Investors got better returns from value based investments in expensive markets: Analysts
New Delhi| Due to the new high in the equity market, the valuation of shares has become much higher. Mutual funds are an alternative to better returns in this environment for retail investors. Value Discovery Scheme has given good profits to investors in such a market.
Analysts believe that the Value Discovery plan is good for investors who want to build wealth in the long run and invest in a disciplined manner. For example, ICICI Prudential Value Discovery Fund has given a return of 21.2 per cent compounded annually over 20 years. Despite occasional poor performance, the Fund has consistently delivered strong profits. In the last one year, three years and ten years period, the Fund has given benefits of 46.5 per cent, 26.4% and 18% respectively. It has given 3-8 percent more profit than Nifty 500 TRI in various time periods.
Value discovery gives more benefits than the benchmark in market growth. If the market falls, there is less loss in this fund. The reason for this is that the scheme is always inclined towards lorzcap shares. There is less investment in mid-smallcap.
The scheme can invest 70% or more of the portfolio in largecaps. It also reduces. This has been seen in the rise of mid and smallcap stocks in the last few years. This helps in balancing investments.
