Fund Radar: Chase winners, bet on laggards or stay chill?

We tested three investing styles. One came out way ahead. When it comes to investing, people usually fall into one of three buckets. There are the chasers, who are always after the latest star performer, driven by what’s done well recently. Then there are the contrarians, or ‘bravehearts’, who bet on the beaten down, hoping for a turnaround. And, of course, there are the laid-back types who simply park their money in broad, diversified funds and, well, do nothing. So, who actually ends up ahead in this race?  Let’s dig in. The strategy face-off We tested the three strategies with an initial Rs 10 lakh invested for 20 years: Strategy 1 (Momentum play): Invest equal amounts in the previous year’s three best-performing sectors every year. Strategy 2 (Contrarian approach): Invest equally in the previous year’s three worst-performing sectors every year. Strategy 3 (Laid-back approach): Stay invested in an average flexi-cap fund throughout the years. The results? Had you chosen strategy 1, your money today would be valued at Rs 70.5 lakh. Taking the co