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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?

Value funds are a type of mutual fund in which the fund manager or investor looks to invest in the stocks of undervalued companies. For many companies, their stock price is not indicative of their actual growth. Intrinsic value of a company can be calculated considering its financial status, business model, management team, marker factors and competition. When the intrinsic value of a company is greater than its market value, it is considered to have ‘value.’

The rationality behind value funds is that the market value of some companies reflects at levels lower than its actual worth due to market conditions. Once the market corrects, these stock prices will rise and the investor have the opportunity to potentially gain from it. These companies can be identified by skilled value fund managers to create potential returns.

Value funds can help diversify your portfolio and are less vulnerable to market fluctuations as they are undervalued. Value mutual funds can potentially give exponential returns.

While investing in a value mutual fund it is necessary to consider some factors:

  • Period of Investment: Value investing is suitable for long-term investors. The stock may take a couple of years to perform again; it is necessary to consider long-term goals.

  • Past Performance: It is necessary to look at the past performance of a fund. Looking at the past performance of the fund manager and the fund will help you understand whether the scheme is suitable for you.

  • Interest Rate Risk: Value funds may be subject to interest rate risk. Changes in interest rates can affect the value of stocks.

  • 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 May, 2024)37.31%1yr23.37%3yr21.37%5yr
NAV 145.6720 as on 20/06/20241 Day Change: 0.25(0.17%)

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

Tier 1 Benchmark : S&P BSE 500 TRIAlternate Benchmark : Nifty 50 TRI

Tier 2 Benchmark : S&P BSE 400 MidSmallCap TRI

Performance as on 31st May 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 - Growth37.3123.3721.3717.8017.4813,74318,78826,36951,5491,36,986
34.5918.0618.0215.2012.2413,47016,46222,91941,21365,259
54.1826.0725.5219.50N.A.15,43620,05231,19459,509N.A.
22.9514.4414.9313.4211.3512,30214,99120,07235,26957,321
^ 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/3spfzbo

Bandhan Sterling Value Fund

(Scheme Risk-o-meter)

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

S&P BSE 500 TRI

(Tier 1 Benchmark Risk-o-meter)

S&P 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

Value funds and growth funds are similar concepts; however, they have some key differences.

Value funds Meaning: Value investing focuses on undervalued companies, whose stock value is lower than their intrinsic value.

Growth Investing Meaning: Growth Investing is a strategy in which the investors expect that certain growing companies will expand more quickly than others. These companies out-perform their competitors.

Value Investors: Value investors invest in fully-grown companies at bargain prices.

Growth Investors: Growth investors invest in young companies or small businesses who are expected to grow.

Risk in Value Investing: Value investing is high risk. This is ideal for investors who have a high-risk tolerance.

Risk in Growth Investing: Growth investing can be volatile and risky. This is ideal for investors who are looking for high risk and returns.

Who can Invest in Value Funds?

Value mutual funds are suitable for seasoned investors who have awareness and knowledge about the market. Finding the right stocks and purchasing them at the right time requires a lot of effort and knowledge. Moreover, value funds invest in under-performing stocks which are expected to perform better due to their intrinsic value. They are suitable for investors looking for long-term investments.

Value mutual funds are also suitable for investors following a value investment strategy and looking to invest predominantly in equity and equity related instruments. Value mutual funds are ideal for investors who have a high-risk appetite and are looking to create wealth in the long-term.

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.