Value funds invest in stocks that are deemed to be undervalued in prices based on fundamental characteristics. They are open-ended equity schemes that follow a value investment strategy. This kind of fund invests in the shares of companies that are traded at discounted rates, and the primary reason for investors to choose these stocks is that they could be undervalued due to temporary factors but can give high returns in the long run.
It is essential to note that value funds are often misunderstood to be contra funds. Contra funds aim at identifying stocks that are temporarily out of favour, whereas value funds concentrate on stocks trading below their intrinsic value. You can have a look at some of the best value funds in the table below.
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| Fund Name | Category | Risk | 1Y Returns | Rating | Fund Size(in Cr) |
|---|---|---|---|---|---|
ICICI Prudential Value Discovery Fund | Equity | Very High | 43.6% | 5 | ₹42,664 |
JM Value Fund | Equity | Very High | 68.6% | 4 | ₹665 |
Templeton India Value Fund | Equity | Very High | 47.9% | 4 | ₹1,922 |
HSBC Value Fund | Equity | Very High | 60.8% | 4 | ₹12,067 |
Bandhan Sterling Value Fund | Equity | Very High | 44.9% | 4 | ₹8,943 |
Nippon India Value Fund | Equity | Very High | 61.1% | 3 | ₹7,523 |
Tata Equity PE Fund | Equity | Very High | 53.9% | 3 | ₹7,753 |
Union Value Fund | Equity | Very High | 48.7% | 3 | ₹237 |
Union Value Discovery Fund | Equity | Very High | 34.3% | 3 | ₹199 |
UTI Value Fund | Equity | Very High | 11.2% | 3 | ₹7,641 |
DSP Value Fund | Equity | Very High | 38.7% | 3 | ₹812 |
HDFC Capital Builder Value Fund | Equity | Very High | 46.2% | 2 | ₹6,762 |
UTI Value Fund | Equity | Very High | 42.4% | 2 | ₹8,931 |
Quantum Long Term Equity Value Fund | Equity | Very High | 41.7% | 2 | ₹1,082 |
LIC MF Long Term Value Fund | Equity | Very High | 38.5% | 2 | ₹110 |
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Value funds are likely to be suitable for-
Fund managers pick these stocks to see them grow over time and in the future, which means you will have to stay invested in the funds for the long term to witness the true growth potential. Therefore, investors with a longer investment horizon can prefer investing in them.
Value funds can provide solid returns in any market cycle for investors who have high exposure to growth stocks.
These funds’ performance may or may not improve in the future. Investors who are open to both the outcomes and have risk-bearing ability can start investing in value funds.
If you are investing lumpsum in mutual funds and looking forward to estimating your returns, simply use lumpsum calculator. It is a convenient tool that can assist you in generating your prospective returns.
There are certain factors to be considered before making investments in the top value mutual funds, and they are:
Here are some benefits of investing in the best value mutual funds:
Portfolio diversification: Value funds invest in undervalued stocks across different sectors. It helps in diversifying a portfolio with limited exposure to options with a significant risk-reward ratio.
Lower downside risk: The downside risk and the level of volatility in the case of value mutual funds is lower when compared with other types of equity funds. Since these stocks are already undervalued, they are less impacted in a bearish market.
High-growth potential: Value funds have the potential to multiply investors’ wealth significantly and maximise portfolio value over the long term.
Investment route: Investors can allocate their savings to mutual funds via two modes, namely lump sum and systematic investment plan (SIP). The first route allows individuals to invest the entire amount in one go. By opting for the SIP mode, they can invest in a value fund via fixed instalments at regular intervals (monthly, quarterly, yearly, etc.). While individuals need to invest at least Rs.1,000 if they opt for the lump sum route, they can start a SIP with Rs.100. Note that this minimum amount may vary from one scheme to another.
The risks to consider while selecting the best value mutual funds for 2024 are-
Value funds are equity mutual funds adopting a value investing strategy. The fund manager will invest in undervalued stocks that tend to trade below the intrinsic value.
They do carry a certain amount of risks, but these funds are known to outperform growth funds when strategised right.
Value funds are appropriate for long-term investors hoping to diversify their holdings. Investors with a lengthy investment horizon may be interested in them since they invest in underperforming assets but are expected to outperform in the long run.
The major benefits of these funds are that they help to diversify the investor's portfolio and, over time, provide good returns.
Value funds come with several risks, such as underperformance and inaccurate analysis of the fund manager, which can, in turn, result in downturns in your investment.
Disclaimer: Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.
Now let us jump and check about these top 15 mutual fund schemes.
Fund Performance: The ICICI Prudential Value Discovery Fund has given 25.77% annualized returns in the past three years and 23.62% in the last 5 years. The ICICI Prudential Value Discovery Fund comes under the Equity category of ICICI Prudential Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in ICICI Prudential Value Discovery Fund via lump sum is ₹1,000 and via SIP is ₹100.
| Min Investment Amt | ₹1,000 |
|---|---|
| AUM | ₹42,664Cr |
| 1Y Returns | 43.6% |
Fund Performance: The JM Value Fund has given 30.52% annualized returns in the past three years and 25.2% in the last 5 years. The JM Value Fund comes under the Equity category of JM Financial Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in JM Value Fund via lump sum is ₹1,000 and via SIP is ₹100.
| Min Investment Amt | ₹1,000 |
|---|---|
| AUM | ₹665Cr |
| 1Y Returns | 68.6% |
Fund Performance: The Templeton India Value Fund has given 28.43% annualized returns in the past three years and 23.22% in the last 5 years. The Templeton India Value Fund comes under the Equity category of Franklin Templeton Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in Templeton India Value Fund via lump sum is ₹5,000 and via SIP is ₹500.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹1,922Cr |
| 1Y Returns | 47.9% |
Fund Performance: The HSBC Value Fund has given 28.33% annualized returns in the past three years and 23.49% in the last 5 years. The HSBC Value Fund comes under the Equity category of HSBC Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in HSBC Value Fund via lump sum is ₹5,000 and via SIP is ₹500.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹12,067Cr |
| 1Y Returns | 60.8% |
Fund Performance: The Bandhan Sterling Value Fund has given 25.82% annualized returns in the past three years and 23.46% in the last 5 years. The Bandhan Sterling Value Fund comes under the Equity category of IDFC Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in Bandhan Sterling Value Fund via lump sum is ₹1,000 and via SIP is ₹100.
| Min Investment Amt | ₹1,000 |
|---|---|
| AUM | ₹8,943Cr |
| 1Y Returns | 44.9% |
Fund Performance: The Nippon India Value Fund has given 27.19% annualized returns in the past three years and 23.26% in the last 5 years. The Nippon India Value Fund comes under the Equity category of Nippon India Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in Nippon India Value Fund via lump sum is ₹500 and via SIP is ₹100.
| Min Investment Amt | ₹500 |
|---|---|
| AUM | ₹7,523Cr |
| 1Y Returns | 61.1% |
Fund Performance: The Tata Equity PE Fund has given 26.5% annualized returns in the past three years and 21.02% in the last 5 years. The Tata Equity PE Fund comes under the Equity category of Tata Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in Tata Equity PE Fund via lump sum is ₹5,000 and via SIP is ₹100.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹7,753Cr |
| 1Y Returns | 53.9% |
Fund Performance: The Union Value Fund has given 23.46% annualized returns in the past three years and 20.35% in the last 5 years. The Union Value Fund comes under the Equity category of Union Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in Union Value Fund via lump sum is ₹1,000 and via SIP is ₹500.
| Min Investment Amt | ₹1,000 |
|---|---|
| AUM | ₹237Cr |
| 1Y Returns | 48.7% |
Fund Performance: The Union Value Discovery Fund has given 22.8% annualized returns in the past three years and 19.32% in the last 5 years. The Union Value Discovery Fund comes under the Equity category of Union Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in Union Value Discovery Fund via lump sum is ₹1,000 and via SIP is ₹1,000.
| Min Investment Amt | ₹1,000 |
|---|---|
| AUM | ₹199Cr |
| 1Y Returns | 34.3% |
Fund Performance: The UTI Value Fund has given 22.33% annualized returns in the past three years and 15.8% in the last 5 years. The UTI Value Fund comes under the Equity category of UTI Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in UTI Value Fund via lump sum is ₹5,000 and via SIP is ₹500.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹7,641Cr |
| 1Y Returns | 11.2% |
Fund Performance: The DSP Value Fund comes under the Equity category of DSP Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in DSP Value Fund via lump sum is ₹100 and via SIP is ₹100.
| Min Investment Amt | ₹100 |
|---|---|
| AUM | ₹812Cr |
| 1Y Returns | 38.7% |
Fund Performance: The HDFC Capital Builder Value Fund has given 22.65% annualized returns in the past three years and 18.32% in the last 5 years. The HDFC Capital Builder Value Fund comes under the Equity category of HDFC Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in HDFC Capital Builder Value Fund via lump sum is ₹100 and via SIP is ₹100.
| Min Investment Amt | ₹100 |
|---|---|
| AUM | ₹6,762Cr |
| 1Y Returns | 46.2% |
Fund Performance: The UTI Value Fund has given 20% annualized returns in the past three years and 19.92% in the last 5 years. The UTI Value Fund comes under the Equity category of UTI Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in UTI Value Fund via lump sum is ₹5,000 and via SIP is ₹500.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹8,931Cr |
| 1Y Returns | 42.4% |
Fund Performance: The Quantum Long Term Equity Value Fund has given 18.36% annualized returns in the past three years and 15.93% in the last 5 years. The Quantum Long Term Equity Value Fund comes under the Equity category of Quantum Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in Quantum Long Term Equity Value Fund via lump sum is ₹500 and via SIP is ₹500.
| Min Investment Amt | ₹500 |
|---|---|
| AUM | ₹1,082Cr |
| 1Y Returns | 41.7% |
Fund Performance: The LIC MF Long Term Value Fund comes under the Equity category of LIC Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in LIC MF Long Term Value Fund via lump sum is ₹5,000 and via SIP is ₹1,000.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹110Cr |
| 1Y Returns | 38.5% |
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