Understanding Value Funds: Are they the Right Investment for You?


A value fund is a type of ETF or mutual fund that invests in stocks that have been undervalued by the managers due to high dividend yields or fundamentals that may indicate a larger intrinsic value than the current, listed price. The concept between a value fund is that there will be a price increase after the market discovers the mispricing.

However, not all value funds are the same, and it is necessary to learn how to find the best value fund in India for the best results with these investments.

Value Investing Made Simple

To put it simply, value investing is something that refers to the purchase of stocks that you think are trading for a lower amount than they are actually worth. The goal is to earn a profit when/if the stock returns to its actual value.

There are a few different ways that investors determine if a stock has been undervalued. They can use metrics and analysis, or they can look at the stocks dividend yield.

Finding the Right Value Fund

It is important to realize that there isn’t a secret formula or method that can be used to find the best value fund in India. In most cases, each investor is going to have a different answer when asked about the intrinsic value of specific stocks. This is why it is so difficult to find value stocks and why the help of a professional should be used.

Being informed and using the help of the professionals is one of the easiest ways to find the best value fund in India. Don’t rush into an investment as it may prove to be a bad one if you aren’t careful.

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