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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.
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