Mutual funds investment: Stock market rally over? Why MF investors are betting big on contra funds explained here

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₹8,637 crore in June, making it the highest net inflow in three months. According to Mukesh Kochar, National Head-Wealth, AUM Capital, in the current market scenario when the market is near its peak, investors are trying to find contarion bets more suitable as the risk-reward is more favorable there. These stocks comprise either the beaten-up sector or the stock that has not run up much comparably and is available at a reasonable valuation with long-term positive outlooks.

There may be some short-term challenges for these sectors but the long-term outlook is promising. This is the reason why investors are betting big on these funds. Investors have become value conscious for sure and that is promoting them to look at this strategy.

As in this kind of euphoric market you always try to protect your downside. “It is difficult for anyone to predict the market and if anybody is doing that, it would be the biggest mistake. The only thing one has to follow is the proper asset allocation and discipline of investing.

Opting for a contra strategy in this kind of market is a good option and in our sense, it works well. Investors are attracted to these strategies due to cheaper valuation comparable at the same time fund managers are also looking to buy reasonably valued stock," said Mukesh Kochar. SIP contributions stood at ₹14,734 crore.

Small-cap equity mutual fund schemes witnessed maximum inflows in June 2023, followed by value/contra funds and mid-cap funds, according to AMFI data. This is the fourth consecutive month of SIP flows coming in above the ₹14,000 crore mark. Investors continued their maximum allocation to small-cap funds at ₹5,472 crore, followed by value/contra funds ( ₹2,239 crore) and mid-cap funds ( ₹1,749