Value Mutual Funds – Important Aspects
Value Mutual Funds
There are many styles of investing that are adopted by fund managers of different schemes. Taking care of this segment, fund managers are allowed to invest the corpus of the particular scheme efficiently. Contrarian, Growth, and Value investment strategies are the three common investment styles that are being used. Based on these, the funds are called Contra, Growth, and Value Funds, respectively. Let’s elaborate a bit more.
When a fund manager or an investor adopts a certain value investing strategy, she/he (fund manager) looks for stocks that are undervalued & trade for less as compared to their intrinsic value(s). NOTE: There are some companies in the market whose stock price is not the worth. They are essentially more valuable & have a lot of potentials to grow. Although, the intrinsic value of a company is calculated by taking care of its business model, competitive position, management team, financials, etc. But, if the value of the company is less than its intrinsic value, it is considered to have ‘VALUE’. Thus, a Value Fund is an Equity Fund that invests in the company’s stocks having ‘value’.
Who Should Invest?
There are many seasoned investors that swear by a combination of value and growth investment as the best method of generating wealth. Although, finding the right stocks & purchasing them at the appropriate time requires effort & awareness of the market. The majority of investors find the overall process of value stocks overwhelming; thus, such funds are good for these investors.
Factors to be Taken care of Before Investing in Value Mutual Funds:
- Investing in value funds are for long-term investors
- Look for a diversified value fund
- Past performance is crucial to consider
Top 10 Value Funds as per Gulaq Methodology. Here:
- UTI Value Opportunities Fund
- Nippon India Value Fund
- JM Value Fund
- HDFC Capital Builder Value Fund
- IDFC Sterling Value Fund
- L&T India Value Fund
- ICICI Prudential Value Discovery Fund
- Templeton India Value Fund
- Quantum Long Term Equity Value Fund
- Indiabulls Value Discovery Fund
Looking to invest? Hop on to gulaq.com and start investing in direct mutual funds. Furthermore, you can also get in touch: [email protected]q.com or Whatsaap +91-9818894632
*Disclaimer: investment in securities market are subject to market risks, read all the related documents carefully before investing