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!
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.