You're here:  Home --> Dictionary --> V --> Value Fund

Growth Fund
Balanced Fund
Value Stock
Index Fund

Value Fund
Term category: Mutual Funds
In 10 words or less: A type of mutual fund that invests in stocks believed to be undervalued in price.

Definition: Value funds are mutual funds that invest in stocks that are trading at prices believed to be lower than what the stock is actually worth.

StockJargon Advice: Value funds differ from growth funds because they don't invest in companies growing quickly.  Rather, they seek out stocks that may just be out of favor.

At times of high economic growth, value stocks lose their appeal to investors.  This was evident in the late 1990's when investors were putting their money into Internet stocks.

Related Articles

Fund Classifications
Learn about the different types of fund classifications and objectives…

Load vs. No-load
Unsure of what mutual fund loads are? We'll explain them and tell you why no-load funds are better for you…

Prospectus
Learn how to read the report that every mutual fund sends its investors...

Related Books

Morningstar Guide to Mutual Funds by Christine Benz
Common Sense on Mutual Funds by John Bogle
Mutual Funds for Dummies by Eric Tyson
Exchange Traded Funds By Jim Wiandt

# -A - B - C - D - E - F - G - H - I - J - K - L - M - N - O - P - Q - R - S - T - U - V - W - X - Y - Z