The Difference Between XIRR and CAGR
Understand the critical differences between XIRR and CAGR, their applications, limitations, and how to calculate them. Make smarter investment decisions with the right return metric.
Contra funds and value funds can be viewed as the underdogs of the mutual fund category. Both contra funds and value funds follow a unique investment strategy that may or may not be ideal for every investor.
This blog will compare contra funds and value funds to know which fund could be a better investment option.
A contra fund falls under the equity funds category. It primarily invests in underperforming stocks with the assumption that these stocks will be profitable and lucrative in the future.
The stocks may be underperforming due to short term concerns or fluctuations in the market or investor ideology. But in general, these stocks may have strong leadership and business fundamentals.
This contrarian style of investing is the reason for the name, “Contra fund”. However, the investment strategy does not involve picking random underperforming stocks.
The fund manager analyzes the market to identify fundamentally strong companies with a solid future potential even though they are currently underperforming.
A value fund falls under the equity fund catego
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