acquiring sound businesses at a fraction of their peak value and waiting patiently for mean reversion.
A Contra fund deliberately takes contrarian bets by buying sectors and companies that are currently out of market favor or facing temporary cyclical headwinds, but have strong underlying balance sheets and long-term turnaround potential.