The Hindu Business Line : Tata Mutual Fund unveils contrarian investment plan

TATA MF today announced the launch of a fund named Tata Contra Fund that will allocate at least 70 per cent of its assets using the contrarian investment approach.

A release quoted Mr Ved Prakash Chaturvedi, MD, as saying that contrarian investing focuses on identifying stocks that are "fundamentally strong but relatively undervalued due to short-term non-recurrent reasons."

With equity market at an all-time high, contrarian investing can help investors by diversifying their portfolio and realising long-term value.

The NFO will close for initial subscription on October 25.

Contrarian opportunities in the current market may arise from sectors such as oil refining and marketing, pharmaceuticals, and fertilisers, where short-term negatives overshadow long-term fundamentals or where market has not been able to recognise changing industry fundamentals or value long-term potential as in the case of FMCG, tractors, and telecom.

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