Value Mutual Fund is a sub-category of equity mutual funds that offers investors the opportunity to benefit from the growth potential of undervalued stocks. Value Mutual Funds look to discover stocks that are trading below their intrinsic/fair value but have strong fundamentals and hold them until their full value/potential is realised. Investors can consider the Systematic Investment Plan (SIP) mode while investing in Value Mutual Funds to mitigate the impact of market volatility and benefit from the power compounding of wealth.
The Value Mutual Fund category comprises 11 schemes that have a track record of at least 10 years. In the last 10 years, all schemes in the category generated double-digit growth; of these, nine Value Mutual Funds generated SIP returns of 15% or more. The top-performing SIP generated XIRR of 19.1% during this period.
Notably, Value Funds have staged a comeback after a deep lull between 2018 and early 2020. The category has clocked superior performance in the last three years and has outpaced the category average returns of Large Cap Fund, Large & Midcap Fund, and Flexi Cap Fund.
[Read: 3 Best Value Funds to Invest in 2023 – Top Performing Value Funds in India]
Value Mutual Fund category average SIP returns over different time frames
Past performance is not an indicator of future returns.
Data as of September 18, 2023
Returns are XIRR in percentage
Direct plan – Growth option considered
(Source: ACE MF, data collated by PersonalFN)
What are Value Mutual Funds?
As per SEBI norms, Value Funds are equity-oriented mutual funds that follow the value-investment strategy, investing a minimum of 65% of their total assets in equity and equity-related instruments. These funds have the flexibility to invest across market capitalisation and sectors.
Since Value Mutual Funds predominantly invest in undervalued stocks, they can potentially offer a better margin of safety compared to growth-oriented funds. Hence, Value Funds can act as an effective portfolio diversifier.
Value Funds tend to underperform during momentum-based market rallies that generally favour growth stocks. But when the market realises the true potential of value stocks, the prices of these stocks soar, and investors are rewarded with attractive gains.
What is an SIP?
The SIP mode allows mutual fund investors to invest a certain fixed sum regularly over the long term in the scheme/s of their choice. This helps develop a financial discipline – the key to successful investing. It also enables averaging of investment costs as more units are added when the equity markets are trading low and fewer units when the markets are scaling up. This feature enhances the power of compounding, allowing the investors’ wealth to grow leaps and bounds over the long term. The tool used to calculate SIP returns is known as XIRR (Extended Internal Rate of Return).
[Read: 5 Key Benefits of Investing in Mutual Funds via SIP]
[Read: What is XIRR in Mutual Funds? And How to Calculate it?]
In this article, we will look at the top-performing Value Mutual Funds based on 10-year SIP returns.
Top-performing Value Mutual Fund on 10-Year SIP Returns #1: Bandhan Sterling Value Fund
Launched in March 2008, Bandhan Sterling Value Fund currently has an AUM of Rs 6,650 crore. The fund is managed by Mr Daylynn Pinto since October 2016. In the last 10 years, Bandhan Sterling Value Fund grew at an XIRR of 19.1%. A monthly SIP of Rs 1,000 over a 10-year period (i.e. total investment of Rs 1,20,000) would now be valued at Rs 3,27,963. The fund’s top stock holdings include Axis Bank, ICICI Bank, Jindal Steel & Power, CG Power and Industrial Solutions, and ITC.
| Scheme Name | Total Amount Invested (Rs) | Present Value (Rs) | 10-Year XIRR (%) |
| Bandhan Sterling Value Fund | 1,20,000 | 3,27,963 | 19.10 |
Past performance is not an indicator of future returns. The securities quoted are for illustration only and are not recommendatory.
Data as of September 18, 2023
Returns are XIRR in percentage
Monthly SIP of Rs 1,000 over a 10-year period in Direct plan – Growth option considered
(Source: ACE MF, data collated by PersonalFN)
Top-performing Value Mutual Fund on 10-Year SIP Returns #2: JM Value Fund
Launched in June 1997, JM Value Fund currently has a small-sized AUM of Rs 223 crore. The fund is co-managed by Mr Asit Bhandarkar since December 2006 and Mr Satish Ramanathan since August 2021. In the last 10 years, JM Value Fund grew at an XIRR of 19%. A monthly SIP of Rs 1,000 over a 10-year period (i.e. total investment of Rs 1,20,000) would now be valued at Rs 3,26,684. The fund’s top stock holdings include REC, HDFC Bank, Kalpataru Projects International, L&T, and Jyothy Labs.
| Scheme Name | Total Amount Invested (Rs) | Present Value (Rs) | 10-Year XIRR (%) |
| JM Value Fund | 1,20,000 | 3,26,684 | 19.02 |
Past performance is not an indicator of future returns. The securities quoted are for illustration only and are not recommendatory.
Data as of September 18, 2023
Returns are XIRR in percentage
Monthly SIP of Rs 1,000 over a 10-year period in Direct plan – Growth option considered
(Source: ACE MF, data collated by PersonalFN)
Top-performing Value Mutual Fund on 10-Year SIP Returns #3: HSBC Value Fund
Launched in January 2010, HSBC Value Fund (the erstwhile L&T Value Fund) currently has an AUM of Rs 9,237 crore. The fund is co-managed by Mr Venugopal Manghat since November 2012 and Mr Vihang Naik since December 2019. In the last 10 years, HSBC Value Fund grew at an XIRR of 18.5%. A monthly SIP of Rs 1,000 over a 10-year period (i.e. total investment of Rs 1,20,000) would now be valued at Rs 3,17,872. The fund’s top stock holdings include ICICI Bank, NTPC, Jindal Stainless, SBI, and HDFC Bank.
| Scheme Name | Total Amount Invested (Rs) | Present Value (Rs) | 10-Year XIRR (%) |
| HSBC Value Fund | 1,20,000 | 3,17,872 | 18.52 |
Past performance is not an indicator of future returns. The securities quoted are for illustration only and are not recommendatory.
Data as of September 18, 2023
Returns are XIRR in percentage
Monthly SIP of Rs 1,000 over a 10-year period in Direct plan – Growth option considered
(Source: ACE MF, data collated by PersonalFN)
Top-performing Value Mutual Fund on 10-Year SIP Returns #4: ICICI Pru Value Discovery Fund
Launched in August 2004, ICICI Pru Value Discovery Fund currently has an AUM of Rs 32,754 crore, making it the largest scheme in the Value Mutual Fund category. The fund is managed by veteran fund manager Mr Sankaran Naren since September 2005. In the last 10 years, ICICI Pru Value Discovery Fund grew at an XIRR of about 18.3%. A monthly SIP of Rs 1,000 over a 10-year period (i.e. total investment of Rs 1,20,000) would now be valued at Rs 3,13,983. The fund’s top stock holdings include Bharti Airtel, HDFC Bank, ONGC, ICICI Bank, and Sun Pharma.
| Scheme Name | Total Amount Invested (Rs) | Present Value (Rs) | 10-Year XIRR (%) |
| ICICI Pru Value Discovery Fund | 1,20,000 | 3,13,983 | 18.29 |
Past performance is not an indicator of future returns. The securities quoted are for illustration only and are not recommendatory.
Data as of September 18, 2023
Returns are XIRR in percentage
Monthly SIP of Rs 1,000 over a 10-year period in Direct plan – Growth option considered
(Source: ACE MF, data collated by PersonalFN)
Click here to read our detailed analysis of ICICI Pru Value Discovery Fund.
Top-performing Value Mutual Fund on 10-Year SIP Returns #5: Templeton India Value Fund
Launched in September 2003, Templeton India Value Fund currently has an AUM of Rs 1,267 crore. The fund is co-managed by Mr Anand Radhakrishnan January 2019 and Ms Rajasa Kakulavarapu since September 2021. In the last 10 years, Templeton India Value Fund grew at an XIRR of 17.5%. A monthly SIP of Rs 1,000 over a 10-year period (i.e. total investment of Rs 1,20,000) would now be valued at Rs 3,00,314. The fund’s top stock holdings include HDFC Bank, ICICI Bank, SBI, HCL Technologies, and Tata Motors – DVR.
| Scheme Name | Total Amount Invested (Rs) | Present Value (Rs) | 10-Year XIRR (%) |
| Templeton India Value Fund | 1,20,000 | 3,00,314 | 17.46 |
Past performance is not an indicator of future returns. The securities quoted are for illustration only and are not recommendatory.
Data as of September 18, 2023
Returns are XIRR in percentage
Monthly SIP of Rs 1,000 over a 10-year period in Direct plan – Growth option considered
(Source: ACE MF, data collated by PersonalFN)
Top-performing Value Mutual Fund on 10-Year SIP Returns #6: Nippon India Value Fund
Launched in June 2005, Nippon India Value Fund currently has an AUM of Rs 5,575 crore. The fund is co-managed by Ms Meenakshi Dawar since May 2018 and Mr Dhrumil Shah since December 2022. In the last 10 years, Nippon India Value Fund grew at an XIRR of 17.3%. A monthly SIP of Rs 1,000 over a 10-year period (i.e. total investment of Rs 1,20,000) would now be valued at Rs 2,97,349. The fund’s top stock holdings include HDFC Bank, ICICI Bank, L&T, Infosys, and Reliance Industries.
| Scheme Name | Total Amount Invested (Rs) | Present Value (Rs) | 10-Year XIRR (%) |
| Nippon India Value Fund | 1,20,000 | 2,97,349 | 17.28 |
Past performance is not an indicator of future returns. The securities quoted are for illustration only and are not recommendatory.
Data as of September 18, 2023
Returns are XIRR in percentage
Monthly SIP of Rs 1,000 over a 10-year period in Direct plan – Growth option considered
(Source: ACE MF, data collated by PersonalFN)
Top-performing Value Mutual Fund on 10-Year SIP Returns #7: Tata Equity P/E Fund
Launched in June 2004, Tata Equity P/E Fund currently has an AUM of Rs 5,953 crore. The fund is co-managed by Mr Sonam Udasi since April 2016 and Mr Amey Sathe since June 2018. In the last 10 years, Tata Equity P/E Fund grew at an XIRR of 16.9%. A monthly SIP of Rs 1,000 over a 10-year period (i.e. total investment of Rs 1,20,000) would now be valued at Rs 2,90,586. The fund’s top stock holdings include HDFC Bank, ITC, ICICI Bank, Reliance Industries, and Hero Motocorp.
| Scheme Name | Total Amount Invested (Rs) | Present Value (Rs) | 10-Year XIRR (%) |
| Tata Equity P/E Fund | 1,20,000 | 2,90,586 | 16.85 |
Past performance is not an indicator of future returns. The securities quoted are for illustration only and are not recommendatory.
Data as of September 18, 2023
Returns are XIRR in percentage
Monthly SIP of Rs 1,000 over a 10-year period in Direct plan – Growth option considered
(Source: ACE MF, data collated by PersonalFN)
Who should invest in Value Mutual Funds?
Since Value Funds invest in undervalued/out of favour stocks, the fund managers’ bets may take time to payoff. Therefore, Value Funds may underperform in the short to medium term. However, over the long term, Value Funds can generate returns in line with growth-oriented funds or even outperform them.
Value funds can form a part of the ‘Core’ portfolio of investors who can handle an extended period of underperformance and if the investment horizon is at least 7 years.
Related links:
Should You Kick-start Your SIPs Amid Market Highs? Find Out Now
Market at All-time High: How to Select the Best Mutual Funds for SIP Investment Now?
7 Top Performing Mutual Funds Based on 10-Year SIP Returns
7 Top-Performing Mid Cap Mutual Funds with High Returns on 10-Year SIP
7 Top-performing Small Cap Mutual Funds with High Returns on 10-Year SIP
7 Top-performing Large Cap Mutual Funds with High Returns on 5-Year SIP
7 Top-performing Flexi Cap Mutual Funds with High Returns on 10-Year SIP
7 Top-performing ELSS (Tax Saving Mutual Funds) with High Returns on 10-Year SIP
Note: This write-up is for information purpose and does not constitute any kind of investment advice or a recommendation to Buy / Hold / Sell a fund. Returns mentioned herein are in no way a guarantee or promise of future returns. As an investor, you need to pick the right fund to meet your financial goals. If you are not sure about your risk appetite, do consult your investment consultant/advisor. Mutual Fund Investments are subject to market risks, read all scheme-related documents carefully.
This article first appeared on PersonalFN here
