When you’re out shopping for groceries, you’re likely to look for special deals and mega-discounts that offer the best bargain for your money.
That is exactly what it’s like to invest in stocks based on the Value Factor. This factor seeks to capture companies that are priced attractively in comparison to their fundamental attributes vs more expensive peers, thereby offering superior margin of safety.
Value Factor can be defined using descriptors such as Price to Book, Price to Earnings and Dividend Yield.
If you are someone who looks for bargains, whether you are buying socks or stocks, it is time to add some Value Factor exposure to your core investing portfolio.
Index Funds and ETFs tracking indices such as the S&P BSE Enhanced Value Index offer a cost-efficient exposure to the Value Factor.
We hope that you must have now learnt as to what exactly is the Value concept, as it is our constant endeavour at Motilal Oswal to educate & make an ‘investor’ a ‘sound investor’! Happy Investing!