8 Contrarian Investing Strategies | 31% Return from "Portfolio of Losers" | Contra Mutual Funds

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👉 Report on Contra Mutual Funds by Fisdom Research
www.fisdom.com/research/unvei...
Contrarian investing is often the road less travelled, which aims to challenge the norm by venturing against the prevailing crowd sentiment. If done well, then it offers higher returns, lower volatility and extensive diversification benefits which is what we'll study in this video through 8 different contrarian investing strategies and techniques
This includes powerful investing concepts like the "portfolio of losers" which in an Indian context has offered a CAGR of 31% over the past 5 years. We also look at tracking shifts in analyst consensus, sectors that have been overlooked, high dividend yield strategies, contra mutual funds and a few more techniques. Net net, adopting a contrarian investing strategy can unlock a world of opportunities and I hope this video helps you get on that path
👉 Download the Fisdom app:
fisdom.onelink.me/VCH6/Shanka...
👉 Video Chapters:
00:00 Contrarian Investing in India
02:09 1. Portfolio of Losers
05:16 2. Conviction Change
06:19 3. Ignored Sectors
08:17 4. New Investing Avenues
09:23 5. Contra Mutual Funds
11:04 6. High Dividend Yield Strategy
12:14 7. Point of Maximum Pessimism
13:17 8. Metric Based Screening
14:31 Shankar's Viewpoint
👉 Useful Reading Resources:
‣ Investment Fables by Aswath Damodaran (book link): amzn.to/45bvZ5W
‣ Motilal Oswal Securities research note on Contrarian Investing: www.motilaloswalgroup.com/Ana...
‣ Article on Intelligent, Fanatic Iconoclasts by Sanjay Bakshi: www.dropbox.com/s/pb60w77txg3...
‣ Article on Contrarian Investing: www.allangray.com.au/document...
‣ Benefits of Contrarian Investing: apinstitutional.invesco.com/d...
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#contrarian #contramutualfunds #contrarianinvesting
Disclaimer: I am not a SEBI registered investment advisor or research analyst. I am not registered with PFRDA or IRDA either. The content posted on this platform is purely for educational purposes and none of it constitutes investing or trading advice. Viewers should do their own research and diligence before investing or acting on the information presented. Some of the links I have posted in the video, the description, the comments and other related resources might be affiliate links

[@vpatangey]

Thanks! Hello Shankar sir, I have been following and watching your videos for couple of months now. Your videos are a great source of knowledge and its changing my entire investment outlook and strategy. This comment is for all the videos. Even though there are many channels/videos on similar topics, but for simplicity and ease of understanding, I have to come back here. Great work and kudos to you.

[@shankarnath]

So nice of you, Vinod ji. Thank you very much for your kind appreciation and for this wonderful gesture. Honestly, this entire initiative I started almost 3 years back (2 years for ET Money & 1 year on my own channel) has vastly improved the way I invest my capital. My expectations are clear, I invest as a portfolio & not specific schemes/stocks, the behavioural side of me has improved etc. More importantly, I'm glad to be playing a small part in your financial journey aswell

[@sky301289]

Thumbnail never disappoints!

[@summerbreeze5115]

Never ever😂😂😂

[@shankarnath]

Thanks!

[@vishvajeetmoyon3235]

Shankar sir and prashant sir are the best in making thumbnails..... Since prashant sir cover geopolitics it becomes easy to add sarcasm and humor but his thumbnails are just genius since he create thumbnails of pure talent

[@niteshrdubey]

Please let your thumbnail guy know he rocks. I really like your channel but your thumbnails are on another level. Whoever that person is deserves a raise.

[@shankarnath]

Hi Nitesh, pls use the "Super Thanks" button to help him with the raise & for expressing your appreciation of my thumbnail creator. I assure you, the amount will go to him.

[@niteshrdubey]

​@@shankarnathI did what I could ❤

[@shankarnath]

Thank you very much 🙌

[@plazameranam]

Thanks for the Contra Thumnail..dont think any of this generation will recognize the video game :) but it was nostalgic...

[@shankarnath]

Most welcome

[@rationalmind3567]

I was above to say the same.

[@drkeval]

I was unknowingly thinking in contrarian way but was not getting courage to implement it...thank you for giving knowledge that it is a proven method

[@shankarnath]

Glad it was helpful and informative! Wishing you the best

[@focus15624]

There is a youtuber who teaches us this strategy everyday. 🎉❤ Good video from you.

[@shankarnath]

Glad you enjoyed it! Thanks

[@user-gk9of4bj4q]

Was not knowing this term. However not sure if I follwed this for ITC..... Brought when everyone were making fun of it, but as ITC had good fundamentals and I had faith in it, i am enjoying good profit. Next action is to be a contrarian and find such stocks. Thank you sir once again for a new learning 😊

[@shankarnath]

Most welcome

[@paraschugh3058]

Glad I found your channel, amazing explanations. Thanks, Sir.

[@shankarnath]

Glad you like them!

[@meerkatfrolic]

Yet another killer video! Excellent subject selection. Instantly applicable and useful. The contra MFs epitomise it to a good extent. Such contrarian videos make the channel stand apart from the crowd. Safe,sound & rewarding. All the Best!

[@shankarnath]

Thank you very much for the kind words. Much appreciated! 🙌

[@thatguywithm]

Thumbnail Standards 📈

[@shankarnath]

Thanks

[@lakshminarasimhanpb506]

Wonderful video Shankar bhaiya ❤ thanks

[@kingNM01]

By far one of the best Indian KZbin channel for investing

[@shankarnath]

Thank you. Glad you like my content & videos

[@dhamodharanmanickam1373]

Most creative channel in KZbin. Top notch quality.

[@shankarnath]

Wow, thanks! I appreciate that

[@lakshminarasimhanpb506]

Thinking of going for the SBI Contra fund and keep it for 5 years 😊

[@dbzchannelbypj6861]

Please make this kind of contrarian videos every year it was really knowledgeable and a different viewpoint of analysing too which I didn't thought of

[@shankarnath]

Thanks for the suggestion

[@dhruvgala983]

Most underrated financial doc

[@mohammadfiroz5085]

Yes Mr.Sankar...great contents as usual good learning... Thank you very much..

[@shankarnath]

So nice of you. Most welcome

[@imrranmohammed4336]

Sir har baar apka video ka intezaar rahta hai q k har baar apke video se stock market ke baare me kuch Naya seekhne ko milta hai

[@shankarnath]

Bahut dhanyawad apka 🙌

[@udayprabhu705]

Sir .. being a contrarian requires strong courage of conviction especially when the stock gives low and negative returns over many months or even years .. a judicious balance is required between following the herd and being contrarian in order to maintain returns

[@udayprabhu705]

@shubhendusingh1991 I tried with individual stocks like heg and itc with mixed results.. got better returns in mutual fund route mainly sbi contra direct fund .. now looking at specialty chemicals for the same

[@yashkumarsharma7766]

आपकी जानकारी अलग और अच्छी है अगर आप हिंदी में भी इसे बताएंगे तो आप बहुत बड़े वर्ग तक पहुँच पाएंगे सोचिएगा जरूर

[@shankarnath]

धन्यवाद ... समय और संसाधन की कमी के कारण, मैं अंग्रेजी माध्यम पर ध्यान केंद्रित कर रहा हूं .. जब मेरी स्थिति सुधरेगी तो मैं हिंदी कंटेंट पर भी काम करूंगा

[@parthaaec07]

Wonderful thought-provoking strategies. Yes, I played a lot of Contra game too !

[@shankarnath]

Glad you liked it and found it informative

[@sushil2kashyap]

बहुत बहुत धन्यवाद!! 🙏🙏

[@shankarnath]

मुझे खुशी है कि आपको यह content पसंद आया

[@ParthPatel-fy9cd]

I am interested this strategy to study more. Anyway u have tested previous one ? I would be interested to learn more.

[@Anbu-Ini]

Thanks for the amazing content Shankar sir..

[@shankarnath]

So nice of you. Glad you liked it!

[@arjunps6776]

Many thanks for this video Shankar. I've been an investor in a value fund for last 13 which is same as a contra fund and I can say that results are quite satisfactory. On another note, I've been searching all your videos and found that you've not made any content so far on international investing for Indian investors and the best way to do it (correct me if you've already made one). It would be great if you made one as many investors are now looking for geographical diversification.

[@shankarnath]

Most welcome. Thanks for the suggestion; I'll have a video on international investing for Indian once the RBI window opens up for good measure

[@elitepunch1498]

Brilliant content as always Shankar 👏👏

[@shankarnath]

Thank you very much!

[@surendra6421]

Great content and insights 🎉 Thank you Shankar for a wonderful vdo 👏

[@shankarnath]

Thank you very much! I'm glad you found the video useful and informative

[@Samudragupta_]

Bhai apke Thumbnails bahut awesome hai. 🔥 Content toh awesome hai hi.

[@shankarnath]

Bahut bahut dhanyawad 🙌

[@commanderbharatkumarunerca7293]

Very Apt and insightful..

[@shankarnath]

Thanks

[@LearnValue]

Contrarion in small cap makes huge wealth but need conviction...

[@mumohammad]

Best graphic till date. Epic stuff. Aapke GD ko increment de do

[@shankarnath]

Hi Umair, pls use the "Super Thanks" button to help him with the increment & for expressing your appreciation of my thumbnail creator. I assure you, the amount will go to him.

[@niteshrdubey]

Thanks

[@shankarnath]

Thank you very much Nitesh for this nice gesture and gratuity. I'm happy you loved the thumbnail and also the content. The loser's portfolio is something interesting and convincing oneself to invest in that bunch is quite a mental battle although my data shows a 91% CAGR

[@nabeelyahiya]

Excellent as always 👌👍

[@shankarnath]

Thank you! Cheers! 🙌

[@TanajiRaundhal-zi6ci]

Great Content Shankar Sir very unique way you explained things. Could you please explain how companies positive/negative results impact on share price, does this mean promoters buy or sell the shares before announce the results, Thanks

[@shankarnath]

Thank you for the appreciation 🙌 and suggestion

[@MrBharani1989]

Hi Shankar thanks for making this video. Is it possible to make complete video on “Investment Fables”

[@shankarnath]

Thanks for the suggestion

[@SRavichandranIndia]

Good strategy... may be we can invest in various available index in nifty based on this contrarian approach or simply keep SIP in contra mutual funds as suggested..... Thank you.... 🙏

[@shankarnath]

Most welcome, glad you like it

[@ManishSingh-zi7fn]

Hello Shankar Sir, many thanks for educating us. If I may request- please share details about lump-sum investment in mutual funds

[@shankarnath]

Thank you so much for the appreciation & suggestion

[@hunterswarup7779]

Wonderful Shankar Sir... I'm seeing some good returns in motilal amc funds . Are they doing anything differ just like quant Amc ? Throw some light on it sir.. Wonderful needful video as always ❤❤❤❤

[@shankarnath]

Thank you. Apologies, I haven't analysed MOAMC or Quant AMC funds. Having said this, I'm sure there will be periods when one scheme's portfolio will do better than the other as sectors, stocks & investing styles all go through cycles

[@AmrishKelkar]

Top notch work as always!

[@shankarnath]

Wow, thanks! I'm happy you liked this video and its content. Appreciate this wonderful gesture from your end 🙌

[@22jayyu]

Cool. Really intetresting. Justifies the statement, 'Leaders don;t flock together'. Well presented as usual with words of caution as always. I do get a feeling that as AUMs grow from small to medium to large levels, not all are able to deliver actual results. Did you find anything from your research on the play of AUMs of the fund and it sperformance over short-Medium-Long term horizons? A nice video presntation on this (if you think it is worthwhile) may help to enhance the awareness.

[@shankarnath]

Thanks for the appreciation & suggestion. No, I haven't come across any research that shows causality between AUM and fund performance

[@yashagar4443]

Awesome

[@shankarnath]

Thanks!

[@hafeezrahman9255]

Vera level Thumbnail❤

[@shankarnath]

Thank you

[@ranjithartist4757]

super , this video is enough life time

[@shankarnath]

Thanks

[@akhaleefa]

Your knowledge sharing is amazing. Please make a portfolio of 10 stocks which in future could grow 24% cagr so that in ten years the pf becomes 10x and in 20 years 100x and in 30 years 1000x. Please try with your vast knowledge and skills for your subscribers. Thanks.

[@shankarnath]

Thank you for the suggestion

[@snehilkamal1919]

Great Video Sir!😊

[@shankarnath]

Thank you!

[@deepeshkumar100]

nice one!

[@shankarnath]

Thanks!

[@ramyasri6093]

Sir...as usual great research.. But none of them seem buy & hold kind of techniques..i mean these kind of portfolios require constant review when compared to investing in the stocks which have good fundamentals in long term. Please correct me if i am wrong

[@shankarnath]

Thank you. Yes ofcourse, every component of an equity portfolio requires periodic review whether it's a stock or mutual fund .. as these reviews help reduce portfolio risk & identify opportunities.

[@sudamdas]

Great

[@shankarnath]

Thanks

[@kirankumar-mz6or]

Good one 👍

[@shankarnath]

Thanks

[@nandakumarganesan5894]

Shankar sir what is your recommendation on asset allocation for contra investing?

[@shankarnath]

Hi. Sorry, I haven't come across anything in particular on this; allow me to circle back if I find something.

[@VinayKumar-ns1zy]

Hello Mr.Shankar, I usually watch your videos very carefully because everything you say is very carefully said ( in my opinion). In your opinion, is it a good idea to have a contra fund in one's portfolio ? It is a good diversifier, agreed, but to what extent can it hurt or make our entire portfolio returns ?

[@shankarnath]

Hello. I'm sorry, I have no real opinion on contra funds. I prefer using contrarian strategies on stocks where I can take a call on what seems to be going against the crowd consensus.

[@RomeoVinay]

I like Contra

[@DrSD-dk6qt]

Hello sir, Provide really wonderful contents to us. Thank you so much. Could you please educate us "Cyclical and non cyclical sectors" It would be really helpfull. Thanks. Have a good time!!

[@shankarnath]

Thank you for the appreciation and for your suggestion. I recently made a video on sectors, pls watch at : kzbin.info/www/bejne/o4W7nJylacl4Zrs

[@DrSD-dk6qt]

@@shankarnath Thanks for sending the link. It was excellent content. You have nicely distilled the core content.

[@shankarnath]

@@DrSD-dk6qt Thanks, glad you liked it

[@lifezg00d]

According to you what should be the ideal rotation or exit strategy for individual stocks in portfolio of losers?

[@shankarnath]

I haven't tested it myself as I don't have the requisite software but an annual rebalancing should be tried out to see if it makes numerical sense.

[@rajashekarreddy4912]

Any stocks in your radar meets this criteria.. Plz mention few

[@shankarnath]

I featured a list of 35 current-day loser stocks (compiled on 8th Aug 2023) in the video itself. Pls have a look, thanks!

[@aasingh7027]

Pls also include screener to use to identify such stock, it would be great help, thanks

[@shankarnath]

Hello, I believe you are referring to the 1st method (portfolio of losers). Unfortunately, a standard screener doesn't allow this level of filtering. I have to pull data in an excel sheet and run formulas on that to arrive at the list of 35 losers (and same was done in reverse fo 35 winners)

[@musicmadchandan2014]

Sir can you please bring an analysis of energy sector?

[@shankarnath]

Thanks for the suggestion

[@sohelranasarkar4607]

Pranam Sir 🙏 💐 I am Dr. S. Rana (Assistant Professor ). I have been following you with last couple of days. It's such a great knowledge you are sharing sir. Thank you so much. Sir could you allow me to know how a no nothing investor can get 22-23% CAGR for long term like 20 years? What would be the strategy? Please teach us simply so that we can teach that to others.

[@shankarnath]

Most welcome, Dr. Rana .. I'm glad you are finding my videos useful and informative. I personally don't have a track record of achieving 22-23% so it won't be wise for me to suggest anything. However, many SIPs that were started 7-8 years ago are averaging 16% - which in my view, is adequate and forms a part of my core portfolio. I do keep a satellite portfolio where I experiment with a lot of the stocks/investing strategies that I talk about in my videos but it's still quite young (2 years) to make any kind of judgment on what works and doesn't.

[@sohelranasarkar4607]

@@shankarnath Sir 💐🙏 Getting very honest reply from you, a great achievement to me. Please suggeste me what would be the ratio to invest in Mutual fund to achieve 16% CAGR. Is it okey to invest like this - 50% in nifty 50 direct Mutual Fund (MF) 15% ELSS MF 15% Flexi cap MF 10% small cap MF 10% Specific segment related MF Thank you so much sir 💐😍🙏

[@biswas7]

Who creates these thumbnails ? Every time so creative.

[@shankarnath]

I create them

[@sarangpan1]

No screener sir?

[@dharmendrasaini7364]

Sir could you please tell us how to create this short list these stocks in screener ? 🙏

[@shankarnath]

Hello. I used a combination of screener and excel sheet to make this list of 35 winners and 35 losers. Steps: 1. In screener, I filtered stocks with market cap > 1000 and also added columns with 7 year return and 5 year return 2. I extracted this information on an excel sheet and back calculated what the return would be between the 7th and 6th year (for 2 years) using simple excel formula 3. I then sorted this list for the worst performers (to get loser portfolio) and best performers (for winners portfolio) That's it. Took about 10 mins to do .. but not complicated. Ofcourse I should mention (as I did in the video) that dividends are not factored as screener doesn't given total returns, it only gives price returns

[@TheAnhsirkamar]

After soic most of other funda youtubers i felt redundant here is one original guy... For every Rajamouli there is a prashant neel/Lokesh Kanagarajan

[@mallikarjunh9297]

Awesome thumbnail

[@shankarnath]

Thanks!

[@dwarrior7546]

Source for getting the low performance stocks for a particular period?

[@shankarnath]

I used screener.in for this video, maybe there are other tools like that

[@dharam2016]

Good video . Worth watching thank u

[@shankarnath]

Glad you liked it

[@dharam2016]

@shankarnath i really liked it. I like to buy good companies whn mrkts dont like it n there is not oerator or so called volume game. I started huying ITC last yr from 180 till 230 n sold at 340. Latest i bot bajfinance at 5700 and dixon 2900 both wr in sell zone hut good companies . U r doing a great work bhai . Pls keep it up. N keep educating thanks

[@divyanshugoel134]

I watched your gold video and it is very informative. But I have a question related to SGB: If we keep the SGB till maturity i.e. for 8years and want to sell it to RBI then can we keep it for more than 8years? This question arises because suppose the Gold prices are low due to some temporary reasons at selling dates when RBI calculates the prices and I don't want to sell it at that time and want to hold for for 2-3 months more to get better returns. So, is it possible? Or it is mandatory to sell it after 8years got completed?

[@shankarnath]

Thanks. The SGB has a maturity of 8 years and per current rules, the principal & interest will be paid back. Pls refer to questions 21, 22 & 23 here : www.rbi.org.in/commonperson/English/Scripts/FAQs.aspx?Id=1658

[@divyanshugoel134]

@@shankarnath Thanks for the reply. In that case, SGB is a bad investment compared to Gold ETF as we can't sell the SGB when it is high and if gold prices are low we have to forcefully sell it. Because of this reason only, I have not bought them. Whats you view on it? And if SGB is better than ETF then how?

[@shankarnath]

I don't look at products in isolation. Instead I look at what my portfolio needs. For example - if it needs a gold diversifier for the next 7 to 10 years then I would go with an SGB. Else for short term, I look at ETFs. This portfolio approach has worked well for me and I'm more comfortable with this rather than picking and choosing specific financial products.

[@Vishwas997]

Do you think we should be investing in the Russian or Srilankan economy , similar to What the guy did with Peru ?

[@shankarnath]

Sorry, I have no opinion on this as I haven't studied those two markets

[@Vishwas997]

@@shankarnath I think the contrary strategy works when you have the conviction in the business. I believe the Russian economy will prosper in the near future but I don't have the same opinion on the Sri lankan .

[@adityabodhi1086]

Hi Over a period of time, I have accumulated some amount in 5 ELSS, now planning to come out of those and invest in equity schemes but the one lakh limit is stopping me so thinking if I can invest in index funds of respective fund house. Is this a good idea.

[@dheerajkukal8475]

Great Content , as always. Sir , what i have to do to earn having a lunch with you 😊. And I am serious. 😊

[@shankarnath]

So nice of you. Thank you!

[@rahulk455]

My Question, 40% decline relative to what? 52 Week high?

[@rakeshvankar9658]

So sir is it risky to invest in index fund? Will there be index fund bubble? Plz let us know your view

[@shankarnath]

Apologies, I have no idea & information on the index fund bubble. I'll certainly circle back if I find something worthwhile

[@rakeshvankar9658]

Ok sir thanks

[@shashiDodderi]

I am just curious to know if this works and why all mutual funds don't follow this method?

[@shankarnath]

Imagine a mutual fund saying : "Dear investors, we will invest your money in the 35 worst performing stocks of the past year" .. very unlikely, although my instinctive examination of that sub-set yielded a 91% CAGR.

[@deepakkamath5267]

Shankar - How do I get in touch with u?

[@shankarnath]

I'm at [e-mail]

[@BeNOone902]

Gratitude.:-)

[@shankarnath]

Thanks

[@girishbonde]

Nailing the Thumbnail 😅

[@shankarnath]

Thanks

[@vamsikrishna24]

The thumbnail looks very much like u!!!

[@shankarnath]

Yes, my twin brother -- "sHUNKar nath" :)

[@dhruvkadam99]

Contrarian Investing is basically buy on dips😂😂.... But its been marketed so differently 😅

[@Vaidyanathan_K]

Very fine - nothing but Think Different

[@trader77775]

How to rebalance

[@DhirajSingh-sc5br]

The name itself is very negative... It expects someone to loose so that I can win. I would rather stay with all growing and I also grow rather than only I grow. Anyways Kudos to the content ❤

[@TheCuriousCurator-Hindi]

You are in love with generative AI

[@MULTIRAGE456]

This has nothing to do with "contra" investing. The broader small index has gone up in a vertical line. Anyone with small and midcap portfolio of random stocks would have made same returns

[@kuberchaurasiya]

04:10 Comparing these loser stocks performance with Nifty is wrong, these should be compared with Nifty Midcap Index as well, since most of these belong there.

[@patelmukeshb]

u r also contrarian u tuber 😂

[@prakhargupta9999]

There are two things which stands out in every video 1. Content, content and content 2. Thumbnail 🫡

[@shankarnath]

Thank you

[@MuraliKatta-jc7ir]

Thanks

[@shankarnath]

Thank you very much, Murali. I'm happy you are finding videos on my channel useful and informative. This is a little moment here as yours is the 100th Super Thanks I have received. So truly super thankful for this 🙏