Value Fund or Contra Mutual Fund

About

A Value Fund is an equity-oriented mutual fund that invests in undervalued stocks — companies whose current market prices are below their perceived intrinsic value based on fundamentals such as earnings, book value, or growth prospects. The idea is that over time the market will recognize their true worth and prices will rise.

Fund Type

By Diversification, Equity

Key Features

Both invest primarily in stocks aiming for capital appreciation over time.

Buys undervalued companies with strong fundamentals.

Designed for long-term capital appreciation rather than short-term trading.

Delivers diversified exposure across sectors and companies selected under the chosen strategy.

Taxation

STCG

Holding Period ≤ 12 months, 20% Tax on Gain

LTCG

Holding Period > 12 months, 12.5% Tax on Gain

Dividends Tax

As Per Income tax slab rates, TDS of 10% may be deducted by the fund house if dividend income exceeds ₹5,000 in a financial year.

Exemption Limit

1.25 Lakh on LTCG in financial year

Indexation

No Indexation

Allocation

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Equity & Equity Related

65%

Other

35%

Locked in Period

Nill

Exit Load

An exit load of 0.25% – 1% is generally applicable if units are redeemed within 12 months. However, the exact structure may vary based on the specific scheme

Risk Associated

Find the funds

Mutual Fund Investments are subject to market risks, read all scheme related documents carefully before investing. Past performance is not indicative of future performance.