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Five Best Value Funds to Invest in

Highlights

  • Value funds buy stocks available at low valuations with a view that they will do well over time
  • Since these funds may not have high potential in the near future, choosing the right value fund becomes important - Check the list of best value funds here

Value funds are open-ended equity funds that invest in stocks available at cheap valuations. These funds are one of the various categories of equity funds that look at stocks available at a price lower to their intrinsic value. There are some value funds that are also known as contra funds since they take a contrarian view on certain sectors and stocks and invest against trending stocks. To know more about value funds, their advantages and should you invest in them, you can read another post of ours-https://www.wishfin.com/mutual-fund/value-mutual-funds-definition-advantages-should-you-invest-in-them/. Let us now see the best value funds to invest.

Top Mutual Funds to Invest in Now

Best Value Funds to Invest in

ICICI Prudential Value Discovery Fund

This fund is offered by ICICI Prudential Mutual Fund. These are the features and key points about this fund:

  • This fund was launched on 16th August 2004 and has delivered annualized returns of 17.75%.
  • The current AUM of the fund is INR 14,056 crores, which makes it the largest value fund by size.
  • It is rated three stars by Value Research.
  • The current portfolio consists of 44 stocks.
  • The portfolio allocation is 74% in large-cap stocks and 26% in mid and small-cap stocks.

Invesco India Contra Fund

This fund is offered by Invesco Mutual Fund. These are the features and key points about this fund:

  • This fund was launched on 11th April 2007 and has delivered annualized returns of 12.03%.
  • The current AUM of the fund is INR 4,300 crores.
  • It is rated three stars by Value Research.
  • The current portfolio consists of 50 stocks.
  • The portfolio allocation is 66% in large-cap stocks and 34% in mid and small-cap stocks.
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Kotak India EQ Contra Fund

This fund is offered by Kotak Mutual Fund. These are the features and key points about this fund:

  • This fund was launched on 27th July 2005 and has delivered annualized returns of 10.96%.
  • The current AUM of the fund is INR 709 crores.
  • It is rated four stars by Value Research.
  • The current portfolio consists of 55 stocks.
  • The portfolio allocation is 78% in large-cap stocks and 22% in mid and small-cap stocks.

Tata Equity PE Fund

This fund is offered by Tata Mutual Fund. These are the features and key points about this fund:

  • This fund was launched on 29th June 2004 and has delivered annualized returns of 16.81%.
  • The current AUM of the fund is INR 3,997 crores.
  • It is rated four stars by value research.
  • The current portfolio consists of 37 stocks.
  • The portfolio allocation is 66% in large-cap stocks and 34% in mid and small-cap stocks.

UTI Value Opportunities Fund

This fund is offered by UTI Mutual Fund. These are the features and key points about this fund:

  • This fund was launched on 20th July 2005 and has delivered annualized returns of 12.31%.
  • The current AUM of the fund is INR 3,750 crores.
  • It is rated four stars by Value Research.
  • The current portfolio consists of 58 stocks.
  • The portfolio allocation is 65% in large-cap stocks and 35% in mid and small-cap stocks.

Returns of Value Funds

These are the returns delivered by these funds in % terms (regular plan):

As we can see value funds have bounced back sharply in the last three months with 30% + returns for all these funds. However, the last three years have not been good for value funds since markets have been in a correction mode and value of many companies has eroded. This also gives an opportunity to buy a value fund since prices currently are suppressed. We recommend looking at various factors as mentioned in the other value fund article, whose link is shown above, before investing. One can allocate a small % to a value fund in his/her equity portfolio.