Mutual fund returns: These value funds gave over 12 percent returns in the past; See list

The rate of returns delivered by mutual funds in the past is one of the important factors that help determine their performance. However, there are a number of other factors too that go into evaluating the fund scheme’s overall performance such as macro economic factors, reputation of fund house, stock selection, among others. 

Here we take a look at the value funds and returns delivered by some top-performing fund schemes. But before we proceed, we try and define what exactly are value funds. 

A value fund aims to invest in stocks which are considered undervalued in price based on their key characteristics. It is often compared with growth investing wherein investment in made in emerging companies with high growth prospects.

(Source: AMFI data; Regular returns as on Aug 16, 2022)

Some value funds gave annualised returns in single digits such as Aditya Birla Sun Life Pure Value Fund gave 4.96 percent return whereas Indiabulls Value Fund gave a return of 6.14 percent. However, the returns given by top-performing funds was in the range of 12-14 percent, as shown in the table above.

For instance, ICICI Prudential Value Discovery Fund gave 14.11 percent return, Nippon India Value Fund gave 13.38 percent return and UTI Value Opportunities Fund gave 13.04 per cent return.

Three-year returns

Regardless of moderately good long-term returns during past five years, the past three-year returns were exceptionally good. A number of top-performing fund schemes delivered more than 20 percent return, as shown in the table below.

However, there were a couple of funds that delivered lower than 20 percent annualised returns such as Quantum Long Term Equity Value Fund which gave 14.96 percent return and Tata Equity PE Fund which gave 16.94 percent return in the past three years.

(Source: AMFI; regular returns as on August 16, 2022)

According to the latest data available, there are 22 mutual funds in the value/ contra fund category. The net assets under management (AUMs) amount to ₹82,030 crore as on July 31, 2022 and net inflow in this category of mutual funds during the month of July stood at ₹427 crore against ₹847 crore in the preceding month of June, a fall of nearly 50 percent.