'Growth' vs 'Value' funds: Difference and which is better?

How are 'growth' and 'value' funds different? Which one should one choose? - Yogesh Most mutual funds have a distinct philosophy when it comes to picking stocks. Some follow the 'growth' style, while some adhere to 'value'. 'Growth' investing invests in companies with the potential for faster-than-average growth. Given their perceived higher potential, these stocks are often available at a higher price (premium). Value funds, meanwhile, look for undervalued stocks that can appreciate. Typically, growth stocks boast higher-than-average valuations. You can check a stock's valuation by looking at price-to-earnings (P/E) and price-to-book value (P/B) ratios. Conversely, value funds look for companies with a

This article was originally published on March 05, 2024.