A contrarian is one who attempts to profit by investing in a manner that differs from the conventional wisdom, when the consensus opinion appears to be wrong. Contra Investing works on the premise that mob like behavior among investors can lead to exploitable mispricing in securities markets.

Contrarian Investing is all about picking up stocks or sectors or commodities, which are not the flavor of the season. Typically, a contrarian investor would start by looking at all avenues / asset classes that have underperformed. A detailed study will follow to explore various positive triggers that can drive up these asset classes.

They leverage on the fact that every asset class has a market cycle and hopping onto the right cycle at the right time will provide the much needed upside.

It is not easy to be a contrarian in the market. It is very important for a contrarian to hold immense conviction and believe in his philosophy – sometimes, the payback comes only over the long haul, it could be an agonizing wait until then.

The contrarian investor need not always blindly act in counter point to the current market trend. He however almost always bets against the common wisdom, hoping to make a killing.

We at Right Horizons follow the contrarian style of investing to the ‘T’, it would enable one to build substantial wealth over the long haul, it would however, not be similar to what the next person is doing, which is in fact the essence of contrarian investing. We believe that every asset class has it’s own cycle and hopping onto the cycle on the first sign of trend reversal will be key to leverage completely on the uptrend.

Considering the fact that we provide a variety of assets – Mutual funds, insurance, bonds, real estate, structured products, managed futures, structured realty products, direct equity – it becomes easier to provide a one-stop-shop.

Also, we have a set of analysts who track each of these asset classes and identify the right opportunity which enables us to optimize on returns time and again.

Asset Allocation Investment

We all know the fact that one should not put all the eggs into one basket, and we also know the reason for it. This quote is perfectly applicable for Investment. If you put all your investment in one asset class, you may have to suffer heavy loss if the asset class does not perform well. If we take an example, investors who only invested in equity share market in 2008 suffered huge losses because of recession. But at the same time, the customer, who had mix of all asset class like gold, debt, equity etc. suffered less.

Asset Allocation involves dividing an investment portfolio among different asset categories, such as stocks, bonds, Real Estate, Gold, and cash. The process of determining which mix of assets to hold in your portfolio is going to be the game changer. The Mix of Asset varies from person to person.