Value MFs attract Rs 1,556 cr inflow in Jan; outlook remains optimistic

Santosh Joseph, Co-founder and CEO of Germinate Investor Services, said the future of value funds will largely depend on sectoral trends and macroeconomic conditions.

"The key sectors that drove the value fund rally in 2023 and 2024, including metals, real estate, construction, capital goods, PSUs, and manufacturing, are expected to maintain their strength. This will be bolstered by continued government infrastructure spending and industrial expansion," Joseph said.

As long as these sectors continue to show resilience and growth potential, value investing is likely to remain an attractive strategy in 2025, he added.

Value stocks, typically undervalued at the time of purchase but with strong fundamentals and growth potential, are often contrasted with growth stocks, which focus on companies with significant future growth prospects.