A quality fund follows a policy that focuses on investing in stocks based on fundamental characteristics that are undervalued in price.
Quality fund managers are searching for shares that are priced below their actual value for different reasons.
The idea behind a value investment strategy is that the share price will increase once the market understands the true value of these shares and the value
fund shareholder will benefit from this increase. Value stocks are often well-established companies providing dividend payments to investors.
Warren Buffett is a value investor, one of the most successful investors in the world. These mutual funds are invested in undervalued shares.
The underlying assumption is that stocks can be undervalued due to temporary factors and will yield higher returns than peers once the price is equal.
Value Fund :
These mutual funds invest in undervalued stocks.
The underlying assumption is that stocks can be undervalued due to temporary factors and will yield higher returns than peers once valuation is equal.