Date:18/01/2006 URL: http://www.thehindubusinessline.com/2006/01/18/stories/2006011802461500.htm

Back Chola MF launches contra fund

Our Bureau

Mr Sashi Krishnan (right), Chief Executive, Chola Mutual Fund, and Mr Tridib Pathak, Chief Investment Officer, at a press conference in Mumbai on Tuesday. - Shashi Ashiwal

Mumbai , Jan. 17

CHOLA Mutual Fund, promoted by Cholamandalam Investment & Finance Co Ltd, on Tuesday launched its open-ended `Chola Contra Fund', which will invest in stocks of companies that have been overlooked by the market.

The company will adopt `contrarian investment strategy', which refers to buying into fundamentally sound companies that have under-performed in the recent past, Mr Sashi Krishnan, Chief Executive, Chola Mutual Fund, said at a news conference here.

He said the fund would build a diversified portfolio of such stocks with medium to long-term potential.

Mr Tridib Pathak, Chief Investment Officer, Cholamandalam AMC, said a study conducted by the fund house had found that 69 per cent of the stocks that under-performed during the 1999-2000 bull phase, had given handsome returns two years later. "Opportunities exist in bull phase too," he said, explaining the philosophy behind the Chola Contra Fund. The initial offer for subscription opened today and closes on February 14.