Can betting on last year's losers lead to higher stock market returns?



A study by DSP Mutual Fund highlights the benefits of a contrarian investment strategy, showing that buying the previous year’s losing index delivers stronger returns than chasing recent winners. From October 2009 to June 2025, contrarian investors earned an average return of 15.9%, compared with 12.5% for performance chasers. Over the same period, the Nifty 500 delivered 13% returns.

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