opp icon Ultimate Value

Value investing for high returns

A long-term investment strategy that invests in undervalued companies with solid fundamentals.

introducing: Ultimate Value

Value investing, inspired by Warren Buffett, is a timeless strategy rooted in buying undervalued stocks with solid fundamentals. It prioritizes long-term growth over short-term fluctuations, focusing on intrinsic value and patient investing. Buffett's wisdom underscores the importance of due diligence, rationality, and a contrarian approach to building lasting wealth.

investment strategy

The Ultimate Value portfolio follows an investment strategy based on the fact that the market is not always efficiently matching a stock’s price with its intrinsic value. Investment managers seek to benefit from this inefficiency in the market to generate reasonable returns.

Bottom-up & sector agnostic approach: Invest in stocks with strong fundamentals trading at prices lower than their intrinsic value.

Value investing strategy: Look for stocks whose prices are low relative to their historic performance.

Capture special situations: Identify large-cap stocks that are beaten down due to non-fundamental reasons.

What you are investing in

Invest in government-backed growth companies amid India's strong economy.

Allocate some funds to government-related stocks, balance with others.

Use funds focusing on sectors like Oil, Gas, Power for potential growth.

Vary investments in size, safeguard against different risks.

historical performance in global markets

In the American stock market, value stocks outperformed growth stocks (stocks expected to grow their earnings with business expansion) by an average of 2.5% per year over the period 1975-2020.

Since March 23, 2020, Nifty Value Index outperformed Nifty Growth Index by 33% indicating that value stocks performed better than growth stocks in recent years.

Ultimate Value: pros & cons

benefits

Potential for higher returns
Higher dividends.
Ideal for a long-term investment strategy.

drawbacks

More volatile in the short term.
Requires patience to see noticeable returns.
Requires heavy research and analysis.

annualized past returns

Annualized past returns The Ultimate Value portfolio follows a value investment style and intends to offer a diversified portfolio of stocks that have high potential but are quoting at a discount to their fair/intrinsic value.

risk rating

Very High

who should invest in this

This portfolio is best suited for investors who have a long investment horizon, are comfortable with some risk, and are looking to generate long-term returns. Retirees who are looking for a steady income stream and investors who are willing to invest for at least five years may also be well-suited for value investing.

Age

18-40 years

Risk Profile

Aggresssive

Investment Horizon

5+ Years

Returns Expectations

Outperform benchmark returns

Ideal Financial goals

Long-term growth, retirement, home ownership

current holdings

more Opportunities

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Factor Focused

3+ Years investment horizon

12.45%

5 year CAGR

14%

NIFTY 500 TRI - 3Y CAGR

Ideal for quant geeks, this portfolio employs attributes like low volatility and high momentum, capturing distinct risk-return profiles in stocks.

Flexicap Kings

5+ Years investment horizon

19.6%