Value funds make a comeback: These mid-cap and small-cap stocks are their favourites
In the last 1-year period, value funds have given a return of 7.4 percent, as opposed to 2.4 percent by diversified funds. Value strategy tends to outperform growth and momentum strategies during rising interest rates and slower economic growth such as the current one
After years of underperformance, value funds are back. Their performance in the last two years has been impressive, having outperformed their large-cap, mid-cap, small-cap and flexi-cap funds, on an average, over the last one year. Value fund managers select stocks that are trading for less than their intrinsic or book value. They look at stock's price-to-earnings (P/E) ratio or price-to-book (P/B) ratio to identify those stocks. Peeyush Pandey, a Bhopal based mutual fund distributor says “Value stocks tend to exhibit slower growth and one has to wait for long term of their value to be unlocked. Value strategy is also cyclical in nature. It tends to outperform growth and momentum strategies during rising interest rates, and also when the economy is going through rough paces”. Here are the most popular mid-cap and small-cap stocks among 19 value focused mutual funds. Data as on November 30, 2022. Source: ACEMF
2/14
CESC No. of value funds that hold the stock: 7 A sample of value funds that hold the stock: JM Value, UTI Value Opportunities and ITI Value fund
3/14
Lupin No. of value funds that hold the stock: 7 A sample of value funds that hold the stock: ITI Value, Quantum Long Term Equity Value and Axis Value fund
4/14
The Federal Bank No. of value funds that hold the stock: 6 A sample of value funds that hold the stock: Aditya Birla SL Pure Value, HSBC Value and Axis Value fund
Aditya Birla Fashion and Retail No. of value funds that hold the stock: 5 A sample of value funds that hold the stock: JM Value, UTI Value Opp and HDFC Capital Builder Value fund
6/14
Bharat Forge No. of value funds that hold the stock: 5 A sample of value funds that hold the stock: IDBI Long Term Value, JM Value and IDFC Sterling Value fund
7/14
Cholamandalam Financial Holdings No. of value funds that hold the stock: 5 A sample of value funds that hold the stock: Templeton India Value, Tata Equity P/E and Nippon India Value fund
8/14
Coromandel International No. of value funds that hold the stock: 5 A sample of value funds that hold the stock: Union Value Discovery, DSP Value and Axis Value fund
Jindal Steel & Power No. of value funds that hold the stock: 5 A sample of value funds that hold the stock: IDFC Sterling Value, Aditya Birla SL Pure Value and HSBC Value fund
10/14
Oberoi Realty No. of value funds that hold the stock: 5 A sample of value funds that hold the stock: HSBC Value, Aditya Birla SL Pure Value and IDBI Long Term Value fund
11/14
Birla Corporation No. of value funds that hold the stock: 4 A sample of value funds that hold the stock: HSBC Value, Aditya Birla SL Pure Value and ICICI Pru Value Discovery fund
12/14
Bosch No. of value funds that hold the stock: 4 A sample of value funds that hold the stock: IDFC Sterling Value, HSBC Value and ITI Value fund
13/14
Container Corporation Of India No. of value funds that hold the stock: 4 A sample of value funds that hold the stock: Indiabulls Value, IDBI Long Term Value and Canara Robeco Value fund
14/14
Crompton Greaves Consumer Electricals No. of value funds that hold the stock: 4 A sample of value funds that hold the stock: Templeton India Value, IDBI Long Term Value and UTI Value opportunities fund
