Enhanced Value index funds topped the return chart past year. Here are their top stocks bet
Value factor tends to be overweight on PSUs and PSBs in India. PSUs and PSBs in Financial Services, Commodities, and Energy sectors have done exceedingly well over the last couple of years
Value style of investing have made a strong come back in the last two years. For instance, Motilal Oswal S&P BSE Enhanced Value ETF is the second top performer among the equity categories in the last one year and it has delivered an absolute return of 50 percent. Within the equity categories, PSU Bank ETFs topped the chart. Mahavir Kaswa, Head of Research – Passive Funds, Motilal Oswal AMC says,” Value had been a stark underperformer throughout the 2010s as Growth stocks were in favour across markets. However, as recovery started after the Covid-19 crash, value has made a strong comeback. In the case of Indian markets, value factor tends to be overweight on PSUs and PSBs. PSUs and PSBs in Financial Services, Commodities, and Energy sectors have done exceedingly well over the last couple of years”.
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However active value funds lag behind the passive funds in the last one year in terms of return. Index fund and ETF offered by Motilal Oswal AMC tracking S&P BSE Enhanced Value Index delivered 50-51% returns while active value funds category clocked an average return of 28% last year. The S&P BSE Enhanced Value Index aims to capture top 30 stocks in the S&P BSE LargeMidCap Index with the most attractive valuations, as measured by P/E, P/B, and P/S ratios. Here, the index name uses the term 'enhanced value', but there is no distinction between the value and the enhanced value. Here are the top 10 stocks holdings of the S&P BSE Enhanced Value Index. Data as of September 29, 2023. Source: ACEMF and BSEindia.
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NTPC Sector: Power No. of active schemes held the stock: 233
