Is It The Right Time To Invest In Value Funds?

Value is a precious asset and more so given today’s precarious times. Having faith in your investment to create long-term wealth might be jolted due to a slump in the global markets, but it also presents the right opportunity to devote your finances to companies with good fundamental values. Vardan Pandhare decodes the importance of having a value fund in your portfolio

"If you are shopping for common stocks, choose them the way you would buy groceries, not the way you would buy perfume." 
- Benjamin Graham 

Benjamin Graham, a renowned influencer investor of the 20th century, was the one who created the concept of value investing. Over the years some of the most successful investment gurus, including Warren Buffet, have used the same principle to create enormous wealth. However, with the emergence of financial syndicates offering various investment avenues, value investing is now not just limited to individual investors. In the last decade, mutual funds too have been following the principles related to picking value funds. In fact, in the post-pandemic era, market participants have started speaking more about fundamentals and valuations. Such discussions will only grow in the coming days since the market is presently grappling with a lot of uncertainties. No wonder then that value funds are back in the reckoning with several seasoned and new-age investors who want to learn more about it. To be fair, the last two years were kind for value investing admirers as only a handful of heavyweight stocks pulled the market higher. It was the time when value fund managers and experts were grumbling that no one was paying attention to valuations.