What are Value Funds?

A value fund is a type of open-ended equity scheme that invests in stocks that are undervalued on the stock market. According to AMFI India, this equity fund category follows a value investing strategy with at least 65% of investments in equity. The objective of the value investing strategy is to identify stocks that are trading for less than their intrinsic or book value. In the long run, these stocks may deliver substantial returns despite being undervalued at the moment due to several market factors.

Features of a Value Mutual Funds

Value investing approach

Value funds invest in stocks that are believed to be undervalued by the market, using fundamental analysis to identify such opportunities.

Long-term capital growth

Value funds aim to provide long-term capital growth to investors by investing in stocks that have the potential to appreciate in value over time.

Diversified portfolio

Value funds typically invest in a diversified portfolio of stocks across different sectors and industries, reducing the risk associated with investing in a single stock.

FAQ's

What is the minimum investment amount for a value fund?

The minimum investment amount for value funds varies depending on the fund house and the specific fund. With SIP investment options, you can begin investing as little as Rs. 100. It is important to read the fund's offer document to understand the minimum investment amount and other investment details

What is the ideal investment duration for a value fund?

Are Value Funds redeemable at any time?

What is the difference between value funds and growth funds?

Are value funds risky?

What is the minimum investment amount for a value fund?

What is the ideal investment duration for a value fund?

The value fund is intended for long-term investments. Therefore, these funds are generally invested for 5 years or more.

Are Value Funds redeemable at any time?

Yes, value funds are redeemable at any time after deducting the exit load, if applicable.

What is the difference between value funds and growth funds?

Value funds invest in stocks that are believed to be undervalued by the market, while growth funds invest in stocks with high growth potential. The investment approach and objectives of these two types of funds are different.

Are value funds risky?

All investments carry some level of risk, and value funds are no exception. However, value funds typically invest in a diversified portfolio of stocks, which can help to reduce the risk associated with investing in a single stock.

Note: Views and opinions contained herein are for information purposes only and should not be construed as investment advice/ recommendation to any party or solicitation to buy, sale or hold any security or to adopt any investment strategy. It does not warrant the completeness or accuracy of the information and disclaims all liabilities, losses and damages arising out of the use of this information. The recipient should exercise due caution and/ or seek professional advice before making any decision or entering into any financial obligation based on information, statement or opinion which is expressed herein.This is an investor education and awareness initiative by Axis Mutual Fund. Investors have to complete one-time KYC process. Visit www.axismf.com or contact us on customerservice@axismf.com for more information. Investors should deal only with Registered MFs, details of which are available on https://www.sebi.gov.in - Intermediaries/Market Infrastructure Institutions section. For any grievance redressal, investors can call us on 1800 221 322 or write us at customerservice@axismf.com or register complaint on SEBI Scores portal at https://scores.gov.in

Statutory Details: Axis Mutual Fund has been established as a Trust under the Indian Trusts Act, 1882, sponsored by Axis Bank Ltd. (liability restricted to ₹ 1 Lakh). Trustee: Axis Mutual Fund Trustee Ltd. Investment Manager: Axis Asset Management Co. Ltd. (the AMC). Risk Factors: Axis Bank Ltd. is not liable or responsible for any loss or shortfall resulting from the operation of the scheme.

Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.