Value Mutual Funds are the equity funds that invests in the companies’ stocks that have Value. Now, let us know what is meant by the term value here. If the company’s market value is less than the intrinsic value. then that company is having value. companies calculate their intrinsic value by considering some factors such as financial status, business model, competitive position, and the management team. When it comes about value mutual funds, these companies though they have high valued intrinsic value, they still show off as low below their worth, but at final they grow potentially in future. Growth, value, and contrarian investment strategies are the main assets of any kind of mutual funds, based on these strategies mutual funds are been classified. As there are different types of Mutual funds are available in the market, investors mostly choose value mutual funds, as these mutual funds have shown consistent growth since past 5 years. Value mutual funds offers wealth for retail, institutional investors also to other overlooked segments. Many investors are attracted towards this type of equity scheme as they have comparatively lower risk factors, and offer good returns, and have fast growth within short period of time.
What are the Features of Value Mutual Funds?
- They are the open-ended equity funds Schemes.
- They offer sustainable growth rate and good returns.
- Offer high income potential for the investors.
- Supports the underperforming sectors, with the support of such funds even these segments get uplifted.
- Value Mutual funds provides tax exemption up to 1 lakh under the Long-term Capital Gain Tax, when the limit is above 1 lakh 10% tax is applicable.
- These schemes are suitable for low-risk investors.
- For short-term investing policies.
- Steady growth and stable returns without any effect of downfall.
What are the advantages of Value Mutual Funds?
- Assured Returns
- Low risks
- Short-term plans
- Higher returns than the other mutual funds.
As per SEBI Top Value Mutual Funds in India are:
- UTI Value Opportunities Fund
- Tata Equity P/E Fund
- L&T India Value Fund
- ICICI Prudential Value Discovery Fund
- JM Value Fund
- Nippon India Value Fund
- HDFC Capital Builder Value Fund
- Templeton India Value Fund
- IDFC Sterling Value Fund
- Indiabulls Value Discovery Fund
- Aditya Birla Sun Life Pure Value Fund
Bottom Line:
When it comes for investment, there are different investment options of equity schemes. If you have low risk appetite and wants short term investment options with assured and higher returns, then Value Mutual Funds are the best investment scheme.