Value funds shine amid broad-based rally as 'growth' trade fizzles out

Data from MF Explorer shows that maximum return generated by value funds the past one year is 96% and average is 59%

A broad-based rally in the Indian equity markets have helped value-focused funds deliver superior returns in the last one year. Value funds were out of favour as investors piled on to ‘growth’ stocks even at lofty valuations in the pre-pandemic world, leading to sharp polarisation in the stock market returns.

But in the last one year, value funds have started delivering returns as investors have shifted their stocks away from growth stocks to ones that are available at attractive valuations.

Mutual fund (MF) industry players believe that even now there is enough value in the market.

“We believe value is