Top Performing Value Funds in 5 Years

The below table shows a list Of the Best Value Funds Based on AUM, NAV, and minimum SIP.

Introduction to Top Performing Value Funds in 5 Years

ICICI Pru Value Discovery Fund

ICICI Prudential Value Discovery Direct-Growth is a Value Oriented mutual fund scheme from ICICI Prudential Mutual Fund. This fund has been in existence for 11 years and 8 months, having been launched on 01/01/2013.

ICICI Pru Value Discovery Fund as a value fund, manages assets valued at ₹50154.17 crore. Over the past 5 years, it has achieved a Compound Annual Growth Rate (CAGR) of 28.08%. This fund has an exit load of 1% and an expense ratio of 0.99%. According to SEBI, it falls under the Very High-risk category. The fund’s asset allocation comprises: Equity –  86.11%, Debt – 0.94%, and Other – 12.95%.

HSBC Value Fund

HSBC Value Fund Direct-Growth is a Value Oriented mutual fund scheme from HSBC Mutual Fund. This fund has been in existence for 11 years and 8 months, having been launched on 01/01/2013.

HSBC Value Fund as a value fund, manages assets valued at ₹13871.64 crore. Over the past 5 years, it has achieved a Compound Annual Growth Rate (CAGR) of 28.04%. This fund has an exit load of 1% and an expense ratio of 0.77%. According to SEBI, it falls under the Very High-risk category. The fund’s asset allocation comprises: Equity –  98.65%, No Debt, and Other – 1.35%.

Bandhan Sterling Value Fund

Bandhan Sterling Value Fund Direct Plan-Growth is a Value Oriented mutual fund scheme from Bandhan Mutual Fund. This fund has been in existence for 11 years and 8 months, having been launched on 01/01/2013.

Bandhan Sterling Value Fund as a value fund, manages assets valued at ₹10412.26 crore. Over the past 5 years, it has achieved a Compound Annual Growth Rate (CAGR) of 29.29%. This fund has an exit load of 1% and an expense ratio of 0.68%. According to SEBI, it falls under the Very High-risk category. The fund’s asset allocation comprises: Equity –  95.06%, Debt – 0.03%, and Other – 4.91%.

UTI Value Fund

UTI Value Fund Direct-Growth is a Value Oriented mutual fund scheme from UTI Mutual Fund. This fund has been in existence for 11 years and 8 months, having been launched on 01/01/2013.

UTI Value Fund as a value fund, manages assets valued at ₹10355.98 crore. Over the past 5 years, it has achieved a Compound Annual Growth Rate (CAGR) of 24.88%. This fund has an exit load of 1% and an expense ratio of 1.14%. According to SEBI, it falls under the Very High-risk category. The fund’s asset allocation comprises: Equity –  96.75%, Debt – 0.19%, and Other – 3.06%.

Tata Equity P/E Fund

Tata Equity PE Fund Direct-Growth is a Value Oriented mutual fund scheme from Tata Mutual Fund. This fund has been in existence for 11 years and 8 months, having been launched on 01/01/2013.

Tata Equity P/E Fund as a value fund, manages assets valued at ₹8864.64 crore. Over the past 5 years, it has achieved a Compound Annual Growth Rate (CAGR) of 25.35%. This fund has an exit load of 1% and an expense ratio of 0.8%. According to SEBI, it falls under the Very High-risk category. The fund’s asset allocation comprises: Equity –  96.37%, No Debt, and Other – 3.63%.

Nippon India Value Fund

Nippon India Value Fund Direct-Growth is a Value Oriented mutual fund scheme from Nippon India Mutual Fund. This fund has been in existence for 11 years and 8 months, having been launched on 01/01/2013.

Nippon India Value Fund as a value fund, manages assets valued at ₹8751.52 crore. Over the past 5 years, it has achieved a Compound Annual Growth Rate (CAGR) of 27.95%. This fund has an exit load of 1% and an expense ratio of 1.14%. According to SEBI, it falls under the Very High-risk category. The fund’s asset allocation comprises: Equity –  96.65%, No Debt, and Other – 3.35%.

HDFC Capital Builder Value Fund

HDFC Capital Builder Value Fund Direct Plan-Growth is a Value Oriented mutual fund scheme from HDFC Mutual Fund. This fund has been in existence for 11 years and 8 months, having been launched on 01/01/2013.

HDFC Capital Builder Value Fund as a value fund, manages assets valued at ₹7607.71 crore. Over the past 5 years, it has achieved a Compound Annual Growth Rate (CAGR) of 23.71%. This fund has an exit load of 1% and an expense ratio of 0.98%. According to SEBI, it falls under the Very High-risk category. The fund’s asset allocation comprises: Equity –  95.58%, No Debt, and Other – 1.42%.

Aditya Birla SL Pure Value Fund

Aditya Birla Sun Life Pure Value Direct Fund-Growth is a Value Oriented mutual fund scheme from Aditya Birla Sun Life Mutual Fund. This fund has been in existence for 11 years and 8 months, having been launched on 01/01/2013.

Aditya Birla SL Pure Value Fund as a value fund, manages assets valued at ₹6732.46 crore. Over the past 5 years, it has achieved a Compound Annual Growth Rate (CAGR) of 24.98%. This fund has an exit load of 1% and an expense ratio of 0.98%. According to SEBI, it falls under the Very High-risk category. The fund’s asset allocation comprises: Equity –  98.77%, No Debt, and Other – 1.23%.

Templeton India Value Fund

Templeton India Value Fund Direct Plan-Growth is a Value Oriented mutual fund scheme from Franklin Templeton Mutual Fund. This fund has been in existence for 11 years and 8 months, having been launched on 01/01/2013.

Templeton India Value Fund as a value fund, manages assets valued at ₹2278.96 crore. Over the past 5 years, it has achieved a Compound Annual Growth Rate (CAGR) of 28.24%. This fund has an exit load of 1% and an expense ratio of 0.83%. According to SEBI, it falls under the Very High-risk category. The fund’s asset allocation comprises: Equity –  95.25%, No Debt, and Other – 4.75%.

Quantum Long Term Equity Value Fund

Quantum Long Term Equity Value Fund Direct-Growth is a Value Oriented mutual fund scheme from Quantum Mutual Fund. This fund has been in existence for 18 years and 7 months, having been launched on 08/02/2006.

Quantum Long Term Equity Value Fund as a value fund, manages assets valued at ₹1220.47 crore. Over the past 5 years, it has achieved a Compound Annual Growth Rate (CAGR) of 20.33%. This fund has an exit load of 2% and an expense ratio of 1.1%. According to SEBI, it falls under the Very High-risk category. The fund’s asset allocation comprises: Equity –  86.01%, Debt – 13.99%, and Other – 0.01%.

What Are Value Funds?

Value funds invest in stocks that are considered undervalued relative to their intrinsic worth. These funds focus on companies trading below their true value, often due to temporary issues or market mispricing, aiming for long-term capital appreciation.

Typically, value funds seek stocks with low price-to-earnings ratios, high dividend yields, or solid fundamentals. The strategy involves identifying stocks that have the potential for significant growth once the market recognizes their true value.

Investors in value funds expect to benefit from eventual market corrections or company turnarounds. This approach can offer lower risk compared to growth stocks but may require patience as value realization can take time.

Features Of Top Performing Value Funds in 5 Years

The main features of top-performing value funds over five years include strong historical returns, disciplined stock selection, attractive valuations, and a focus on long-term growth potential.

• Strong Historical Returns: Top-performing value funds demonstrate consistent high returns over multiple years, reflecting their successful strategy in identifying undervalued stocks that eventually appreciate in value, leading to substantial gains.
• Disciplined Stock Selection: These funds employ rigorous criteria to select undervalued stocks with solid fundamentals. Their disciplined approach ensures that investments are made in companies with strong potential for recovery and growth.
• Attractive Valuations: Value funds focus on stocks trading at lower valuations relative to their intrinsic worth. This often includes low price-to-earnings ratios and high dividend yields, providing opportunities for capital appreciation as the market adjusts.
• Focus on Long-Term Growth Potential: Top-performing value funds invest with a long-term perspective, aiming to capitalize on the gradual realization of a company’s true value. This long-term focus helps navigate short-term market fluctuations and capture sustained growth.

Best Performing Value Funds in 5 Years

The table below shows the Best-performing Value Funds Based on the highest to lowest expense ratio.

Top Performing Value Funds in 5 Years In India

The table below shows the Best Value Funds Based on the Highest 3Y CAGR.

Top Performing Value Funds in 5 Years List

The table below shows the Best Performing Value Funds In India Based on Exit Load, i.e., the fee that the AMC charges investors when they exit or redeem their fund units.

Factors To Consider When Investing In Top Performing Value Funds in 5 Years

The main factors to consider when investing in top-performing value funds over five years include fund performance history, valuation metrics, management strategy, and market conditions.

• Fund Performance History: Analyze the fund’s historical returns to assess its ability to consistently identify undervalued stocks and generate positive returns. A strong track record indicates effective management and successful investment strategies.
• Valuation Metrics: Evaluate the fund’s focus on stocks with attractive valuation metrics, such as low price-to-earnings ratios or high dividend yields. This helps ensure that the fund invests in genuinely undervalued stocks with growth potential.
• Management Strategy: Consider the fund manager’s investment approach and experience. Effective management is crucial for selecting the right undervalued stocks and navigating market conditions, impacting the fund’s overall performance and stability.
• Market Conditions: Assess current and projected market conditions. Value funds can be impacted by economic cycles and market sentiment. Understanding these factors helps gauge how well the fund might perform relative to broader market trends.

How To Invest In Top Performing Value Funds in 5 Years?

To invest in top-performing value funds over five years, start by researching various funds to identify those with a strong track record of identifying undervalued stocks and delivering consistent returns. Utilize financial websites or brokerage platforms for comprehensive fund comparisons.

Next, open an account with Alice Blue that offers access to a range of value funds. These platforms provide tools for analyzing fund performance, reading manager reports, and executing trades, facilitating informed investment decisions.

Once your account is set up, allocate funds to your chosen value funds based on your investment goals and risk tolerance. Regularly review and adjust your portfolio as needed to ensure it aligns with your long-term financial objectives and market conditions.

Advantages Of Investing In Top Performing Value Funds in 5 Years?

The main advantages of investing in top-performing value funds over five years include the potential for significant capital appreciation, lower investment risk, dividend income, and diversification benefits.

• Potential for Significant Capital Appreciation: Value funds invest in undervalued stocks with growth potential. As these stocks recover and their true value is recognized, investors can experience substantial capital appreciation over the long term.
• Lower Investment Risk: By focusing on undervalued companies with solid fundamentals, value funds often carry lower risk compared to growth stocks. The strategy aims to minimize downside risk and provides a margin of safety through attractive valuations.
• Dividend Income: Many value stocks offer higher dividend yields due to their lower valuations. Investing in value funds can provide a steady income stream from dividends, enhancing overall returns and adding stability to your investment portfolio.
• Diversification Benefits: Value funds typically invest in a broad range of undervalued stocks across various sectors. This diversification helps spread risk and reduce the impact of any single stock’s poor performance on the overall fund.

Risks Of Investing In Top Performing Value Funds in 5 Years?

The main risks of investing in top-performing value funds over five years include the potential for prolonged underperformance, value trap risks, market volatility, and changing economic conditions.

• Prolonged Underperformance: Value funds may experience extended periods of underperformance if the market fails to recognize the intrinsic value of the invested stocks promptly, potentially impacting returns over the long term.
• Value Trap Risks: Some undervalued stocks might remain undervalued due to underlying business issues. Investing in these “value traps” can lead to poor returns if the companies do not recover or improve as expected.
• Market Volatility: Value funds can be affected by market fluctuations and economic downturns. While focusing on undervalued stocks, they may still experience significant volatility that impacts the fund’s performance and investor returns.
• Changing Economic Conditions: Shifts in economic conditions, such as rising interest rates or inflation, can affect the performance of value stocks. These changes might alter the attractiveness of undervalued stocks and influence overall fund returns.

Importance of Value Funds

Value funds are important because they focus on investing in undervalued stocks with strong fundamentals, offering the potential for significant long-term capital appreciation. This approach aims to capitalize on market inefficiencies and provide investors with opportunities for higher returns.

Additionally, value funds often carry lower risk compared to growth stocks, as they emphasize companies trading below their intrinsic value. This conservative strategy can offer stability and generate steady income through dividends, making value funds a crucial component of a diversified investment portfolio.

How Long to Stay Invested in Value Funds?

It is generally recommended to stay invested in value funds for at least 5 to 10 years to fully realize their potential benefits. This longer time horizon allows undervalued stocks to appreciate as their true value is recognized by the market.

Value funds may experience periods of underperformance, so a longer investment period helps mitigate short-term volatility and market fluctuations. Staying invested for the long term can lead to better overall returns as the market adjusts and the stocks’ intrinsic value becomes more apparent.

Tax Implications of Investing in Value Funds

Investing in value funds can lead to capital gains tax when you sell shares at a profit. Long-term capital gains, from investments held over a year, are generally taxed at a lower rate compared to short-term gains from holdings of one year or less.

Dividends from value funds may also be subject to income tax based on your tax bracket. Understanding these tax implications helps in planning your investments and optimizing your overall tax strategy to minimize liabilities and maximize returns.

Future of Value Funds

The future of value funds looks promising as market volatility and economic uncertainties may highlight undervalued stocks with strong fundamentals. As investors seek stability and long-term growth, value funds could benefit from a renewed focus on intrinsic value and fundamental analysis.

However, value funds may face challenges if growth stocks outperform or if economic conditions change rapidly. Adapting to shifting market dynamics and evolving investment trends will be crucial for value funds to continue delivering attractive returns and meeting investor expectations.

Top Performing Value Funds in 5 Years – FAQs 

We hope you’re clear on the topic, but there’s more to explore in stocks, commodities, mutual funds, and related areas. Here are important topics to learn about.

Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time. The securities quoted are exemplary and are not recommendatory.