Once out of favour, Value funds now weathering market storm better

These funds had, on an average, generated returns of -7.4% during past three months, compared with negative returns of 8-10% by large-cap, mid-cap and small-cap funds

Indian equities have seen sharp sell-off this year due to the geopolitical tension and outflows by foreign portfolio investors (FPIs). High-beta stocks, which performed better over the past two years, have borne the brunt of the correction. But value stocks, which had once run out of favour, seem to have weathered the market storm better. This category of equity mutual funds has outperformed most other segments in that space recently.

Data from Value Research shows that value funds had, on an average, generated returns of -7.4 per cent during the past three months, compared with negative returns of 8-10 per