Up To 80% Return In 1 Year! Here's All You Need To Know About Value Mutual Funds
Value Funds have gained attention in the current market scenario as they tend to perform well in a recovering economy. Quant Value Fund, the topper in the category, gave 80.94% in the last one year. Watch this video to learn more. The Indian mutual fund industry ended 2023 on a high. For the first time, the industry’s total assets under management (AUM) breached the Rs 50-lakh crore mark. The industry’s AUM first crossed the Rs 10-lakh crore mark way back in May 2014. There are a variety of mutual funds available in the market right now. In this video, we are gonna discuss about Value Mutual Funds. Value funds invest in stocks that are deemed to be undervalued in prices based on fundamental characteristics. They are open-ended equity schemes that follow a value investment strategy. This kind of fund invests in the shares of companies that are traded at discounted rates, and the primary reason for investors to choose these stocks is that they could be undervalued due to temporary factors but can give high returns in the long run. The idea is to invest in these stocks and hold them over a period until their market prices align with their perceived true values. Value Funds have gained attention in the current market scenario as they tend to perform well in a recovering economy. As markets stabilise and grow, undervalued stocks with solid fundamentals often see significant appreciation in values, benefitting Value Fund investors. These funds have also given stellar returns in the last year. Quant Value Fund, the topper in the category, gave 80.94% in the last year. JM Value Fund and Nippon India Value Fund gave over 60% return in the same time period. ICICI Prudential Value Discovery Fund, the largest scheme in the category based on assets managed, gave a 44.49% return in the last year. According to experts, Value funds are ideal for long-term investors (5+ years) who can handle market ups and downs. The downside risk and the level of volatility in the case of value mutual funds are lower when compared with other types of equity funds. Since these stocks are already undervalued, they are less impacted in a bearish market. By investing in stocks below their intrinsic values, Value Funds offer the potential for high returns in the long run What are the risks of investing in Value Funds? The primary risk of investing in Value Funds is the market risk associated with equity investing. Additionally, there is the risk that the fund’s assessment of a stock’s intrinsic value may not align with the market trends.