Value funds are outperforming but don't chase them yet, say experts

A safer approach is to invest in both value and growth style funds as performance alternates

Value funds are on the comeback. With a one-year category average return of 32.1 per cent, funds pursuing this style have beaten the 28.8 per cent return produced by flexi-cap funds (which have the freedom to invest anywhere) over the same period.

Earnings revival in value stocks

Over years, value-oriented sectors and stocks were ignored by the market due to lack of earnings growth and leveraged or stressed balance sheets. “After several years, earnings in many of these sectors and companies surprised investors last year. Their valuations were attractive relative to the rest of the market. This combination led to