What is a contra investment?
Definition: A contra fund is defined by its against-the-wind kind of investing style. The manager of a contra fund bets against the prevailing market trends by buying assets that are either under-performing or depressed at that point in time.
What does Contra mean in stocks?
A contra market is one that moves against the trend of the broader market and tends to have a negative correlation with it, or at least a relatively weak correlation. Investors utilize contra markets to hedge, make contrarian investment plays, or to diversify holdings.
Is it safe to invest in contra funds?
Risk profile Contra funds are known to be highly risky because the investment is based on the future expectation of the stocks performing, which may take many years. Value funds too fall in the category of high-risk investments.
What are the contra funds?
Contra funds are a type of equity fund where the fund manager bets against the prevailing Market trends by buying assets that are either depressed or under-performing at that point in time.
Who should invest in Contra fund?
Most investors investing in contra funds are aggressive ones or those willing to bear higher levels of risk. Your investment horizon should be at least five years in order to mitigate market volatility and risks to a greater extent.
Which Contra Fund is best?
Top 10 Contra Mutual Funds
| Fund Name | Category | 1Y Returns |
|---|---|---|
| Kotak Classic Contra | Equity | 56.9% |
| Invesco India Contra Fund | Equity | 53.5% |
| SBI Contra Fund | Equity | 86.1% |
| View All Top 10 Contra Mutual Funds |
Should I buy contra fund?
Investor Allocation The Contrafund is considered an outstanding core holding for long-term, growth-oriented investment portfolios. Due to the fund’s exposure to domestic large-cap growth stocks, it should not make up the majority of an investor’s portfolio.
When should you invest in contra funds?
A Contra Fund does not chase the momentum of the market or bet on the current favorite. On the contrary, it bets on the opposite – the underdog. Hence, you should consider investing in a Contra Mutual Fund if you have a reasonable risk tolerance, an investment horizon of 5+ years, and tons of patience.
What is the meaning of ELSS?
equity-linked savings scheme
What is a ELSS fund?
ELSS or Equity Linked Savings Schemes are Mutual fund investment schemes that help you save income tax. That’s why they are also known as tax-saving funds. The Income Tax Act, under section 80c, allows taxpayers to invest up to INR 1.5 lakh in specific securities and claim it as a deduction from their taxable income.
Is SBI Contra Fund good?
This fund has continuously performed better than similar funds. You can consider investing in this fund. Contra Fund : Fund has 97.11% investment in indian stocks of which 42.04% is in large cap stocks, 14.22% is in mid cap stocks, 33.37% in small cap stocks.
How is SBI Contra Fund?
SBI Contra Fund aims to provide investors with opportunities for long-term capital appreciation through an active management of investments following a contrarian investment strategy. SBI Contra Fund has the flexibility to invest upto 35% in other equities and/or debt or money market instruments.
Is Axis Bluechip fund ELSS?
Axis Long Term Equity Fund is an open ended equity linked saving scheme with a statutory lock in of 3 years and tax benefit. *As per the present tax laws, eligible investors (individual/HUF) are entitled to deduction from their gross income of the amount invested in Equity Linked Saving Scheme (ELSS) up to Rs.
Is ELSS better than PPF?
However, under Section 80C of the Income Tax Act, only ₹150,000 in a financial year is deductable. From the table above, you can see that a PPF investment is a relatively safer option. However, PPF offers much lower returns over a longer time horizon than ELSS.
Why is ELSS tax free?
Since ELSS funds are locked-in for three years, there is no possibility of realising short-term capital gains. Therefore, you can realise only long-term capital gains. These gains of up to Rs 1 lakh a year are made tax-free, and any gains above this limit attract a long-term capital gains tax at 10%.
Is ELSS safe investment?
ELSS fund has the shortest lock-in period among all tax-saving investment options. The units are free for redemption after 3 years. This leads some investors to think that the time horizon for an ELSS fund is just 3 years, but that’s not true, and one shouldn’t invest in ELSS if the investment horizon is only 3 years.
How much tax can be saved by ELSS?
An equity-linked savings scheme or ELSS is a tax-saving investment under Section 80C of the Income Tax Act, 1961. By investing in ELSS, you can claim a tax rebate of up to Rs 1,50,000 a year and save up to Rs 46,800 a year in taxes. An ELSS is the only kind of mutual fund eligible for tax benefits under Section 80C.
Can we continue ELSS after 3 years?
All ELSS funds have a lock-in period of three years. Once the lock-in period ends for a particular instalment/lump sum investment, the ELSS becomes an open-ended equity-oriented investment scheme with full liquidity.
Can we invest lumpsum in ELSS?
ELSS, or Equity Linked Savings Scheme, is one of the most sought-after Mutual Fund schemes in the Indian financial market. Investment in ELSS can be made in 2 different ways; one can invest a lump sum amount all at once or follow a systematic investment plan (SIP) to grow their investment portfolio.