Value fund

Value fund, which mainly constructs the investment portfolio with value growth stocks, pays more attention to risk control and pursues the stable appreciation of assets in actual operation. For example, Dacheng Fund has maintained a stock position with a value of about 8% since its establishment, and maintained a stable investment style. In 26, it achieved 19.74% management performance with an average of 77% stock position, achieving a better risk-return ratio. Such a fund can be regarded as a value-based fund.

The investment philosophy of a value-based fund is that the stock price may deviate from its intrinsic value in a heretical time, but in the long run, the stock price will definitely return to its intrinsic value and tend to be consistent. Therefore, the investment style of value funds is to buy stocks whose current price is lower than their intrinsic value, and it is expected that the stock price will return to its reasonable level. Compared with growth funds, the investment risk is lower. This kind of fund mainly chooses companies with mature and stable business model, small cash flow fluctuation and high dividend payment rate. Generally, the stock prices of such companies have low P/E ratio and P/B ratio, and have little fluctuation and strong resilience. When the market falls, such funds can often play a role in stabilizing the market, but in a bull market, their earnings are lower than those in growth funds.