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6 Best Mutual Funds for Value Stocks

Illustration by Pablo Bernasconi

No one would mistake Wall Street for Fifth Avenue, but they do have one thing in common: As sure as hemlines rise or fall, or ties grow fat or narrow, investing styles come into and go out of fashion. This year, you’ll find value stocks in some of the smartest portfolios. As the moniker implies, value stocks are those that are cheap in relation to a company’s sales, profits or underlying assets. And for reasons that are less whimsical than the fashion dictates of Fifth Avenue, shopping in the bargain basement is paying off so far this year.

Year-to-date through June 30, the S&P Value index returned 6.2%, compared with 1.6% for the S&P Growth index. And midsize-company value funds, small-company value funds and large-company value funds occupy the top three slots so far this year among Morningstar’s nine style categories for domestic mutual funds.

Because value investors dabble in the unloved corners of the stock market, they need a steady hand and a contrarian mind-set — as you'll find at the helm of these 6 mutual funds poised to harness the power of value stocks.

All data as of June 30.

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