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
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 being beaten by the market for several years, value funds are back. Fund houses such as DSP, ITI, Canara Robeco, Axis and Quant have launched their value funds after the pandemic struck. And this time, managers are being more careful in building their portfolios.
Here are the key changes in the portfolio of 17 value funds over the last one month
The category can underperform for prolonged periods of time and by a significant margin
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