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Well, If you ask me, the answer would be "NO". I believe as a good investor, the next thing that comes up in your mind is - "Why?" If you did think of it, then kudos to you. If you did not, then my friend its time to fire up those brain cells. No matter, who gives any investment advise, it is not a good idea to believe without asking "Why?"
Reason 1: Underperformance
As you may have noticed in the paragraph on the performance of the Contra Funds, you can see that they have underperformed the Regular Equity Diversified Funds consistently over the past 5 years.
Reason 2: Shrinking Fund Corpus
When these Contra Funds were introduced almost a decade ago, they were selling like hot cakes. People invested in them heavily, but seeing their poor performance, most investors have sold their holdings in these funds. Some of these funds had AUM of over 1000 Crores but have come down significantly. The AUM as of November 2011 are:
a. UTI Contra fund - 165 Crores (Was nearly 1200 Crores in 2006)
b. ING Contra Fund - 8 Crores
c. Religare Contra Fund - 66 Crores
d. SBI Magnum Contra Fund - 2900 Crores
e. Kotak Contra fund - 61 Crores (Was nearly 350 Crores in 2006)
f. TATA Contra fund - 97 Crores (Was nearly 200 Crores in 2007)
g. L & T Contra fund - 8 Crores
Note: For the rest of the funds I could not find the historic AUM. But, based on the data for the rest of the funds, you can see that the AUM Corpus has shrunk significantly in these funds and suggests lesser investor confidence
Reason 3: Not much Contrarian Investment Approach
Bottom-line: The Stock Market is volatile and a contrarian investment approach may produce better returns. But, unfortunately the Contra funds available in the Indian MF Market right now are not so Contra and haven't performed well either. So, it is better to give them a pass and choose top performing Equity Diversified Mutual Funds that have outperformed other classes of MF's on a regular basis.
What else can I help you with?
When would it be a good idea to invest your money instead of putting it in a savings account?
It would be a good idea to invest your money instead of putting it in a savings account when you are looking for potentially higher returns over a longer period of time and are willing to take on some level of risk.
Is it best to borrow from mutual funds to pay off credit card debt?
No, it's not a good idea. Your mutual funds should be earning you a good interest. Consolidate your credit card debt and take out a "Line of Credit" as the interest rate is much lower.
Is it a good idea to buy stock right now?
Yes, buying stock in economic downturn is a great idea. Right now, lots of stocks are cheap and will be raising in the future. This will allow you to invest your money safely.
How can an 18 year old start a business with no money or credit?
first you must find a good business idea, then you can find a person who has money to invest in your business.
What are the advantages of owners funds?
There is no interest There is no deadline to when the money has to be paid back <3
Why might one invest in mutual funds?
One might invest in mutual funds to get good returns for their money. The whole idea is to make a profit and mutual funds enable one to gamble on investments.
Is it a good idea to invest in ford?
no
Is it a good idea to invest on condominium hotel?
Good is a judgement and you are the judge.
Is it a good idea to purchase a junk bond considering the current economy?
Purchasing one can be good for you depending on your financial situation. But if you don't have the funds to invest right now you may want to hold off until things pick up.
What is the safest and best way to invest in the stock market online?
I think savings bonds are good. Mutual funds is a good idea also.... it's monitored by a fund manager that invests money into stocks and such. The only bad part is you have to pay a fee.
When would it be a good idea to invest your money instead of putting it in a savings account?
It would be a good idea to invest your money instead of putting it in a savings account when you are looking for potentially higher returns over a longer period of time and are willing to take on some level of risk.
Is it a good idea to use funds from your provident fund to put a deposit down on your first house?
No. The funds in your PF Account is for retirement and not to fund your regular expenses
What is VoIP small business, and should I get it?
Definitely it will be a good idea, but in long term. You need to invest considerable amount as initial cost to setup the VOIP. Also it depends on the business you going to invest on.
Would it be a good idea to invest in Cleveland real estate?
Cleveland has recently been in the news but it wasn't about investing in real estate. To begin, one could watch the YouTube video 'Real Estate Investment Advice' to get some basic factors to consider about making a wise investment. Beginners Invest and Business Week also are resources to consult in order to determine if it's a good idea to invest in Cleveland real estate.
What is window dressing in final accounts?
Performance reports & a list of the holdings in a mutual funds are usually sent to clients every quarter.Another variation of window dressing is investing in stocks that don't meet the style of the mutual fund. for eg., a precious metals funds might invest in stocks that are in a hot sector at a time, disguising the funds's holdings, so clients really have no idea what they are paying for..
Should you get the numark idj3 or invest in a numark ns7?
You should invest in the ns7, or, if you can't afford that, the new ns6. The IDJ3 is a good idea, but all the iPod based systems are sluggish and offer limited cue and loop abilities.
What words come from the Latin root contra?
Some words that come from the Latin root "contra" include contrary, contradict, and contravene. These words all involve the idea of something being against or opposite to something else.
