Value Funds
Value funds invest in companies across sectors where companies currently have lower valuations but exhibit significant growth potential ahead.
Long Horizon
26 Funds
₹1,26,709 Cr Total AUM
Value funds invest in companies across sectors where companies currently have lower valuations but exhibit significant growth potential ahead.
Long Horizon
26 Funds
₹1,26,709 Cr Total AUM
Sort By
| Fund name | Fund size | Expense Ratio | 3Y Returns  |
|---|---|---|---|
 Quant Value Fund Direct Growth Value Very High Risk | ₹1,981 Cr | 0.39% | 27.1% |
 JM Value Fund Direct Growth Value Very High Risk | ₹1,524 Cr | 0.98% | 26.3% |
 HSBC Value Fund Direct Growth Value Very High Risk | ₹13,674 Cr | 0.78% | 25.0% |
 ICICI Prudential Value Discovery Fund Direct Growth Value Very High Risk | ₹48,987 Cr | 1% | 24.2% |
 Nippon India Value Fund Direct Growth Value Very High Risk | ₹8,535 Cr | 1.16% | 23.8% |
 Axis Value Fund Direct Growth Value Very High Risk | ₹785 Cr | 0.94% | 23.2% |
 Canara Robeco Value Fund Direct Growth Value Very High Risk | ₹1,273 Cr | 0.64% | 23.0% |
 Templeton India Value Fund Direct Growth Value Very High Risk | ₹2,199 Cr | 0.86% | 22.7% |
 Tata Equity P/E Fund Direct Growth Value Very High Risk | ₹8,639 Cr | 0.8% | 22.5% |
 Aditya Birla Sun Life Pure Value Fund Direct Growth Value Very High Risk | ₹6,377 Cr | 1.03% | 22.4% |
Identify red flags in your mutual funds and how to fix them
The Securities and Exchange Board of India (SEBI) defines value mutual funds as funds that follow a Value investment strategy, with at least 65% in equity and equity-related instruments.
At its core, a value fund is a type of mutual fund that primarily invests in stocks believed to be undervalued by the market.
These funds try and find investment opportunities that other funds usually dismiss or overlook.
Their main aim is to identify stocks trading below their intrinsic value and potentially benefit from their future growth.
Value investing is an investment strategy pioneered by Benjamin Graham, known as the father of value investing. He believed that market prices of stocks often fluctuated irrationally and did not necessarily reflect their underlying intrinsic value.
The concept of value investing is based on the belief that the market occasionally misprices stocks, not recognising their true potential. This allows intelligent investors to buy undervalued stocks and profit from their future appreciation.
The basis of value investing lies in calculating a stock's intrinsic value, which is its estimated true worth based on its earnings, assets, cash flow, and growth potential.
Value investors analyse financial statements, company performance, industry trends, and other relevant factors to estimate the intrinsic value of a stock.
Value investing is not the only approach fund managers take to select stocks. Growth investing is another method that invests in the growth potential of stocks.
Determining your investment style is crucial to aligning your investment objectives with the right strategy.
Are you a value investor or a growth investor? Compare the parameters in the table below to understand your investing style better.
| Value Investing | Growth Investing | |
| Investment Philosophy | Focuses on finding undervalued stocks whose intrinsic value is not recognised and has potential future growth | Focuses on investing in companies with high growth potential, even if their current valuation may seem high. |
| Investment Objective | Value investors aim to generate long-term capital appreciation by investing in undervalued stocks that have the potential to appreciate over time. | Growth investors aim to maximise capital appreciation by investing in companies with significant growth prospects that can give them good returns |
| Time Horizon | Value investing typically suits investors with a longer investment horizon | Growth investing may appeal to investors with a shorter time horizon as stocks are already in the growth phase |
| Risk appetite | Value investors need to have the willingness to withstand short-term market volatility. | Growth investors need a high-risk appetite to get rapid capital appreciation. |
Value investing takes a unique approach to investing that can benefit investors willing to capitalise on stocks that are mispriced in the market.
But an important point to remember is that while historical data shows that many value funds have delivered double-digit returns over a 10-year horizon, past performance does not guarantee future results.
Investing in value mutual funds involves risks, and it is essential to conduct thorough research, analyse the fund's and fund manager’s track record, and assess your risk tolerance before making any investment decisions.
By understanding the principles and drawbacks of value mutual funds, you can make informed investment choices that align with your financial goals.
Note- As an investor, it is crucial to align your investment philosophy and risk appetite with the objectives of the fund. Furthermore, it is advisable to consult with a financial advisor who can provide personalised guidance tailored to your specific financial goals and circumstances.
We compared 2 index funds with different investment strategies.
Since its inception on 4th February 2021 to now (26th May 2023), the Nippon India Nifty 50 Value 20 Index Fund, which follows the value investing strategy, has given 36.7% returns.
On the other hand, the UTI Nifty 50 Index Fund gave 27% returns in the same time frame.
Although funds' returns depend on market conditions, this comparison clearly shows that value strategy can work in the Indian stock market and has given investors better returns than a simple index fund.
Value funds are equity-oriented funds and are hence taxed in the same manner. If you hold your investments for more than one year, and gains are over Rs. 1 lakh, then you are taxed at 10%. If you hold it for less than one year, you will be taxed at a flat rate of 15%
The choice between value investing and growth investing depends on your-risk appetite, Time horizon, and Investment goals. If you prefer a more conservative approach and are willing to wait for the market to recognise the value of a stock, value investing matches your investment style. On the other hand, if you are comfortable with higher risk, you can choose growth investing.
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By Diversification
By Sectors & Themes
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Invest in mid-sized companies in their growth phase
Invest in the largest 250 companies in India
Invest in the largest 100 companies in India
Invest in small-sized companies in their growth phase
Tracks a market index
Hybrid funds are a combination of equity and debt investments. The blend of these asset classes varies based on the fund's investment goals.
Debt Mutual Funds invest in fixed-income securities such as government bonds, corporate bonds, treasury bills, and other money market instruments.
