Bandhan Sterling Value Fund

The IDFC Sterling Value Fund is a diversified equity scheme launched on 7th March 2008 by IDFC Mutual Fund.

The scheme distributes the majority of its investments across the banking, pharmaceutical and biotechnology, IT, electrical equipment, auto components, ferrous metals, finance, and industrial products sectors. It is managed by Anoop Bhaskar and Daylynn Pinto.

The scheme’s investment objective is to generate capital appreciation from a diversified portfolio of equity and equity-related securities by following a value investment strategy. Value investment strategy involves purchasing undervalued securities to profit from the market’s eventual recognition of their true value.

To achieve its investment objective, the scheme invests in undervalued companies using a systematic process that assesses industry growth and company management for long-term growth potential.

The IDFC Sterling Value Fund allocates at least 65% of its assets to equity and equity-related securities. It can allocate the balance to debt and money market instruments, REITs, and InvITs.

Pros & Cons

How to invest in IDFC Sterling Value Fund?

5paisa makes it simple and convenient for users to invest in the IDFC Sterling Value Fund Direct-Growth. The procedure is straightforward, can be finished quickly, and does not include any paperwork at any point. Invest a few minutes in carrying out the steps listed below:

Step 1: Log in to your 5Paisa Account. If you do not have one, click the link to register and create a new 5Paisa account in 3 easy steps. Alternatively, you can download the 5Paisa app on your smartphone for Android or IOS and log in from your device.

Step 2: Search for the IDFC Mutual Fund scheme that you want to invest in

Step 3: Select the option that is apt for your requirement and risk appetite

Step 4: Select the investment type – SIP (Systematic Investment Plan) or Lumpsum

Step 5: Input the amount that you’d like to invest and proceed with payment by clicking on the ‘Invest Now’ button

That’s it! This sums up the investment process. Once your payment is successful, you can see the IDFC Mutual Fund reflected in your 5Paisa account in 3-4 working days. If you have selected the SIP option, the chosen amount will get deducted every month starting from the date you have made the payment.

What is the expense ratio of the IDFC Sterling Value Fund?

When referring to the IDFC Sterling Value Fund Direct-Growth or any other mutual fund, the word “Expense Ratio” refers to the fund’s annual operating expenses as a percentage of its total assets, which can impact a scheme’s returns for investors. A lower expense ratio usually means the fund is less costly and may generate higher returns for the investors.

Who should invest in IDFC Sterling Value Fund?

The IDFC Sterling Value Fund is suitable for investors seeking long-term capital appreciation through investment in predominantly equity and equity-related instruments by following a value investment strategy. The value investment strategy focuses on investing in undervalued companies with strong fundamentals to realise capital appreciation over the long term.

The scheme has a consistent performance history, making it a well-regarded investment option in the value fund category. With an average yearly growth rate of 16.4% (calculated by its Compound Annual Growth Rate) since its inception, the fund has regularly outperformed the S&P BSE 500 TRI and the S&P BSE 400 MidSmallCap TRI benchmark indices.

The IDFC Sterling Value Fund is suitable for investors with a long-term investment perspective of more than 5 years and a very high appetite for risk. However, it may not suit those investors who prefer low-risk investments or have short-term investment goals.

What are the benefits of investing in the IDFC Sterling Value Fund?

● The IDFC Sterling Value Fund has achieved a CAGR of around 16.4% since its inception, outpacing its benchmark and the average returns of its category. This makes it an attractive option for investors looking to grow their wealth over time.
● Invest in the scheme for strong performance, evidenced by its higher alpha than the benchmark indices and category average.
● The current macro environment is favourable for value investing, making the IDFC Sterling Value Fund a compelling option. The Fund invests in undervalued companies with strong growth potential, offering the benefit of capitalising on this favourable market situation.
● The scheme offers a good investment opportunity since it focuses on relative value across market caps, competitive positioning with market leaders, and strong earnings momentum for selecting stocks.
● It adopts a multi-cap approach, investing in companies across different market capitalization segments. This diversified investment strategy helps to reduce portfolio risk by spreading investments across market caps, industries, and sectors.
● The underlying portfolio companies of the IDFC Sterling Value Fund are expected to grow faster than the benchmark indices for the next two years due to attractive valuations.