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It's advisable to invest in value funds for balanced portfolio, say experts

Have a horizon of 5-7 years and limit allocation to 15-20% of equity portfolio

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While selecting a value fund, go with a fund manager who has been handling this style for a long time.

Sanjay Kumar Singh New Delhi
The Sensex has bounced back 20.78 per cent over the past three months. The value fund category, which has been underperforming for a long time, has also risen 16.3 per cent on average, sparking hopes it may be poised for a rebound. Investors are asking whether the rally in these funds will sustain and if this is a good time to take exposure to the category.

Value funds have narrowed down the performance gap vis-à-vis their growth peers in recent times. “The gap between value and growth funds narrowed, both during the fall and the bounce-back over the past few months.