Udayan Mukherjee, Consulting Editor at CNBC TV18, explains how contrarian investing can give good returns.
Taking a contrarian approach to investing and looking at sectors that are currently out of favour in the market, while focusing on those that are heavy in the portfolio of investors can be helpful at times.
The most important reason for being contrarian is that most industries or sectors are cyclical in nature.
They enjoy good times and witness bad times, so long-term investors should keep an eye on sectors and stocks where there is pessimism in the market and low ownership.
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