Guide to Investing in Value Funds – Yahoo Finance


"VALUE" with a magnifying glass in front of those words
“VALUE” with a magnifying glass in front of those words

Choosing the right investment strategy matters when trying to build wealth in your portfolio. Some investors favor growth, for instance, while others look for value in the markets. If the latter approach sounds like your style then investing in a value fund could make sense. Value funds invest in companies that have the potential to generate returns for investors long-term. Knowing how they work can help with choosing the right value funds for your portfolio. If you want expert guidance in selecting value funds that fit into your overall portfolio, consider matching with a financial advisor in your area.

Value Fund, Definition

A value fund is a type of mutual or exchange-traded fund (ETF) that uses a value investing strategy. Value investing, popularized by Warren Buffett, means looking for companies that the market as a whole is underestimating. The theory behind this approach is that you buy into an undervalued company and hold onto it, benefiting when the company’s stock price catches up to its actual worth.

In other words, value investing is all about finding the bargains in the market that have the potential to generate consistent returns later. A value mutual fund or ETF
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