To generate consistent long-term capital appreciation by investing predominantly in equity and equity related securities by following value investing strategy. However, there can be no assurance that the investment objective of the Scheme will be achieved.
The Scheme aims to provide long term capital growth by investing in a diversified portfolio of companies that are selected using attributes of value investing. The approach of value investing is to identify stocks which trade at valuations lower than the overall market, their own historical average valuations or relative to their fundamental valuations. Stocks that trade at lower valuations have the potential to provide appreciation in the future. However, value investing needs to keep in mind the risk of value traps - that is stocks that appear optically cheap but are not really so since the cheap valuation is backed by poor fundamentals. Hence the fund`s strategy would be to select value stocks while making sure that they have sound business models.