Value Mutual Funds

What are Value Funds

 

A value fund is a mutual fund that follows the concept of investing in stocks which are undervalued. The reasons for being ‘undervalued’ is due to temporary factors, thus, having a chance of providing high returns as compared to peers once valuation is at par.

Their main focus is to identify the stocks that are available at a discounted price or may be at a price that is not reflecting their true worth.

Top 5 Value Mutual Funds

Aditya Birla SL Pure Value Fund (G)

Returns 3Y:  12.43%

L&T India Value Fund (G)- Direct Plan

Return 3Y: 15.98%

JM Value Fund (G) - Direct Plan

 

Return 3Y: 19.88%

Tata Equity P/E Fund (G) - Direct Fund

Mutual Fund 5 Star

Return 3Y:  19.37%

IDFC Sterling Value Fund (G) - Direct

Return 3Y: 17.88%

  • Past Performance Is No Guarantee of Future Results

Benefits of Investing in Value Funds

  • Value funds add diversity to your portfolio. It is considered a good strategy fit as they lend maximum amount of diversity as most of the funds are likely to be growth oriented.
  • Value investing funds offer a high degree of safety as most of the investment are done in undervalued stocks. So, chance of loss is quite minimized.
  • They are less vulnerable as investment because they do not invest in stocks having much expectations.
  • Value funds have the capability of generating high and sustained cash flow over a longer term.
  • It offers a better risk and reward profile in a volatile or overvalued market.

Why Invest in Value Funds with Gulaq

To begin with, the biggest challenge of value mutual funds is estimating their fair value which is both an art and science. For an avid investor, the investment seems to be easy, but when we talk about the new investor, the financial road turns out to be tedious. Therefore, taking care of this, Gulaq got a way-out by making an easy process of doing an investment by anyone. Few taps of sign-up and Alas! You are investment ready. Don’t forget to check your KYC for FREE. Also, the investor can filter her requirements according to the goals, returns, risks, and horizons. That simple!

How Value Funds Work

Value funds work on the principles of value investing. In this case, the fund manager tries to pick those companies which are not evaluated on their fair value and available at discount price. All the stocks are based on value-based vs growth based. Growth stocks are those where the investor is willing to pay an additional or high premium because the company is growing at a faster rate. Value based fund grows in the longer term. Hence, A value fund manager buys undervalued stocks that have a potential for appreciation, but usually ignored by day to day investor. To pick those value stocks, the fund manager makes certain strategies to pick up those stocks which are trading below due to some inherent market inefficiency. To determine a fair value for the company stocks, fund managers evaluate future cash flows of the company which is quite challenging. But due to their vast experience and a long track record out of performance in their domain, they can provide good returns to their customers in the long run.

Who Should Invest in Value Funds

 

Value investing is considered as one of the most successful equity investment strategies. They tend to carry risk, but they are outweighed by their advantages. Any investor who is looking for long term investment say a period of more than 7 to 8 years then the value funds are great investments. Although volatility will be high, but most of the occasion returns outclass their respective peers. It is always advised by the experts to have 25% of your portfolio in value fund. If an investor has patience, then in some cases it provides exceptional returns to their respective investment.

Frequently Asked Questions

 

Value Funds lookin period ?

Tax on Value Funds?

Invest in Value Funds & Grow Your Money

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Attention Investor
Investments in Mutual fund & Securities Market are subject to market risks. Please read the scheme information and other related documents carefully before investing. Past performance is not indicative of future returns. Please consider your specific investment requirements before choosing a fund or designing a portfolio that suits your needs. Terms and conditions of the website are applicable.

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ESTEE COMMODITIES PVT. LTD (hereinafter referred to as “ECPL”) , 7th Floor, Block 1, Vatika Business Park, Sohna Road, Sector 49, Gurugram, Haryana 122001.
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Registration Detail 
Estee Advisors Pvt Limited (hereinafter referred to as “EAPL”) is registered with the Securities and Exchange Board of India as Stock Broker with registration number INZ000170130 and registered with BSE Star with code 24408 for mutual fund transaction facility.ECPL and EAPL are group companies and EAPL is authorized to provide its services to the Users on the Gulaq website/app under a license agreement with ECPL

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Mutual fund investments are subject to market risks, read all scheme documents carefully.

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