Before zeroing in on a mutual fund, investors tend to weigh a lot of pros and cons. These factors include the reputation of the fund house, fund manager’s reputation, fund category and importantly – the past performance of the scheme.
Here we look at a number of value funds that have delivered a high CAGR (compound annual growth rate) performance, i.e., over 15 percent in the past 10 years.
But before we proceed further, let us explain what exactly are value mutual funds.
What are value funds?
Value mutual funds are equity schemes that invest a minimum of 65 percent of assets in stocks, and follow a value investment strategy wherein they invest in undervalued stocks. There are 23 schemes in this category with total assets under management (AUMs) of ₹1,04,685 crore.
One of the key reasons for investors to select these stocks is that they are trading lower but they are expected to provide higher returns in the long run.
Here we give a lowdown on the past returns of high-performing value funds in the past 10 years.
| Value Mutual Funds | 10-year-returns (%) |
| ICICI Prudential Value Discovery Fund | 19.29 |
| HSBC Value Fund | 19.22 |
| Bandhan Sterling Value Fund | 18.27 |
| Tata Equity PE fund | 18.26 |
| JM Value Fund | 17.52 |
| ABSL Pure Value Fund | 17.26 |
(Source: AMFI data as on July 11, 2023)
As one can see from the table above, the CAGR returns of high-performing value funds range between 17-19 percent in the past 10 years.
As a category, value funds have given a return of 16.83 percent in the past 10 years, shows Morning Star data as on July 11, 2023. The highest return of 19.29 percent was delivered by ICICI Prudential Value Discovery Fund.
Here we give a snapshot of these value funds:
ICICI Prudential Value Discovery Fund: It was launched on August 16, 2004 and is managed by Sankaran Naren, Dharmesh Kakkad, Sharmila D'mello. The fund has given a CAGR return of 19.84 percent since inception.
The key constituent stocks include Treps, Sun Pharma, ONGC, ICICI Bank and NTPC.
HSBC Value Fund: It was launched on Jan 8, 2010, and is managed by Venugopal Manghat and Vihang Naik. The CAGR returns of this scheme since inception are 15.28 percent. The key constituent stocks include ICICI Bank, NTPC, SBI, HDFC Bank and ITC.
Bandhan Sterling Value Fund (Regular growth): This was launched on Mar 7, 2008 and is managed by Daylynn Pinto. The fund has given a CAGR return of 16.60 percent since inception and the key constituent stocks include Tri-party Repo, ICICI Bank, Axis Bank, ITC and CG Power & Industrial Solutions.
Tata Equity PE Fund: The scheme was launched on June 29, 2004 and is managed by Sonam Udasi and Amey Sathe. The scheme has delivered a CAGR return of 18.13 percent since inception. The key constituent stocks include HDFC Bank, ICICI Bank, ITC, HDFC and RIL.
JM Value Fund: The fund was launched on June 2, 1997. The fund has delivered a CAGR return of 15.94 percent. Its constituent stocks are REC, HDFC Bank, L&T, Infosys and Kalpataru Projects International.
Aditya Birla Sun Life Pure Value Fund: It was launched on March 27, 2008 and is managed by Kunal Sangoi and Dhaval Joshi. Its CAGR returns since inception are 14.94 percent. The key constituent stocks include SBI, ICICI Bank, Infosys, Ramkrishna Forgings and LTI Mindtree.
