Mutual funds are available in a variety of investment styles. This investing technique enables the fund manager to efficiently invest the scheme's corpus. The funds are labeled Growth Funds, Value Funds, and Contra Funds based on their investment strategy.
When an investor uses a value investing approach, he seeks companies, that are undervalued and trade for less than their intrinsic values. The intrinsic worth of a firm is estimated by taking into account its financials, management team, competitive position, business model, and other factors. If a company's market worth is less than its inherent value, it is said to be valuable. Simply put, a Value Fund is an equity fund.
IDFC Sterling Value Fund – Direct Plan-Growth
As of 18 January 2022, the fund invests in an Indian stock account for has around 97614%, with large-cap stocks accounting for 28.35%, mid-cap stocks for 16.68%, and small-cap stocks accounting for 38.69%. The NAV of the fund is INR 101.86. The fund offered a promising return of 66.96% in one year, which is almost close to double its category average, 38.15%. In addition, it is the highest return offered by any Value Fund in its category over one year period.
The fund's Standing and the CRISIL Rating
Fund size is INR 4437.46 Cr, which is almost 6,93% of investment in the category, which is huge. The expense ratio of the fund is 0.88%, which is nowhere close to its category average of 1.18%. The fund is rated highly risky on the risk meter by the CRISIL. Also, it is ranked Number One by the CRISIL with a 5-star rating as of September 2021. The fund has consistently offered higher annualized returns than the category average for the past years. The fund is consistently delivered a promising return on the investment over the years, and the return is best among its peers.
Objective, Risk, and Who should invest
It is a value fund with an active stock selection technique that mostly invests in mid and small-size firms. The Scheme's investment objective is to achieve capital appreciation via a diversified portfolio of equities and equity-related assets by employing a value investment technique.
Investors with superior awareness of macrotrends who wish to make targeted bets for greater returns than other Equity funds should make their investment in the fund. At the same time, these investors should be prepared for moderate to large losses in their investments, even if the general market is performing well.
It is appropriate for you as an investor if your long-term objective is to build wealth and you invest primarily in equities and equity-related securities using a value investing strategy. The scheme is appropriate for an investment horizon of at least 5 years.
Performance and Returns
Returns Over The Years
|Period Invested for||₹10000 Invested on||Latest Value||Absolute Returns||Annualised Returns||Category Avg|
|Period Invested for||₹1000 SIP Started on||Investments||Latest Value||Absolute Returns||Annualised Returns|
Note - NAV as on 18 January 2022