Value funds make a comeback after four years on broad-based equity rally

During the past one year, value funds have given average returns of 50.79 per cent, higher than large-cap and flexicap schemes

Value funds, which fell out of favour in 2017, are slowly gaining ground thanks to the broad-based rally in the equity markets. In the last one year, value funds have delivered average returns of 50.79 per cent, which is higher than what large- and flexi-cap schemes provided.

Value funds invest in stocks and sectors that are not in demand but have long-term growth potential and are also available on the cheap. From 2017 to March 2020, however, only growth and quality stocks were in the limelight as the Indian economy slowed and performance of value funds deteriorated.

After the sharp correction in