Value Funds

Video Transcript

"This is financial adviser Patrick Munro talking about what is a value fund. Mutual funds have a wide variety of mission statements on what they want to achieve. And in this case with when you are talking about value this is where a fund manager would seek out the wider stock market looking for companies that are basically beaten down in value. But have the potential to come back, given the right circumstances. This is how money is made in the stock market, buy low and sell high. So therefore the manager has to look for the value, he does not want to buy a stock that is overpriced because then there's less potential for a higher valuation, rather he wants to look for funds or rather stocks that he can put into his fund that will have a better potential for upside for the investor. This is Patrick Munro discussing what are value funds."