A more thorough explanation:

A value fund is a type of mutual fund that invests in stocks that its manager believes are priced below their true market value. The fund manager looks for companies that are undervalued by the market but have strong fundamentals, such as a solid balance sheet, good earnings potential, and a competitive advantage in their industry.

For example, let's say a value fund manager believes that a particular company's stock is undervalued by the market. The manager might buy shares of that company's stock for the fund's portfolio, expecting that the stock price will eventually rise as the market recognizes the company's true value. The fund might also invest in other undervalued stocks in different industries to diversify its portfolio.

Another example of a value fund is the Vanguard Value Index Fund, which invests in large-cap value stocks in the U.S. The fund's objective is to track the performance of the CRSP US Large Cap Value Index, which includes stocks that are considered undervalued by the market.

These examples illustrate how a value fund invests in stocks that are priced below their true market value, with the expectation that the market will eventually recognize their worth and the stock price will rise.