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From the Editor

Anybody who had invested in Tata Consultancy Services in November 2007 would have more than tripled his money in the past three years. But few investors did.

Anybody who had invested in Tata Consultancy Services in November 2007 would have more than tripled his money in the past three years. But few investors did.

The tech sector had fallen out of favour because the massive inflow of FII investments had pushed the dollar to less than Rs 39 and depressed the earnings of software companies. The focus, instead, was on the infrastructure sector and everybody was trying to get a piece of the action.

Our cover story this month is on how going against the herd can help you earn higher returns. While the tech sector has outperformed the broader market in the past three years, infrastructure stocks are yet to regain their 2007 levels. Some of these shares are trading at 70-80% below their peak values. Even blue-chip shares, such as Bhel and L&T, are in the red.

Read the cover story to know how you can use the contrarian approach in diverse areas of personal finance to your benefit.

It might prove useful when you read our analysis of the second quarter results of the corporate sector (pg 50). While the earnings have been above expectations, some companies have not had a good quarter. Does it make these investments bad? Certainly not. Don't junk a company just because it is going through a bad phase. In fact, it might be just the right time to pick a good bargain at a beaten down price. Remember, you need to think contrarian.

Also, don't miss this month's story in the series on investor cheating (pg 70). Rajender Khosla, a senior citizen, was fraudulently sold five insurance policies by a clutch of bank executives, who obtained his personal details and blank cheques on the pretext of opening fixed deposits in his name.

MONEY TODAY helped him in his fight against the fraudsters. We are happy to note that the insurance company has now agreed to refund his money after an investigation revealed that he had been cheated.

Chaitanya Kalbag