Contra Fund : These mutual funds invest in stocks and follow a strategy of purchasing and selling in contrast to the prevailing sentiment. The underlying assumption is that herd behavior among investors often makes the maket very costly or very cheap at times.

Suitable For : Investors who have advanced knowledge of macro trends and prefer to take selective bets for higher returns compared to other Equity funds. At the same time, these investors should also be ready for possibility of moderate to high losses in their investments even though overall market is performing better.