Unlocking the power of passive value investing through Nifty 50 Value 20 Index

economictimes.indiatimes.com:

value investing is to purchase these stocks at a low price and hold them until their market value reflects their true worth, thereby earning a profit. This approach is based on the belief that the market sometimes overreacts to good and bad news, causing stock prices to fluctuate more than they should. So, value investors look for opportunities where they can capitalize on these market inefficiencies, often requiring patience and a long-term perspective.

Investors can participate in a value strategy through actively or passively managed funds. Active funds have professional managers who make decisions on portfolio allocation, aiming to outperform the market through research and analysis. On the other hand, passive investing is straightforward wherein the fund just follows the index it is based on, holding the same stocks in the same proportions. This means an investor is always aware of what one is investing into. Plus, the index generally tends to be diversified in nature and is low cost in nature compared to its active counterpart. Additionally, investors through index investing can have a hands-off approach to investing.

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Now, for an investor looking to integrate value style in one’s portfolio, one of the easiest ways of achieving this objective is via investing in an