What is a Value Fund?
A Value Fund is an open-ended equity scheme that follows a value investment strategy. Value Funds have the “flexibility” to take exposure across market capitalization.
Value Investing is a long-term investment strategy that focuses primarily on the true value of a business as it invests in stocks where the current market price is lower than the stock's intrinsic value. A simple way to understand this is that it is like ‘buying at a discount’.
How does a Value Fund work?
Value Funds primarily invest in companies that are traded less than their intrinsic value and take exposure across market capitalization with a benchmark agnostic approach. It primarily focuses on factors such as:

- Intrinsic Value:
This represents the actual value of businesses in the market. - Margin of Safety:
Margin of safety is achieved when securities are purchased at prices sufficiently below the underlying value.
E.g. A company with an Intrinsic value of ₹100 is considered to have a good buffer when you buy it at a Price of ₹50. This gives a margin of safety equivalent to 50%.
Why invest in a Value Fund?
Here are some FAQs about Value Funds
- Value Fund takes a flexible approach while taking exposure across large-cap, mid-cap as well as small-cap businesses. Therefore, it allows investors to diversify across market capitalization and provide long-term wealth creation opportunities.