Prior to investing in a mutual fund, investors are advised to evaluate the performance of different schemes in the same category to gauge their historical performance. This not only gives investors a peek into the scheme’s historical performance but also tempers their expectations of its future performance.
For instance, when a scheme, like a stock, delivers an exceptional performance in the recent past, it is seen as overpriced and is not expected to deliver the same performance in future. The correct assessment, therefore, takes place when you evaluate the performance of a scheme and compare it with its contemporaries over a long period, say 10 years.
Here we list out the top-performing value funds over a 10-year period.
What are value funds?
For those who are not aware, a value mutual fund refers to schemes that follow a value investment strategy, with at least 65 per cent in stocks. These funds identify stocks that are currently undervalued but are expected to perform well over time as the value is unlocked.
Interestingly, a mutual fund house can either offer a value fund or a contra fund, as per the Sebi’s circular on categorisation and rationalisation of mutual fund schemes.
(Source: AMFI; Returns as on Jan 6, 2025)
As one can see in the table above, there are half a dozen value schemes which delivered 15 per cent annualised return in the past 10 years. The highest performance was given by JM Value Fund, which gave a 17.40 per cent return over a 10-year period.
Other mutual funds which gave a high annualised return included Bandhan Sterling Value Fund, Tata Equity PE Fund and ICICI Prudential Value Discovery Fund.
Based on the fund size, the largest top-performing value fund is ICICI Prudential Value Discovery Fund ( ₹48,439 crore) followed by HSBC Value Fund, whereas the smallest is JM Value Fund with an asset size of ₹1,095 crore.
Note: This story is for informational purposes only. Please speak to a SEBI-registered investment advisor before making any investment-related decision.