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

A study by DSP Mutual Fund reveals a contrarian investment strategy. It suggests that investing in the previous year's losing index yields higher returns. This outperforms chasing recent winners in the stock market. Between October 2009 and June 2025, contrarian investors earned 15.9%. Performance chasers earned 12.5% during the same period. Investing in Nifty 500 gave 13% returns.