Understanding PNB MetLife’s Value Fund Strategy with CIO Sanjay Kumar

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1.    What is PNB MetLife Value Fund?

The PNB MetLife Value Fund is a new fund launched by PNB MetLife. It is an actively managed equity fund available under PNB MetLife’s Unit Linked Insurance Plans (ULIPs).  Designed to help customers build long-term wealth along with a life cover, the fund follows a value investing strategy by identifying fundamentally strong companies that are currently undervalued in the market. The new fund is open for subscription from July 15 to July 28, 2025, at an initial Net Asset Value (NAV) of ₹10.  After the subscription period, the fund will be available for investment at market-linked NAVs.

2.    Who should invest in PNB MetLife Value Fund?

PNB MetLife Value Fund is best suited for those who:

• Believe in value investing and have the patience to wait for the market to catch up with a company’s true potential.
• Can handle market volatility and take calculated risks for potentially higher future returns.

3.    How does the PNB MetLife Value Fund stand apart from existing funds in the market?  

The PNB MetLife Value Fund focuses on identifying quality companies that are trading below their true value. These companies are often undervalued or overlooked by the broader markets, likely due to short term factors.  Unlike trend driven or overhyped investments, the fund stays disciplined in its value approach, aiming for long term growth.

4.    What benefits does it offer to investors and customers ?

The PNB MetLife Value Fund is designed to offer a thoughtful balance of growth potential and protection and brings a range of benefits.

·         Exposure to fundamentally strong businesses through a value-based investment strategy

·         Active fund management backed by in depth research and dynamic asset allocation

·         Diversification across key sectors to help manage risks

·         A margin of safety, as investment is made at lower valuation or companies offering attractive dividend yields.

·         Life cover is  woven into our ULIP plans, ensuring holistic financial protection.

5.    Which sectors or types of companies will the fund typically invest in, and Why?

The fund will invest in a diversified mix of sectors, including Oil & Gas, Financial Services, Metals & Minning, Power, Construction Materials, Services, Fast Moving Consumer Goods, Media Entertainment & Publication, Construction, Automobiles & Auto Components, Chemicals and so on.

PNB MetLife Value Fund focuses on companies that are currently undervalued by the market — meaning their stock prices do not reflect their true potential or business strength. These companies often fall into one or more of the following categories:

·         Cyclical Industries: Businesses that are temporarily out of favor due to economic cycles (like auto or construction during a slowdown).

·         High-Quality Companies: Firms with strong fundamentals that are overlooked by investors.

·         Disrupted by Technology or Regulations: Companies that the market believes are being negatively affected by new technologies or changing rules — but still have long-term potential.

·         Misunderstood or Ignored: Businesses that are not getting enough attention from investors, often because their models are complex or not well known.

The fund would use deep research, including on-the-ground checks and proprietary tools, to find these hidden opportunities. It looks for companies with a strong competitive edge (a "moat") and sustainable business models.

6.    What kind of investor would this fund be most suitable for? Would it be a good option for first time investors as well?

PNB MetLife Value Fund is most suitable for investors who align with the principles of value investing and have a medium to long-term investment horizon. It is ideal for the long-term wealth builders who are patient and willing to wait for the market to recognize the intrinsic value of undervalued companies and aiming for capital appreciation over 5–10 years rather than short-term gains. While experienced investors may naturally align with this approach, disciplined first time investors looking for long term growth can also benefit from the fund’s strategy.

7.    What is value investing?

Value investing is a disciplined investment approach that focuses on identifying companies whose market prices are lower than their intrinsic worth. It combines quantitative metrics such as Price-to-Earnings (P/E) and Price-to-Book (P/B) ratios, and qualitative factors like management quality, sustainable competitive advantage, and capital efficiency. This strategy aims to deliver long-term returns by investing in businesses with enduring value rather than following market trends.

8.    Can you explain what actively managed fund means?

An actively managed fund means that the fund’s investments are selected and adjusted by a professional fund manager or investment team, rather than simply following a fixed index or formula. Unlike passive funds that aim to match the performance of the benchmark index, active funds aim to beat it. The decisions are based on fundamental analysis, market trends, company visits, and proprietary tools. Since it is structured not to mimic the benchmark, the fund’s holdings are not fixed. The manager can reorient portfolio stance based on changing market conditions, valuations, or company performance. This allows the fund to adapt quickly to opportunities or risks.

9.    How has PNB MetLife’s investment strategy evolved to keep pace with changing market conditions, and how does value fund align with that strategy?  

At PNB MetLife, we dynamically adjust portfolios based on market conditions, sectoral shifts, and valuation trends. We utilise multiple proprietary research tools along with business moat analysis and corporate governance checks to identify high-potential companies while minimizing the risks. This research-driven approach has become central to our fund management strategy, especially in volatile or uncertain markets.

The Value Fund targets undervalued sectors and companies, especially during cyclical downturns or periods of market pessimism. This aligns with PNB MetLife’s philosophy of identifying mispriced opportunities and capitalizing on long-term growth potential. By emphasizing margin of safety, lower volatility, and fundamental strength, the Value Fund supports PNB MetLife’s goal of delivering sustainable, risk-adjusted returns.

Disclaimer:

IN THIS POLICY, THE INVESTMENT RISK IN INVESTMENT PORTFOLIO IS BORNE BY THE POLICYHOLDER. The unit linked insurance products do not offer any liquidity during the ­first ­five years of the contract.

PNB MetLife Value Fund (SFIN: ULIF03615/07/25VALUEFUNDS117) is an actively managed fund. The fund aims to generate long-term capital appreciation by actively investing in companies which are attractively valued. The companies that the fund seeks to invest in would typically have lower earnings or book value multiple relative to either broader markets, their comparable peers, or their own history. The relative valuation-based strategies are best suited for individuals with very high risk tolerance and long-term investment goals

Moneycontrol journalists were not involved in the creation of the article.