Invest in Best Value Funds in India 2024
Discover the best Value Funds in India for 2024. Learn who should invest, key benefits, risks, and find the top performing Value funds.
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What are Value Mutual Funds?
Value Mutual Funds are a type of equity funds that are primarily invested in undervalued stocks. These stocks are trading below their intrinsic value and have the potential for significant increase over a period of time. It is often confused with Contra funds, where the stocks are temporarily out of flavour, whereas value funds are typically traded below its intrinsic value with the hope that it will reach its potential some day.
Who Should Invest in Value Mutual Funds?
- Long-Term Investors: Individuals with a long-term investment horizon, typically those who have five or more years can invest in these funds
- Investors holding growth stocks: Those who already have growth stocks and have a history of generating high returns
- Risk-Tolerant Investors: Investors who have high risk bearing ability can choose this fund
- Experienced Investors: Investors with a good understanding of market dynamics and the patience to wait for value to be realized.
Best performing Value Mutual funds
| Fund name | Category | Risk | 6 months return | 1 year returns | Rating | Fund Size in crores |
| ICICI Prudential Value Discovery | Value | Very High | 20.12 | 42.13% | 4 | 45470 |
| Groww Value Fund | Value | Very High | 14.81% | 38.72% | 3 | 24.57 |
| Nippon India Value Fund | Value | Very High | 22.09% | 50.19% | 4 | 8187 |
| JM Fund | Value | Very High | 25.51% | 61.17% | 5 | 839 |
| HSBC Value Fund | Value | Very High | 25.71% | 52.34% | 4 | 13357 |
Factors to Consider While Investing in Value Mutual Funds
- Fund Manager’s Expertise: Assess the fund manager’s experience in managing this fund over a course of 5-7 years and how he has been moving the investment objective across various market cycles
- Valuation Metrics: Understand the metrics used by the fund to identify undervalued stocks (P/E and P/B ratio)
- Investment Horizon: It is best suited for investors who have a long-term horizon in mind
- Portfolio Composition: Review the sectors and stocks in the fund’s portfolio to understand its investment strategy
- Expense Ratio: Consider the expense ratio as they play a big role on returns
Major Benefits of Value Mutual Funds
- Potential for High Returns: Investing in undervalued stocks can lead to potentially higher returns in the future
- Lower Risk: The downside risk of value mutual funds is lower compared to other types of equity funds
- Dividend Income: Some undervalued stocks offer a dividend giving you a steady source of income
- Professional Management: Managed by experienced fund managers skilled in identifying and investing in undervalued opportunities.
Risks Involved in Value Mutual Funds
- Time Risk: Value stocks may take a very long time to realize their actual potential, so it is considered as risky to invest
- Underperformance: There is no guarantee that these funds would perform to its potential and provide you profit
- Economic Risk: Changes in economic conditions can drastically impact the stock prices
Frequently Asked Questions (FAQs) about Value Mutual Funds
1. What are Value Mutual Funds?
Valued funds are funds invested in undervalued stocks with the hope that its value might reach its true potential and increase at some point
2. Who should consider investing in Value Mutual Funds?
People who have longer investment horizon and high risk taking ability can consider investing in these funds
3. Is it good to invest in Value Funds?
Value funds have certain inherent risks associated with them. If you have high risk-tolerance and patience, you can go for value funds
4. What risks are associated with Value Mutual Funds?
The risks associated with value funds include market risk, time risk, selection risk, economic risk, and volatility.
5. How do I choose the best Value Mutual Fund?
Consider factors like historical performance, your risk tolerance, expense ratio, fund manager’s track record, and your investment goals before choosing the fund. You can seek the assistance of Fincover, whose MF experts would consider you pick the best Value fund in the market
- Tata Mutual Fund
- Canara Robeco Mutual Fund
- PPFAS Mutual Fund
- Nippon India Mutual Fund
- HSBC Mutual Fund
- SBI Mutual Fund
- Edelweiss Mutual Fund
- PGIM India Mutual Fund
- LIC Mutual Fund
- Bandhan Mutual Fund
- Quantum Mutual Fund
- HDFC Mutual Fund
- Axis Mutual Fund
- ITI Mutual Fund
- Kotak Mutual Fund
- ICICI Prudential MF
- Aditya Birla Sunlife MF
- DSP Mutual Funds
- Mirae Asset Mutual Fund
- Motilal Oswal Mutual Fund
- Sundaram Mutual Fund
- Invesco Mutual Fund
- Taurus Mutual Fund
- Whiteoak Capital MF
- Quant Mutual Fund
- JM Financial MF
- UTI Mutual Fund
- Baroda BNP Paribas MF
- Franklin Templeton MF
- Union Mutual Fund