Define: Value Fund

Business, Legal & Accounting Glossary

Definition: Value Fund



Advertisement



Full Definition of Value Fund


A mutual fund that employs a value approach to investing is referred to as a value fund. A manager of a value fund will select stocks he/she believes are fundamentally undervalued for inclusion in the portfolio. Value fund managers typically screen for companies trading at a P/E discount to the overall market or companies in a turnaround mode. A value fund is more focused on safety than a growth fund so most value fund managers look for mature companies with ample cash flows that have an established track record of paying dividends. Value fund managers generally outperform growth fund managers during periods when the economy is weak. Because a value fund derives a portion of its returns from dividends and is not dependent exclusively on share price gains, a value fund tends to be less volatile than a growth fund.


Advertisement




Cite Term


To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
https://payrollheaven.com/define/value-fund/
Modern Language Association (MLA):
Value Fund. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. April 05, 2020 https://payrollheaven.com/define/value-fund/.
Chicago Manual of Style (CMS):
Value Fund. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/value-fund/ (accessed: April 05, 2020).
American Psychological Association (APA):
Value Fund. PayrollHeaven.com. Retrieved April 05, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/value-fund/

Definition Sources


Definitions for Value Fund are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 5th February, 2020