Value Funds

Fund to be raised via 10-yr bonds; another Rs 2K cr to come via 18-month papers

These funds had, on an average, generated returns of -7.4% during past three months, compared with negative returns of 8-10% by large-cap, mid-cap and small-cap funds

A safer approach is to invest in both value and growth style funds as performance alternates

During the past one year, value funds have given average returns of 50.79 per cent, higher than large-cap and flexicap schemes

REITs, financials, materials, and energy have remained at the lower end even when real returns are sorted by 10- and 15-year timeframes

Data from MF Explorer shows that maximum return generated by value funds the past one year is 96% and average is 59%

'Invest with a 7-10-year horizon. Allocate 20-30 per cent of your equity portfolio to them,' says Vishal Dhawan, chief financial planner, PlanAhead Wealth Advisors

Both value and dividend yield funds benefit from market downturns by investing more aggressively on such occasions

In the April-June 2020 quarter, value funds have delivered average returns of 21.41 per cent - outperforming large-cap, mid-cap, and small-cap funds

Have a horizon of 5-7 years and limit allocation to 15-20% of equity portfolio

Market observers also attribute the underperformance of value and contra funds to the polarised market conditions

One reason why most categories of active funds, and not just value funds, have fared poorly has been the concentrated nature of market performance

There are certain phases in the market when growth stocks do well and others in which value stocks outperform

According to Value Research, the biggest loser among value funds now are those with one-year tenor