Nowadays the stock market is creating new heights and investors are confused as to understand where they should expand their investment from now. In such a time, equity funds with a value strategy are the best chance. Value funds strategy help you to invest in a portfolio of stocks that bear lower downside risk and still provide strong returns over a longer period.
2. Meaning of Value Fund
In Value fund strategy mutual funds invest in stocks which are undervalued. The underlying assumption is, stocks may be undervalued because of temporary elements and it expect higher returns as compared to a companion once the valuation is at par. Value funds strategy will give reward only over a longer period. It need time for the market to identify hidden possibility and then lift the stock.
3. Key Features of Value Fund