Value investing relates to the idea of picking stocks that are to seen to be offered at a price lower than their intrinsic value. And such an investment idea is likely to augur well for the investors given the current stock market landscape i.e. currently going through correction phase and is still not deemed to be offering the right pricing for the investors to take a dig in.
Nonetheless, if investors take a cautious approach when they still are facing huge difficult in making the right choice and go by the value style of stock picking, handful of gains can be made in the medium to long term. Here in some of the funds have been introduced lately taken into consideration the investment climate in the Indian stock markets.
The value fund by different fund houses usually have the approach to take an exposure in stocks that currently have turned out of favour such as the case of oil companies, PSBs etc but in the matter of time have the potential to mean significantly in future. Investment in value fund is usually in stocks that the fund managers deems to be currently undervalued but which over the course is likely to gain substantially.
Another upside of these funds is that the downside risk in these fund types is limited.
These funds take calls in beaten down sectors to return superior returns for the investors. Some of the examples include Aditya Birla Pure Value Fund, Tata Value Fund Series I, Parag Parikh Long Term Equity Fund etc.