One popular option for people looking to increase their wealth over time is investing in mutual funds. Value funds have attracted a lot of attention because of their distinct investing strategy, even though the market provides a wide range of options. Best Value Funds in India are one of the most promising investment options in India, a country with a diverse investment landscape. The purpose of this guide is to examine the idea of value funds and to showcase some of the top choices in the Indian market.
List of Best Value Funds in India
|Best Value Funds in India||Fund Size|
|ICICI Prudential Value Discovery Fund – Direct Plan-Growth||₹27449.73 crore|
|UTI Value Opportunities Fund – Direct Plan-Growth||₹6740.43crore|
|IDFC Sterling Value Fund – Direct Plan-Growth||₹5,145.25 crore|
|Nippon India Value Fund – Direct Plan-Growth||₹4641.67 crore|
|Templeton India Value Fund – Direct-Growth||₹845.01 crore|
|JM Value Fund – (Direct) – Growth||₹163.86 crore|
|HSBC Value Fund – Direct Plan-Growth||₹7781.82crore|
|Tata Equity PE Fund – Direct Plan-Growth||₹5,119.81 crore|
|HDFC Capital Builder Value Fund – Direct Plan-Growth||₹5227.16crore|
|Quantum Long-Term Equity Value Fund – Direct Plan-Growth||₹837.17 crore|
|Indiabulls Value Fund – Direct Plan-Growth||₹9.71 crore|
|Aditya Birla Sun Life Pure Value Fund – Direct Plan-Growth||₹3,798.33 crore|
|Canara Robeco Value Fund – Direct Plan-Growth||₹758.21crore|
|Quant Value Fund – Direct Plan-Growth||₹601.33 crore|
|DSP Value Fund – Direct Plan-Growth||₹576.95 crore|
How to Invest in Best Value Funds in India?
- Register online through platforms like Zerodha, Groww, and Paytm Money website or app.
- Select the Value Oriented fund that you wish to invest in by going to the Mutual Funds section.
- Click Invest, then select the investment amount and method (Lumpsum or SIP).
- Proceed with your investment after providing your KYC information (PAN number, bank details).
Benefits of Investing in Best Value Funds in India
- Value funds contribute to portfolio diversification in situations where growth-oriented funds make up the majority of the funds.
- Over time, they have produced strong returns.
- Value investing tends to guarantee a smaller downside during a market downturn because it concentrates on less expensive stocks and those that might be out of style. Since these funds aren’t invested in stocks that come with high expectations, they become less susceptible.
- Value investing is thought to provide a more favorable risk-reward profile in a volatile or overpriced market.
- Value investing is regarded as one of the best equities investment strategies in the world. According to financial experts, value investing has performed fairly well in India lately.
Factors to Consider Before Investing in Best Value Funds in India
- Historical performance: Most investors take into account the fund’s five-year performance history. When making an investment in a value fund, this is more crucial. You can decide whether the aforementioned scheme is appropriate for your portfolio by looking at how the fund manager has adhered to the value investing technique while achieving the fund’s investment objective. As a result, you ought to look into the fund’s historical performance as well as the stocks that make up its portfolio. Examine and decide in light of the analysis. However historical performance does not guarantee future results.
- Investment Horizon: A minimum investment horizon of five to seven years is recommended by many financial gurus when investing in stocks or securities related to stocks. This is especially crucial for value investing since fund managers buy cheap stocks because of the state of the market. Before the markets start to rise again, the current circumstances might need to pass. Consequently, if you have a minimum of five years to invest, buy a value fund.
- Diversification: The fund manager can choose to invest in large-cap or small/mid-cap value stocks because it is an equity fund. Choose a value fund that is diversified across multiple market capitalizations and industries unless you are looking for exposure to companies within a specific market capitalization group. Investing with all of your eggs in one basket is never a wise move.
Features of Best Value Funds in India
- Requires extensive research: It takes a lot of market research and analysis to find value funds. Value mutual funds that do well in the market are typically run by fund managers with a wealth of knowledge and understanding of the stock market and fundamental analysis.
- Long-term investments: Value fund managers make investments in stocks that are cheap because of specific market circumstances. These conditions typically don’t have set recovery times. It is crucial to continue investing in value funds for a minimum of five years.
- Risk appetite: Because value funds are equity funds, there is a high level of risk involved. Like any other equity mutual fund scheme, they are vulnerable to market risks. However, compared to other equity funds, the downside risk is comparatively lower in a bear market because the stock prices of these funds are already lower when you invest in them. Furthermore, the bear market’s decline might not be as big as other ones.
- Expense ratio: Value funds have annual fees in the form of expense ratios, just like other mutual funds. These expenses are related to the management and functioning of the fund.
Q. What Sort of Returns Are Possible with the Best Value Funds?
Ans. Nobody can predict the stock market with any degree of accuracy, so it is impossible to predict future gains in equity funds. The stocks that are selected by the fund manager also have an impact on gains. However, based on past results, if you were to invest for a period longer than five years, a compound annual growth rate of twelve to fifteen percent, provided that the economy continues to grow at an average annual rate of seven percent.
Q. How Much Time Should I Put Into Best Value Funds?
Ans. Having a long-term investment strategy is essential if you intend to invest in value funds in India, ideally for a minimum of five years.
Q. Where Are Invested by Best Value Funds?
Ans. Value funds allocate approximately 95% of their total assets to equity and equity-related instruments, across all market capitalizations.