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Mid and small cap MF investors need to tread with caution as equities trade at premium

Mid and small cap MF investors need to tread with caution as equities trade at premium
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Value mutual funds make a strong comeback. Should you invest?


Value mutual funds make a strong comeback. Should you invest?
Synopsis
Value funds are those mutual fund schemes which invest in stocks which are priced lower than their intrinsic value. Value stocks are basically businesses that have high potential that are temporarily out of favour.
After a long wait, value investing has made a comeback in the Indian stock market. Many fund managers have been saying that the value style is more lucrative at this point in the market than the growth style. Obviously, this trend has started showing up in the performance of value funds viz-a-viz the growth funds. With 59.42% returns in one year, value funds are offering great returns to the investors. Toppers in the category have earned around ....

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Value funds shine amid broad-based rally as 'growth' trade fizzles out


A broad-based rally in the Indian equity markets have helped value-focused funds deliver superior returns in the last one year. Value funds were out of favour as investors piled on to ‘growth’ stocks even at lofty valuations in the pre-pandemic world, leading to sharp polarisation in the stock market returns.
But in the last one year, value funds have started delivering returns as investors have shifted their stocks away from growth stocks to ones that are available at attractive valuations.
Mutual fund (MF) industry players believe that even now there is enough value in the market.
“We believe value is in the early stages of playing catch-up with growth and quality which has significantly rallied over the past few years. Also, several stocks public sector undertakings (PSUs) and others which have been beaten down names over the past several years, have caught investor attention due to their deep value have started rallying. All of this put together, has help ....

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