Russia Ukraine war and rising interest rates have made equity markets across the world volatile. Since the beginning of CY2022, savvy investors have consciously avoided stocks enjoying high valuations despite poor fundamentals.
No wonder, diversified equity funds offering value-focused strategies have managed to contain downside. In the last three months, value funds and dividend yield funds have lost 4.02 percent and 3.12 percent respectively. Over the same period flexi-cap funds have lost 6.19 percent.
As central banks gradually suck out liquidity, investors will look for assets offering decent yield. And that makes a strong case for investments in value focused funds in staggered manner.