Keeping track of the mutual fund returns is key to evaluating their overall performance. Some mutual funds tend to give a higher return in relation to their benchmark indices whereas some offer muted returns.
Here we talk about the value funds which have managed to beat the benchmark index returns consistently in the past five years.
What are value funds?
Value funds are the ones which comprise stocks whose market value is less than their intrinsic value. In other words, they are mutual funds which are undervalued and thus, have a greater potential to grow because their stock price is not the true indicator of their worth.
Overall, there are 22 mutual fund schemes in the value fund category, as per the latest AMFI data. The month of August saw an addition of ₹354 crore to this category. and net assets under management as on Aug 31, 2022 were ₹85,681 crore.
As we can see in the table below, there were four mutual funds which managed to beat the benchmark. These were ICICI Prudential Value Discovery Fund, Indiabulls Value Fund, Templeton India Value Fund and UTI Value Opportunities Fund.
|Mutual Fund Scheme||5-year-returns (%)||Benchmark (%)|
|ICICI Prudential Value Discovery Fund||13.76||12.89*|
|UTI Value Opportunities Fund||13.13||12.89|
|Indiabulls Value Fund||5.36||4.90**|
|Templeton India Value Fund||11.09||4.90|
(Regular returns as on Sept 20, 2022)
(*NIFTY 500 Total Return Index. ** Nifty 500 Value 50 Total Return Index).
|MF Scheme||3-year-returns (%)||Benchmark (%)|
|ICICI Prudential Value Discovery Fund||24.00||20.10*|
|IDFC Sterling Value Fund||26.31||20.46**|
|Nippon India Value Fund||21.54||20.10|
|UTI Value Opportunities Fund||20.57||20.10|
(Regular returns as on Sept 20, 2022).
(*NIFTY 500 Total Return Index, **S&P BSE 500 Total Return Index)
Likewise, as we can see in the table above, the mutual funds that could beat their benchmark index funds in the past three years were ICICI Prudential Value Discovery Fund, IDFC Sterling Value Fund, Nippon India Value Fund and UTI Value Opportunities Fund. Out of these four, there are two (ICICI Value Discovery and UTI Value Opportunities) which have surpassed the benchmark indices in the past five years as well.