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Value Mutual Funds
- Average returns - Dynamic
- Number of funds - (Static)
What is a Value Fund?
A Value Fund is an equity mutual fund which follows the value principle of investing. The fund invests primarily in stocks of companies which are undervalued but which have string fundamentals. As such, when the companies grow, you can earn attractive returns on investment.
Advantages of Value Funds
Long-term growth potential
As undervalued companies reach their potential over time, your investments can yield attractive returns.
Portfolio diversification
Your portfolio comprises good quality stocks at low prices and is diversified across sectors with professional fund management.
Lower volatility risk
Since Value Funds invest in undervalued stocks, their prices dont fall considerably even when the market declines. As such, volatility risks are comparatively lower.
Explore Value Funds
AUM: 23427(Cr)
Risk: Very High
- MIN. INVESTMENT 500
- 5 YRS RETURNS 33.32%
- Invest (Per Month) ₹10000
- Get (30 Yrs) ₹24,850*
*Projections/estimations is backtested using historical data.
- AUM: 23427(Cr)
- Risk: High
- MIN. INVESTMENT 1000
- 5 YRS RETURNS 33.32%
- Invest (Per Month) ₹15000
- Get (30 Yrs) ₹34,850*
*Projections/estimations is backtested using historical data.
Value Funds Returns Calculator
REGULAR INVESTMENT
SIP
Invest systematically in regular amounts and build a corpus with a disciplined investing habit.
ONE TIME INVESTMENT
Lump sum
Invest once with the facility of lump sum investing and save at your will. Time the market correctly and earn good returns.
Total Amount Invested
₹ 0
after 30 years you will get a return of
₹ 0
Disclaimer: Projections/estimations is backtested using historical data.
Total Amount Invested
₹ 0
after 30 years you will get a return of
₹ 0
Disclaimer: Projections/estimations is backtested using historical data.
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Understanding Value Funds
Table of Contents
What are Value Funds?
-
A type of equity mutual fund , Value Funds are those which invest at least 65% of their portfolio in stocks and securities of companies which are undervalued but which have a good potential. Such companies are fundamentally strong which are currently out of favour with investors but which have the potential to deliver long-term returns.
What are the features of Value Funds?
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Diversified portfolio of undervalued securities across sectors
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The portfolio allocation is not regulated allowing fund managers allocation flexibility
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Suitable for investors with a long-term investment horizon of 7+ years
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Invest through SIPs or lump sum
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Earn tax-free returns up to ₹1 lakh if you stay invested
Who should invest in Value Funds?
Seasoned investors who don’t mind placing bets on undervalued companies
Investors who are aware of macro trends and can check the fundamentals of a company
Investors who are patient with the principle of value investing
Long-term investors who don’t have immediate financial obligations
What should be the investment horizon for Value Funds?
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Value Funds consist of stocks which are undervalued
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Such stocks take time to get noticed and raise their valuation
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As such, short-term investment is not recommended as the return potential is limited
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Value Funds are suitable if you have an investment tenure of 7+ years
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A long-term horizon also helps earn attractive investment returns
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You also get a tax benefit on staying invested for a longer tenure
What is the tax implication of Value Funds?
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Returns up to ₹1 lakh are tax-free if you stay invested for 12 or more months
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Returns exceeding ₹1 lakh are taxed at 10%
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For redemption within 12 months, returns are taxed at 15%
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Dividends earned, if any, are taxed at your income tax slab rate
What are the payout options?
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Dividend option
Earn dividends on your investment at regular intervals
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Growth option
Accumulate the returns over the investment tenure and get a lump sum amount on redemption
FAQs On Value Funds
The core of value investing lies in ‘buying when cheap, selling when expensive’. Value investors pick stocks trading at lower than their intrinsic value, and buy them with the expectation to sell them and earn profits in the long-term.
The intrinsic value of a stock (often called the real value) is essentially the anticipated value that takes long-term growth and not just current market value into consideration. Its calculation is based on fundamental analysis.
Value stocks are individual equities that are undervalued in the market with regard to intrinsic value, while Value Funds are mutual funds that diversify and invest in a portfolio of value stocks.
Before investing in Value Funds, you must consider the fund’s expense ratio and historical performance, the fund manager’s track record and investment strategy, and your own risk tolerance.
No, Value Funds are not risk-free. They carry stock specific risks as well as market risks (owing to the market being unpredictable at all times).
There is no lock-in period for Value Funds, you can redeem them as per your choice. However, try to align this decision with your long-term financial goals, market conditions, and other factors such as the exit load of the fund.
Types of Equity Mutual Funds
Funds Based On Market Capitalisation
Funds Based On Investment Style
Other Asset Class Funds
ETF Funds
Invest in funds listed and traded on the stock exchange
Know More
Fund of Funds
Mutual funds that invest in other mutual funds both in India and globally
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Hybrid Funds
Get a mix of equity, debt and other asset classes for a diversified portfolio
Know More
Index Fund
Passively-managed mutual funds tracking a particular index
Know More