Pune, February 06, 2025.
The world of equity investing is full of opportunities and risks. For investors looking to diversify their portfolios and pursue growth across various market segments, the Bajaj Finserv Multi Cap Fund can be a suitable option. The New Fund Offer (NFO) period of this fund is from Thursday, 6th February, 2025 to Thursday, 20th February, 2025. This new equity fund by Bajaj Finserv AMC adapts the contrarian investment strategy.
In this article, we will explore what contrarian investing is, what multi cap funds are, and how the Bajaj Finserv Multi Cap Fund leverages contrarian investing to help investors create a diversified portfolio with the potential for superior long-term returns.
What is contrarian investing?
Contrarian investing is an investment strategy where investors go against the prevailing market sentiment. While most investors tend to follow the crowd, buying when the market is bullish and selling during downturns, contrarian investors make decisions that are opposite to popular opinion. In other words, contrarian investors often buy when others are selling and sell when others are buying.
This strategy relies on the belief that markets tend to overreact to news – whether it’s positive or negative – and create buying opportunities when stocks are undervalued (during market corrections) or selling opportunities when stocks are overvalued (during market booms). A successful contrarian investor aims to profit by capitalizing on the market’s overreaction and the eventual return of rational pricing
