New Delhi, March 18 -- For any investor, getting the most value from their investments is always a top priority. This is where understanding 'value stocks' becomes important.

Stocks considered undervalued in the market are called value stocks. The stock market's reaction may not always accurately reflect a company's fundamentals, so these stocks trade at a price lower than their true value. Investors put their money into these stocks with the expectation that the market will eventually realise its true value, causing prices to rise and earning them profits.

Factors such as short-term market volatility, sectoral decline, the market's overreaction to certain news, management changes or restructuring of the company, and economic cycles are...