Value funds lead returns tally, outperform other equity categories

Value-oriented funds have outperformed other equity categories in recent months, after having lagged them over longer time-frames. 

In the April-June 2020 quarter, value funds have delivered average returns of 21.41 per cent — outperforming large-cap, mid-cap, and small-cap funds.

Fund managers say the asset class looks attractive at the current juncture, and offers attractive risk-reward proposition to investors.

“Value, as a strategy, took the backseat for a long time. This resulted in an ever growing bias towards high-growth firms, regardless of valuation,” said Daylynn Pinto, senior fund manager (equity), IDFC Asset Management Company.

“With a gradual revival in the economy,