The specialty of a value fund is that the fund manager keeps such stocks in it which did not move in the market earlier but are likely to move later. In this, we take such companies whose work can do well in the future.
Know about Axis Value Fund
Axis Mutual Fund has launched Value Fund. Its New Fund Offer (NFO) was launched on 2nd September and its subscription will close on 16th September. Jinesh Gopani will manage this scheme. Experts have different opinions about whether to invest in this fund or not.
Ashwin Patel, Head Product, Axis Mutual Fund, says, “This fund has been designed with the intention of expanding the scheme coverage of the fund house. More and more investors can join it. Keeping in mind the interests of the investors, this product has been launched for the long term. As time goes, so should the investment. Keeping this in mind, Value Fund has been launched with a comprehensive strategy. The aim is to pass on the benefits to more investors.
Axis Mutual Fund has a different value fund from the kind of value schemes available in the market these days. There are many types of value investing plans in the market, apart from that, the work of a value fund is different. Ashwin Patni says, in Value Fund, the formula of Hybrid Fund has been taken, in which the benefits of both Growth and Value Fund are available. This fund does not focus on cheap companies and does not wait for that fund to get recognition in the market. Apart from valuation, there are many other factors on the basis of which stocks are selected for this fund.
What do experts say
Despite this statement of Axis Mutual Fund, experts say that investors should give some time now. Before investing in this fund, one should know about the scheme. Some experts are calling this value fund good considering the fund manager Jinesh Gopani. The fund’s manager Jinesh Gopani has previously managed Axis Focus 25 Fund. This fund has given a lot of benefit to the people in a short time. In this sense, if Gopani is going to manage the Value Fund, then it could be a good thing for investors. If you want to know about the returns of value funds, then one has to look at the returns of value funds already listed in the market. Based on their returns, accurate information can be gathered about Axis Value Fund.
Products like UTI Value Opportunity Fund, ICICI Prudential Value Discovery Fund, Envesco India Contra Fund, Nippon India Value Fund and Kotak India EQ Contra Fund are available in the market as of today. These are all value funds which are giving good returns. All these funds have given CAGR returns of 13-15% over a period of 3 years. If we look at 7 years’ account, then these value funds have given returns of 12.5 to 15 percent to the customers.
Advantages of Value Funds
The specialty of a value fund is that the fund manager keeps such stocks in it which did not move in the market earlier but are likely to move later. In this, we take such companies whose work can do well in the future. Value Funds tend to rise at a lower rate than other funds, and their uptrend in the market is seen to be slow. But in the long run, its value stocks work and the entire slowdown behind it is compensated in a jiffy. The biggest thing about this fund is that when the market starts falling, then value stock funds start doing well. These funds give good returns to the investors.
In such a situation, value funds should also be taken by those people who have the habit of being patient. Those who are not troubled by the downfall of the market and those who hope to get something good in the future. Value fund stocks do well on days when the market is down. Therefore, when the market falls, when everyone is upset, then the value fund holders expect to get the benefit.
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