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Bandhan Sterling Value Fund - Direct Plan

An open ended equity scheme following a value investment strategy

EquityInception Date:07/03/2008
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What is a Value Fund?

Imagine finding hidden gems in the stock market—companies whose true worth isn’t reflected in their current stock prices. This is the core of value investing. It’s like discovering a diamond in the rough, waiting for the market to recognize its real value. Let’s explore how value funds work and how they can enhance your investment strategy.

Value funds are mutual funds that invest in the stocks of undervalued companies. For many companies, their stock price doesn’t reflect their actual growth potential. The intrinsic value of a company is determined by factors such as financial status, business model, management, market factors, and competition. When a company’s intrinsic value exceeds its market value, it is considered to have 'value.'.

The idea behind value funds is that some companies are undervalued due to market conditions. When the market corrects, their stock prices rise, offering investors the potential for gains. Skilled value fund managers identify these companies to create potential returns.

Value funds can diversify your portfolio. While they may be less volatile in certain market conditions due to their undervaluation, they still carry risks. However, they also have the potential for strong long-term returns.

When investing in value mutual funds, consider the following factors:

  • Investment Horizon: Value investing suits long-term investors, as stocks may take years to perform.

  • Past Performance: Review the fund's past performance and that of its manager to assess suitability.

  • Interest Rate Risk: Value funds may be impacted by changes in interest rates, affecting stock values.

  • Min Investment 1,000
  • Min SIP Amount 100
  • Exit Load

    a) If redeemed/switched out within 365 days from the date of allotment:
    ->Upto 10% of investment:Nil,
    ->For remaining investment: 1% of applicable NAV.
    b) If redeemed / switched out after 365 days from date of allotment: Nil. (w.e.f. May 08, 2020)
     

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Annualised Returns(as on 31st Oct, 2024)40.53%1yr23.39%3yr27.97%5yr
NAV 149.1290 as on 07/11/20241 Day Change: -1.20(-0.80%)

Scheme is suitable for a minimum investment horizon of more than 5 years

Tier 1 Benchmark : BSE 500 TRIAlternate Benchmark : Nifty 50 TRI

Tier 2 Benchmark : BSE 400 MidSmallCap TRI

Performance as on 30th September 2024

Scheme NamesCAGR Returns (%)Current value of Investment of 10,000
1 year3 year5 year10 year07/03/2008 Since inception1 year3 year5 year10 year07/03/2008 Since inception
Bandhan Sterling Value Fund - Regular Plan - Growth40.5323.3927.9717.2418.1014,07918,79634,36149,1201,57,751
40.8518.3922.3815.5812.9414,11116,60027,48642,58875,204
52.7428.0332.7719.8614.7415,29221,00241,32361,34797,647
32.8014.9218.9513.8312.0513,30015,18423,83936,57865,982
^ Tier 1 Benchmark   |   ^^ Alternate Benchmark   |   ^^^ Tier 2 Benchmark

This fund is managed by Mr. Daylynn Pinto (w.e.f 20/10/2016)

View fund performance of other funds managed by Mr. Daylynn Pinto

Past performance may or may not be sustained in future.
Regular and Direct Plans have different expense structure. Direct Plan shall have a lower expense ratio excluding distribution expenses, commission expenses etc.

Taxation:

For taxation, please refer the link :  https://bit.ly/46xQzi1

Bandhan Sterling Value Fund

(Scheme Risk-o-meter)

Investors understand that their principal will be at Very High Risk.

BSE 500 TRI

(Tier 1 Benchmark Risk-o-meter)

BSE 400 MidSmallCap TRI

(Tier 2 Benchmark Risk-o-meter)

This product is suitable for investors who are seeking* :

  • To create wealth over long term.
  • Investment predominantly in equity and equity related instruments following a value investment strategy.

 

Value Fund vs Growth Fund

Here are the key differences between value and growth funds:

•  Value investing targets undervalued companies whose stock prices are lower than their intrinsic value.

•  Growth investing focuses on companies expected to grow faster than their peers and outperform competitors.

•  Value investors buy mature companies at bargain prices.

•  Growth investors invest in younger, fast-growing companies.

•  Value investing carries high risk and is suited for investors with a high-risk tolerance.

•  Growth investing is volatile and risky, appealing to investors seeking high risk and high returns.

Who can Invest in Value Funds?

Value mutual funds are suited for long-term investors willing to hold underperforming stocks until their value is realized.

These funds are ideal for investors with a high-risk appetite, seeking to follow a value investment strategy and create potential long-term wealth through equity investments.

FAQs on Value Funds

Is a value fund a good investment?

Value funds are suitable for the long-term. As these funds depend on long-term market changes, they are ideal for investors looking to create wealth in the long-term.

How does value funds work?

Value mutual funds follow a value investment strategy. They seek to invest in stocks that have undervalued market prices in comparison to their intrinsic value.

How risky is a value fund?

Value Funds are high risk funds. The relatively higher risk may be associated with the potential to generate high returns in the long term

What are value funds in mutual fund?

Value funds are a type of mutual fund in which fund managers invest in undervalued stocks. Stocks that have a greater intrinsic value than their market value are considered undervalued. They are long-term investments that have a potential for steady growth over long term

What category are value funds?

Value funds are open-ended equity schemes. They follow a value investment strategy.

*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.