Mutual funds use various strategies to grow wealth. Some funds choose to invest in tried and tested large-cap stocks while others choose to invest in high-quality debt and fixed income securities.
But certain mutual funds stand out for their unique investment approach and unorthodox strategies. These include the likes of value funds, contra funds, and more.
Believe it or not, this phrase, “If you can’t handle me at my worst, you don’t deserve me at my best”, applies to a value fund. In this story, we’ll help you understand the underlying principles of a value fund.
Important: This blog is meant to educate readers and the information furnished here is not to be construed as investment advice from Cube Wealth.
A value fund invests in undervalued stocks with the potential to deliver long term profits. The assumption is that these stocks are undervalued due to deficiencies in the market or investor ideology.
Assuming the market realises the potential of these stocks, the price will go up and the value fund, as a result of investing in these stocks before the purple patch, will generate lucrative returns.
The TSLA stock is one of the more popular examples of the value growth story. It traded for $4.56 on 13th January 2012. As of 08th January 2021, TSLA is valued at $
Top 5 Reasons To Try Our Powerful Investment App!
Schedule a call based on your convenience. And get an expert to help you invest.
Want the best
investment blog delivered straight to your inbox?
Grow your money without wasting time
on stock picking, poring over excel sheets, financial news, analyzing market trends, tracking the Sensex, researching company fundamentals, comparing mutual funds, reading financial reports, trying to predict the future & losing your sanity!
