Business and Personal Finance Dictionary

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• VALUE FUND
  
  When a mutual fund manager buys primarily undervalued stocks for the fund's portfolio with the expectation that these stocks will increase in value, that fund is described as a value fund. A value fund may be limited to stocks of a certain size, such as those included in a small-cap value fund, or it may include undervalued stocks with different levels of capitalization. There is a running debate among financial analysts about whether, over the long term, an investor makes out better buying shares in a value fund or in a fund that may buy high-priced stocks with strong growth potential.
  
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