Value theme has been dominating the Indian stock market for the last one year or so. The mutual funds that have been following the value investing strategy have offered handsome returns in the last year. However, fund houses that had been following the growth strategy have suffered. If you swear by value investing principles, you may invest in value funds to take care of your long term needs.
If you are new to value investing, you should acquaint yourself with this style of investing and its merits and demerits. A value investor tries to choose stocks that are available at cheaper valuations. These investors employ various ratios and methodology to identify such stocks. Essentially, they look for stocks that are available at a discount to their real or intrinsic value. Simply put, it means the market hasn't discovered the true potential of these stocks and they are available at a discount.
