We will find the best value-oriented mutual fund to invest in 2019. A new category for mutual fund investor that didn’t exist in 2018. A mutual fund that can invest irrespective of the market cap in companies where the fund manager finds value is known as a value-oriented mutual fund. The advantage of investing in a value-oriented fund over other funds is – it invests in companies where the fund manager finds stocks price provides a value.
As an investor, the decision of choosing value stocks is with the fund manager. If he gets the study right, there are more chances of fund doing very well compared to others. Also, check out: The Best Large Cap Funds To Invest in 2019 & The Best Midcap Fund to Invest in 2019.
The process we will use is- from the best rated direct value-oriented funds by VRO, we will choose the funds that can outperform.
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We nail down to a fund that has given stable returns in the volatile market of last year.
Kotak India EQ Contra Fund has managed to provide positive returns where all the other funds have given negative returns in this category.
If we have to select more than one fund from the category, it has to be Invesco India Contra Fund. Though the returns are slightly negative but not too much. On top of that, it has a very stable expense ratio in the direct fund as well.
In case you have not selected a better performing fund earlier or want to move to a new fund for any other reason (move to regular to direct funds). Don’t exit the investment in the old fund. Just stop the SIP and let the invested amount remain and grow over time in the old fund. Create a new SIP in the new funds.
As always this isn’t an endorsement of the above fund. The emphasis is on the process to select the best mutual funds using tools like ValueResearchOnline as and when you want to invest in 2019.