Value-based funds mainly build investment portfolios with value-added stocks. In practice, they pay more attention to risk control and pursue stable asset appreciation. For example, Dacheng Fund has maintained a stock position worth about 80% since its establishment and maintained a stable investment style. In 2006, it achieved 65,438+009.74% management performance with an average stock position of 77%, and achieved a good risk-return ratio. Such a fund can be regarded as a value fund.
The investment philosophy of value-based funds is that the stock price may deviate from the intrinsic value of the stock in heresy time, but in the long run, the stock price will definitely return to the 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, expecting the stock price to return to a 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 rate. Generally, the price-earnings ratio and price-to-book ratio of such companies are low, with small fluctuations and strong resilience. When the market falls, such funds can often play a role in stabilizing the market, but in a bull market, their income is lower than that of growth funds.