Now Reading: Bandhan Mutual Fund to Launch Contra Fund on August 10
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Bandhan Mutual Fund to Launch Contra Fund on August 10
Bandhan Mutual Fund will open subscriptions for its new Bandhan Contra Fund on August 10, with the offer closing on August 24. The open-ended equity scheme will invest in fundamentally strong companies…
The Story in Brief
Bandhan Mutual Fund will open subscriptions for its new Bandhan Contra Fund on August 10, with the offer closing on August 24. The open-ended equity scheme will invest in fundamentally strong companies that have fallen out of favour because of sector pressures, cyclical downturns, economic uncertainty or weak market sentiment.
The fund will seek gains from improving business performance, earnings recovery and a possible re-rating in share prices, Bandhan AMC said. CEO Vishal Kapoor said wider valuation gaps between sectors had created selective contrarian opportunities. The AMC said the scheme suits long-term investors who can remain invested through market cycles and want an approach distinct from traditional growth and value strategies.
The Indian Opinion
Contrarian funds can sound attractive when investors hear phrases such as “overlooked gems” or “temporary setbacks”. Neither phrase guarantees a recovery. A cheap company may stay cheap, while a sound business can face deeper industry or economic problems. Investors should examine the scheme’s portfolio, costs, risk level and performance against its benchmark after launch. The useful test will be whether earnings improve across several reporting periods, not whether a few holdings rebound quickly.
Source: businesstoday.in
This story was synthesised by AI from the source linked above.
