value fund   A mutual fund that invests in companies which it
determines to be underpriced by fundamental measures. Assuming
that a company's share price will not remain undervalued
indefinitely, the fund looks to make money by buying before the
expected upturn. Value funds tend to focus on safety rather than
growth, and often choose investments providing dividends as well
as capital appreciation. They invest in companies that have low
P/E ratios, and stocks that have fallen out of favor with
mainstream investors, either due to changing investor
preferences, a poor quarterly earnings report, or hard times in
a particular industry. Value stocks are often mature companies
that have stopped growing and that use their earnings to pay
dividends. Thus value funds produce current income (from the
dividends) as well as long-term growth (from capital
appreciation once the stocks become popular again). They tend to
have more conservative and less volatile returns than growth
funds.  Use value fund in a sentence  Featur