Top Rated Value Funds in 2024 - Best Value Funds

Returns Calulator Based on Annualised Returns

Investment Type

Monthly SIPLumpsum

SIP Amount

Check the Returns of Your Investment in

Check the Returns of Your Investment in

Total Investment

₹ NaN

Returns

₹ 0

(NaN%)

Maturity Value after -

₹ 0

Add to Cart Invest Now

Disclaimer: Mutual fund investments carry market risks; read all scheme-related documents carefully. Past performance does not guarantee future returns.

About Value Funds

A Value Fund focuses on stocks that are undervalued compared to their intrinsic value. Value Funds choose stocks using the value-investing approach. Investors choose this fund to leverage the long-term benefit of investing in less expensive but high-return potential stocks. Here are the key features of Value Funds:

The fund manager of this equity mutual fund selects stocks that are trading at a discount to their true value because of certain inefficiencies.
These funds often take a bottom-up approach to investing and prioritizing individual stock selection over market timing. They use basic indicators like book value, earnings, dividends, and other financial ratios to evaluate companies.
Value Funds may face difficulties when interest rates are low. Growth-oriented stocks typically do better in these periods. This may affect the fund's short-term performance.

Value Investing can be an effective strategy, but it's important to understand that these stocks could stay undervalued for a prolonged period of time. Value Funds might therefore go through periods of underperformance, so you need to be ready to tolerate the same.

Value Investing is a strategy used by some of the world's most successful investors, including Warren Buffet. It involves choosing stocks that the market may overlook but are trading below their intrinsic value. It has the potential to provide long-term capital appreciation. Value funds offer several benefits:

Investing in a Value Fund can effectively diversify your portfolio. Because the companies in these funds are distributed throughout multiple industries, your portfolio may achieve a good risk-return balance.
Value stock companies typically have lower valuation multiples than growth stocks (e.g., price-to-earnings or price-to-book ratios). This may increase the attraction from a valuation perspective, particularly if you prioritize purchasing assets at fair market value.
There is a long history of success with value investment. Legendary investors like Warren Buffett and Benjamin Graham have made substantial returns by sticking to the value investing strategy.

It's important to remember that value investing carries risks and that success is not guaranteed, just like any other investment method. The dynamics of the market might shift, and value stocks may continue to be undervalued for extended periods. When deciding on Value Fund investing, you should carefully consider your time horizon, financial goals, and risk tolerance.

Value Investing can be a great choice if you are comfortable with these factors:

Value Funds are ideal for those seeking long-term growth while prioritizing stability. Remember that value funds take time to produce true rewards, so you should be prepared for progressive growth in your investments.
Value Funds' performance can be impacted by market and economic factors. So, you should be aware of the wider market dynamics.
Investing in discounted shares carries some risk even though value investing tries to protect against losses. These stocks might face difficulties and cannot achieve their true value rapidly. Make sure your level of risk tolerance is compatible with the possible volatility of Value Funds.
These funds can be a better option if you can deal with short-term fluctuations in the market and have a longer time horizon. Although short-term market fluctuations are uncertain, discounted stocks are expected to increase in value over time.

Keep in mind that there is always risk associated with investing in these funds and that diversity is essential to creating a well-rounded portfolio. Depending on your overall financial plan, it's good to have a varied mix of assets, which may include a combination of growth funds, value funds, and other investment options.

Here are some considerations to find out if Value Funds are right for you:

Fund managers choose value stocks with low market prices compared to their actual value. These funds gain their true value at a steady and slow rate as compared to growth funds. So, you need to be patient.
Value Investing is typically seen as less speculative if compared to other investing approaches. These may be suitable if you have a conservative to moderate risk tolerance and want investments that prioritize stability and downside protection.
In value investing the selected stocks are temporarily undervalued or experiencing challenges. You can choose value funds if you feel comfortable defying market trends and think there is a chance for sentiment to shift.

Value Funds are a great way to improve portfolio diversification. Because they are chosen after a thorough evaluation. To ascertain whether the fund is meeting your investing objectives, always examine the fund's historical performance and its associated expenses.

FAQs

Value Funds operate by identifying and investing in stocks that are currently undervalued in the market but have strong fundamentals and a good potential for growth. Fund managers pick these stocks based on extensive research, aiming to benefit from their eventual market correction.

These funds are typically invested across various sectors, aiming to pick undervalued stocks from a wide range of industries. This approach helps in diversifying the investment portfolio and limits exposure to stocks with significant risk-reward ratios.

Value Funds have the potential to multiply your wealth significantly and maximize portfolio value over the long term. They aim for high growth by investing in stocks that are expected to appreciate in value once the market corrects their undervaluation.

No, Value Funds are not tax-free. Like other mutual fund investments, the profits earned from Value Funds are subject to capital gains tax, depending on the duration of the investment.

For Value Funds, if you sell your investment after a year, gains up to ₹1 lakh are exempt from tax. Any gains above this limit are taxed at 10%. For investments sold within a year, the profits are taxed at 15%. Additionally, dividends are taxed according to the your income tax slab, with TDS applicable on dividend incomes exceeding ₹5,000 in a financial year.

When looking for a value fund, it's important to consider the fund's track record, management's experience, and investment approach. It's important for you with a long-term investment horizon to consider Value Funds, as they invest in undervalued assets expected to perform well in the long run. Diversifying your holdings and assessing your risk appetite are also crucial steps in selecting the right Value Fund.

No, you don’t need a demat account to invest in Value Funds. You can easily invest through a mutual fund platform or directly with the asset management company offering the fund. This simplifies the process, allowing for direct investment without the need for a demat account.

Both lump sum and SIP (Systematic Investment Plan) have their advantages in Value Funds, depending on your financial situation and goals. SIPs allow for disciplined investing over time, potentially mitigating the impact of market volatility. Lump sum investments might be suitable if you have a significant amount of money to invest and want to capitalize on the current undervaluation of stocks.

To start an Value Fund SIP online, follow these 4 steps:

Open Demat Account
Choose the Value Fund you wish to invest in.
Choose the SIP option, specifying the amount and SIP date
Set up an auto-pay via bank account to automate the SIP payments

Yes, you can redeem your investments in Value Funds at any time. However, it's advisable to view these investments with a long-term perspective, as value investing often requires time for the market to recognize the true value of the undervalued stocks. Be mindful of any exit loads that might apply.

Value Funds don't usually have a lock-in term like some tax-saving investments do. This gives you the flexibility to manage your investments according to your financial needs and market conditions. However, value investing is best suited for long-term goals due to the nature of the investment strategy.

Value Funds, like all equity investments, carry market risks. The main risks include the possibility of selecting stocks that remain undervalued for extended periods or do not appreciate as expected. Additionally, market volatility can affect the fund's performance. Thorough research and a long-term investment horizon can help mitigate these risks.

Of course, no investment is completely risk-free, and Value Funds are no different. Although their goal is to buy stocks that are cheap and have a chance to go up in value, they are still vulnerable to market risks and instability. To handle the risks that come with Value Funds, it's important to do your research, choose a diverse strategy, and spend for the long run.

*All securities mentioned on this website are exemplary and not recommendatory.

We are bullish on India, we are bullish on India's prospects to be one of the largest economies in the world. We believe that the stock market provides a unique opportunity for all of India's traders and investors to participate in the growth story of the country.

Yet, most investing & trading platforms in India have remained more or less the same over the past decade. Times have changed and retail traders and investors have become smarter about managing their trades and money. Modern traders & investors require an online trading platform that helps them keep up with the technological advancements of our time.

That's why we're building Dhan - to help you trade, to help you invest, and to help you participate in India's growth stock via the stock market with awesome features and an incredible experience.

We are doing so by giving you access to not just one but 6 products within the Dhan ecosystem:

Dhan App: The only online trading app you need for buying and selling equity, futures, options, commodity, and currency.
Dhan Web: Trade on the big screen across segments with our web trading platform.
Options Trader App: A dedicated option trading app built for India's F&O traders.
Options Trader Web: Love big screens and F&O trading? Use our web option trading platform.
Dhan + TradingView: The magic of Tradingview charts for free with the Lightning-Fast experience of Dhan on tv.dhan.co.
Connect to TradingView: Our Tradingview broker integration allows you to trade in Stocks, Futures, and Commodities directly from tradingview.com via Dhan.

This means that with Dhan, you'll be able to start:

Lakhs of users already trust Dhan for their online stock trading and investing needs. Dhan is growing rapidly because of the love we receive from SuperTraders and Long-Term Investors who acknowledge that the platform is innovating for them, building super useful features that help them do everything from investing in stock market to trading F&O like a pro on the Tradingview charts and much more.

While we are growing, we will always remember why we started building in the first place - you. Our user-first approach will always be at the heart of our philosophy. Come join us on this incredible journey!

Try it out, you can close your account at anytime using this link.

SEBI Stock Broker Registration No: INZ000006031 | Depository Participant (CDSL) ID: IN-DP-289-2016
Exchange Membership No. : NSE: 90133 | BSE: 6593 | MCX: 56320
Registered Office: 302, The Western Edge I, Off Western Express Highway, Borivali East, Mumbai - 400066, Maharashtra, India.
Corporate Office: 302, The Western Edge I, Off Western Express Highway, Borivali East, Mumbai - 400066, Maharashtra, India. Customer Care: 9987761000.

Details of client bank account

For any query / feedback / clarifications, email at help@dhan.co.

In case of grievances for any of the services rendered by Moneylicious Securities Private Limited, please write to grievance@dhan.co (for NSE, BSE and MCX) or grievancedp@dhan.co (for Depository Participant). Please ensure that you carefully read the Risk Disclosure Document as prescribed by SEBI, our Terms of Use and Privacy Policy. Compliance Officer: Mr. Manish Garg and Mobile: 8655740961 Email: complianceofficer@dhan.co To lodge your complaints using SEBI SCORES, click here.

Disclaimer: All communications with the client in the chat section are for support purposes only, and any commitments or statements made by the agent (human or virtual) shall not be binding on the company.

DHAN is a brand owned by Moneylicious Securities Private Limited. All DHAN clients are registered under Moneylicious Securities Private Limited. Clients are advised to refer to our company as Moneylicious Securities Private Limited when communicating with regulatory authorities.

Procedure to file a complaint on SEBI SCORES: Register on SCORES portal. Mandatory details for filing complaints on SCORES: Name, PAN, Address, Mobile Number, E-mail ID. Benefits: Effective Communication, Speedy redressal of the grievances

Disclaimer: Investment in the securities market are subject to market risks, read all the related documents carefully before investing. Brokerage will not exceed the SEBI prescribed limit

Attention investors:

Stock brokers can accept securities as margins from clients only by way of pledge in the depository system w.e.f September 01, 2020.
Update your e-mail and phone number with your stock broker / depository participant and receive OTP directly from depository on your e-mail and/or mobile number to create pledge.
Check your securities / MF / bonds in the consolidated account statement issued by NSDL/CDSL every month.

Note: As a policy we do not give stock tips or recommendations and have not authorized anyone to give this on behalf of us. If you know anyone claiming to be a part of Dhan / Moneylicious / Raise or our associate companies or partners and offering such services, please report us on help@dhan.co. Important Information for Investors: To prevent unauthorized transactions in your trading / demat account, do not share your account details, credentials or any personal details with anyone. Keep your mobile number updated with your Stock Broker, Depository Participant and ensure that the same is registered with Stock Exchanges, Depository and KRAs. You will receive alerts and information on your registered mobile number / email for debit and other important transactions in your demat account directly from CDSL / Exchange on the same day. KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (Stock Broker, DP, Mutual Fund, etc.), you need not undergo the same process again when you approach another intermediary. No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries for refund as the money remains in investor's account. This is issued in the interest of investors.

Moneylicious Securities Private Limited also known as Dhan is only an order collection platform that collects orders on behalf of clients and places them on BSE StarMF for execution. Client expressly agrees that Dhan is not liable or responsible and does not represent or warrant any damages regarding non- execution of orders or any incorrect execution of orders with regard to the funds chosen by the client or due to, but not being limited to, any link/system failure, delay in transfer of the funds on account of any unforeseen circumstances/issues in the banking system/payment aggregators or any other problems that may result in a delay in crediting the funds into the BSE Star MF's bank account.

Mutual fund investments are subject to market risks, read all scheme related documents carefully before investing. Dhan is not a distributor or agent of any mutual fund. Mutual Funds are not exchange-traded products. Any related disputes will not have access to the Exchange-investor redressal forum or arbitration mechanism. For other disclaimers please refer https://dhan.co/advertisement-disclaimer/

Download client registration documents (Rights & Obligations, Risk Disclosure Document, Do's & Don'ts) in vernacular language: BSE | NSE | MCX

Kindly, read the Advisory Guidelines of BSE | NSE | MCX for investors as prescribed by the exchange with reference to their circular dated 27th August, 2021 regarding investor awareness and safeguarding client's assets

Value Mutual Funds

Best Value Funds to Invest in 2024

Returns Calulator Based on Annualised Returns

About Value Funds

What are Value Funds

Advantages of investing in Value Funds

Is it good to invest in Value Funds

Who should invest in Value Funds

Explore Equity Funds by Types

Explore Mutual Funds by Types

Popular Funds

FAQs