Bandhan Sterling Value Fund - Direct Plan
An open ended equity scheme following a value investment strategy
Click here to watch the Fund Manager share exclusive insights on the fund.
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:
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Investment Horizon: Value investing suits long-term investors, as stocks may take years to perform.
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Past Performance: Review the fund's past performance and that of its manager to assess suitability.
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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)
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
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Performance as on 31st October 2024
| Scheme Names | CAGR Returns (%) | Current value of Investment of 10,000 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 1 year | 3 year | 5 year | 10 year | 07/03/2008 Since inception | 1 year | 3 year | 5 year | 10 year | 07/03/2008 Since inception | |
| Bandhan Sterling Value Fund - Regular Plan - Growth | 37.33 | 19.92 | 25.83 | 16.37 | 17.58 | 13,745 | 17,270 | 31,580 | 45,602 | 1,48,489 |
| 35.79 | 15.64 | 19.83 | 14.34 | 12.42 | 13,590 | 15,483 | 24,731 | 38,233 | 70,356 | |
| 46.81 | 23.42 | 29.26 | 18.57 | N.A. | 14,697 | 18,831 | 36,133 | 55,006 | N.A. | |
| 28.30 | 12.35 | 16.61 | 12.62 | 11.57 | 12,839 | 14,195 | 21,582 | 32,844 | 61,945 | |
| ^ 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)
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.