New Delhi, Feb. 4 -- Sumedha Saini, Ghaziabad, Uttar Pradesh.

Contra mutual funds are a type of equity mutual fund that follows a contrarian investment strategy. This means that the fund manager invests in stocks that are currently out of favour in the market but have the potential for significant appreciation in the long term. The idea is to buy low and sell high, capitalising on market inefficiencies and investor sentiment. The Securities and Exchange Board of India (SEBI) has classified mutual funds into five broad categories to make investments simpler and more transparent. Contra mutual funds fall under the equity-oriented schemes category, specifically under the sub-category of contra funds.

The contrarian investment strategy is b...