Value Mutual Funds: People’s interest in Value Funds has increased a lot in the last one and a half years. Before 2020, the benefit of the rally in the markets was visible only to a select group of stocks. By the way, a good rally is being seen in the market for the last 12-18 months. That is, there has been an increase in the stock of all sectors and segments. This is the reason why stocks that have been trading at attractive valuations for a long time saw a manifold increase in price. Due to these reasons, there has been a return in value funds as well.
Many value funds have a glut of mid and small stocks. In the opinion of experts, one should invest in these stocks for a long period or at least 7 years. These funds use parameters like price-to-earnings (PE), price-to-book (P/B), return on equity (RoE) and other such parameters to select stocks. We are going to tell you about the top-5 funds in this sector, which have given excellent returns of 44 to 64% this year.
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IDFC Sterling Value Fund has been in the market for more than 13 years and is one of the highest paying funds in this category. According to the data, this scheme has given 64 percent returns in the last one year. The fund has bets mostly on mid- and small-cap stocks. Apart from financials, Automobile, FMCG and Construction sector funds are prominently included in the fund’s portfolio. The fund manages an asset of Rs 4207 crore and its expense ratio fee of Direct Growth Fund is 0.88 per cent.
SBI Contra Fund has given 58.3 per cent returns in the last one year. This scheme is running since July 1999. It has a track record of betting on value stocks. It has invested 55 per cent of its assets in mid- and small-caps and the rest in large-cap stocks. The fund adopts different strategies for different stocks, through which it minimizes the risk. The fund manages assets of Rs 3,106 crore, and has an expense ratio of 1.47 per cent.
Templeton India Value Fund has given 51.9 per cent return in the last one year. It has been more than 25 years since this fund was started. Unlike other schemes in this category, it is the only fund that has a significant majority of large cap shares (74 per cent). The fund’s exposure to select stocks is quite high. It manages assets of Rs 621 crore and has an expense ratio of 1.64 per cent.
Nippon India Value Fund is at the fourth position in this list with 46% return in the last one year. This fund invests around 65 per cent of its portfolio in mid and small cap stocks. The portfolio is dominated by financial sector stocks. Also, construction, healthcare and energy stocks are also prominent in the portfolio. The fund manages assets of Rs 4,368 crore and has an expense ratio of 1.32 per cent.
L&T India Value Fund has given 44.4 per cent return in one year. This scheme maintains some degree of balance between large cap and mid and small cap. Some of the top stocks included in its portfolio are from Nifty. The fund manages assets of Rs 8,009 crore and charges 0.86 per cent as expense ratio.
(Investment advice in any fund is not given by ABP News here. The information given here is for informational purposes only. Mutual fund investments are subject to market risk, read all scheme documents carefully. NAV can fluctuate depending on the factors and forces influencing the security market including fluctuations in interest rates.The past performance of a mutual fund may not necessarily reflect the future performance of the schemes. The mutual fund does not guarantee or guarantee any dividend under any of the schemes and is subject to the availability and adequacy of distributable surplus. Investors are advised to review the prospectus carefully and seek specific legal, tax and scheme You are requested to seek expert professional advice regarding the financial implications of investing/participating in