Will value investing strategy work in a growing economy like India? Therefore, is it advisable to keep a value-oriented fund in a portfolio?
Yes. It is a good question and it is perfectly valid to own value funds. While we are a growing country, remember that competition can bring in new types of companies. Management of certain companies might be better than the others and therefore you will have choices. Also, sometimes near-term disappointments can bring down the share price very rapidly and that also could allow you to buy into those stocks. Let me give you an example.
I won't name it but certain times we have seen in tech companies that if they miss there quarterly numbers by a few paisa, their stock price comes down by 10-15 per cent. And similarly, if they tell you about muted growth prospects, the stock prices react to it very sharply. Now, if you are a person who is looking with a long-term perspective and understand that the business cannot change so much within a day, then it makes sense to buy in those stocks. So while we are a growing country, you will get value opportunities in many ways.