Top Rated Value Funds in 2024 - Best Value Funds

Scheme Name	Min. Investment	AUM (in Cr.)	Rating	1Y Returns	3Y Returns	5Y Returns
Sorry, No Data Available at this Moment!

Scheme Name

Min. Investment

AUM (in Cr.)

Rating

1Y Returns

3Y Returns

5Y Returns

Sorry, No Data Available at this Moment!

Returns on Value Funds

Total Investment

₹ 1,20,000

Gain

₹ 40,000

Current Value

₹ 1,60,000

Montly SIPLumpsum

You have invested

1 Year3 Year

Check the Returns of Your Investment in

About Value Funds

A Value Fund focuses on stocks that are undervalued compared to their intrinsic value. Value Funds choose stocks using the value-investing approach. Investors choose this fund to leverage the long-term benefit of investing in less expensive but high-return potential stocks. Here are the key features of Value Funds:

The fund manager of this equity mutual fund selects stocks that are trading at a discount to their true value because of certain inefficiencies.
These funds often take a bottom-up approach to investing and prioritizing individual stock selection over market timing. They use basic indicators like book value, earnings, dividends, and other financial ratios to evaluate companies.
Value Funds may face difficulties when interest rates are low. Growth-oriented stocks typically do better in these periods. This may affect the fund's short-term performance.

Value Investing can be an effective strategy, but it's important to understand that these stocks could stay undervalued for a prolonged period of time. Value Funds might therefore go through periods of underperformance, so you need to be ready to tolerate the same.

Value Investing is a strategy used by some of the world's most successful investors, including Warren Buffet. It involves choosing stocks that the market may overlook but are trading below their intrinsic value. It has the potential to provide long-term capital appreciation. Value funds offer several benefits:

Investing in a Value Fund can effectively diversify your portfolio. Because the companies in these funds are distributed throughout multiple industries, your portfolio may achieve a good risk-return balance.
Value stock companies typically have lower valuation multiples than growth stocks (e.g., price-to-earnings or price-to-book ratios). This may increase the attraction from a valuation perspective, particularly if you prioritize purchasing assets at fair market value.
There is a long history of success with value investment. Legendary investors like Warren Buffett and Benjamin Graham have made substantial returns by sticking to the value investing strategy.

It's important to remember that value investing carries risks and that success is not guaranteed, just like any other investment method. The dynamics of the market might shift, and value stocks may continue to be undervalued for extended periods. When deciding on Value Fund investing, you should carefully consider your time horizon, financial goals, and risk tolerance.

Value Investing can be a great choice if you are comfortable with these factors:

Value Funds are ideal for those seeking long-term growth while prioritizing stability. Remember that value funds take time to produce true rewards, so you should be prepared for progressive growth in your investments.
Value Funds' performance can be impacted by market and economic factors. So, you should be aware of the wider market dynamics.
Investing in discounted shares carries some risk even though value investing tries to protect against losses. These stocks might face difficulties and cannot achieve their true value rapidly. Make sure your level of risk tolerance is compatible with the possible volatility of Value Funds.
These funds can be a better option if you can deal with short-term fluctuations in the market and have a longer time horizon. Although short-term market fluctuations are uncertain, discounted stocks are expected to increase in value over time.

Keep in mind that there is always risk associated with investing in these funds and that diversity is essential to creating a well-rounded portfolio. Depending on your overall financial plan, it's good to have a varied mix of assets, which may include a combination of growth funds, value funds, and other investment options.

Here are some considerations to find out if Value Funds are right for you:

Fund managers choose value stocks with low market prices compared to their actual value. These funds gain their true value at a steady and slow rate as compared to growth funds. So, you need to be patient.
Value Investing is typically seen as less speculative if compared to other investing approaches. These may be suitable if you have a conservative to moderate risk tolerance and want investments that prioritize stability and downside protection.
In value investing the selected stocks are temporarily undervalued or experiencing challenges. You can choose value funds if you feel comfortable defying market trends and think there is a chance for sentiment to shift.

Value Funds are a great way to improve portfolio diversification. Because they are chosen after a thorough evaluation. To ascertain whether the fund is meeting your investing objectives, always examine the fund's historical performance and its associated expenses.

The fund manager of this equity mutual fund selects stocks that are trading at a discount to their true value because of certain inefficiencies.
These funds often take a bottom-up approach to investing and prioritizing individual stock selection over market timing. They use basic indicators like book value, earnings, dividends, and other financial ratios to evaluate companies.
Value Funds may face difficulties when interest rates are low. Growth-oriented stocks typically do better in these periods. This may affect the fund's short-term performance.

Investing in a Value Fund can effectively diversify your portfolio. Because the companies in these funds are distributed throughout multiple industries, your portfolio may achieve a good risk-return balance.
Value stock companies typically have lower valuation multiples than growth stocks (e.g., price-to-earnings or price-to-book ratios). This may increase the attraction from a valuation perspective, particularly if you prioritize purchasing assets at fair market value.
There is a long history of success with value investment. Legendary investors like Warren Buffett and Benjamin Graham have made substantial returns by sticking to the value investing strategy.

Value Investing can be a great choice if you are comfortable with these factors:

Value Funds are ideal for those seeking long-term growth while prioritizing stability. Remember that value funds take time to produce true rewards, so you should be prepared for progressive growth in your investments.
Value Funds' performance can be impacted by market and economic factors. So, you should be aware of the wider market dynamics.
Investing in discounted shares carries some risk even though value investing tries to protect against losses. These stocks might face difficulties and cannot achieve their true value rapidly. Make sure your level of risk tolerance is compatible with the possible volatility of Value Funds.
These funds can be a better option if you can deal with short-term fluctuations in the market and have a longer time horizon. Although short-term market fluctuations are uncertain, discounted stocks are expected to increase in value over time.

Here are some considerations to find out if Value Funds are right for you:

Fund managers choose value stocks with low market prices compared to their actual value. These funds gain their true value at a steady and slow rate as compared to growth funds. So, you need to be patient.
Value Investing is typically seen as less speculative if compared to other investing approaches. These may be suitable if you have a conservative to moderate risk tolerance and want investments that prioritize stability and downside protection.
In value investing the selected stocks are temporarily undervalued or experiencing challenges. You can choose value funds if you feel comfortable defying market trends and think there is a chance for sentiment to shift.

Frequently Asked Questions

Value Funds operate by identifying and investing in stocks that are currently undervalued in the market but have strong fundamentals and a good potential for growth. Fund managers pick these stocks based on extensive research, aiming to benefit from their eventual market correction.

These funds are typically invested across various sectors, aiming to pick undervalued stocks from a wide range of industries. This approach helps in diversifying the investment portfolio and limits exposure to stocks with significant risk-reward ratios.

Value Funds have the potential to multiply your wealth significantly and maximize portfolio value over the long term. They aim for high growth by investing in stocks that are expected to appreciate in value once the market corrects their undervaluation.

No, Value Funds are not tax-free. Like other mutual fund investments, the profits earned from Value Funds are subject to capital gains tax, depending on the duration of the investment.

For Value Funds, if you sell your investment after a year, gains up to ₹1 lakh are exempt from tax. Any gains above this limit are taxed at 10%. For investments sold within a year, the profits are taxed at 15%. Additionally, dividends are taxed according to the your income tax slab, with TDS applicable on dividend incomes exceeding ₹5,000 in a financial year.

When looking for a value fund, it's important to consider the fund's track record, management's experience, and investment approach. It's important for you with a long-term investment horizon to consider Value Funds, as they invest in undervalued assets expected to perform well in the long run. Diversifying your holdings and assessing your risk appetite are also crucial steps in selecting the right Value Fund.

No, you don’t need a demat account to invest in Value Funds. You can easily invest through a mutual fund platform or directly with the asset management company offering the fund. This simplifies the process, allowing for direct investment without the need for a demat account.

Both lump sum and SIP (Systematic Investment Plan) have their advantages in Value Funds, depending on your financial situation and goals. SIPs allow for disciplined investing over time, potentially mitigating the impact of market volatility. Lump sum investments might be suitable if you have a significant amount of money to invest and want to capitalize on the current undervaluation of stocks.

To start an Value Fund SIP online, follow these 4 steps:

Open Demat Account
Choose the Value Fund you wish to invest in.
Choose the SIP option, specifying the amount and SIP date
Set up an auto-pay via bank account to automate the SIP payments

Yes, you can redeem your investments in Value Funds at any time. However, it's advisable to view these investments with a long-term perspective, as value investing often requires time for the market to recognize the true value of the undervalued stocks. Be mindful of any exit loads that might apply.

Value Funds don't usually have a lock-in term like some tax-saving investments do. This gives you the flexibility to manage your investments according to your financial needs and market conditions. However, value investing is best suited for long-term goals due to the nature of the investment strategy.

Value Funds, like all equity investments, carry market risks. The main risks include the possibility of selecting stocks that remain undervalued for extended periods or do not appreciate as expected. Additionally, market volatility can affect the fund's performance. Thorough research and a long-term investment horizon can help mitigate these risks.

Of course, no investment is completely risk-free, and Value Funds are no different. Although their goal is to buy stocks that are cheap and have a chance to go up in value, they are still vulnerable to market risks and instability. To handle the risks that come with Value Funds, it's important to do your research, choose a diverse strategy, and spend for the long run.