The table below shows the Best Value Funds In India based on AUM, NAV, and Minimum SIP.
| Name | AUM Cr | NAV | Minimum SIP Rs |
| ICICI Pru Value Discovery Fund | 48,805.97 | 499.60 | 5,000.00 |
| HSBC Value Fund | 13,357.64 | 120.24 | 100.00 |
| UTI Value Fund | 10,355.98 | 183.56 | 500.00 |
| Bandhan Sterling Value Fund | 10,241.88 | 171.57 | 100.00 |
| Tata Equity P/E Fund | 8,864.64 | 412.77 | 100.00 |
| Nippon India Value Fund | 8,559.62 | 247.01 | 5,000.00 |
| HDFC Capital Builder Value Fund | 7,607.71 | 811.29 | 5,000.00 |
| Aditya Birla SL Pure Value Fund | 6,225.78 | 148.88 | 100.00 |
| Templeton India Value Fund | 2,246.77 | 828.38 | 100.00 |
| Quantum Long Term Equity Value Fund | 1,163.55 | 129.53 | 100.00 |
Introduction to Best Value Mutual Funds
ICICI Pru Value Discovery Fund
ICICI Pru Value Discovery Fund, Category: Value Fund, with an AUM of ₹48,805.97 Crore, 5Y CAGR of 28.83%, an exit load of 1%, and an expense ratio of 0.99%, reflects a strong value-based investment approach.
ICICI Prudential Value Discovery Direct Growth is an Equity Mutual Fund Scheme launched by ICICI Prudential Mutual Fund. This scheme was made available to investors on 12 Oct 1993. The fund’s asset allocation consists of 86.1% in equity, 12.6% in cash, and 1.2% in debt, reflecting a balanced focus on equities with moderate liquidity and minimal debt exposure.
HSBC Value Fund
HSBC Value Fund, Category: Value Fund, having an AUM of ₹13,357.64 Crore, 5Y CAGR of 28.56%, an exit load of 1%, and an expense ratio of 0.77%, offers solid returns for value-focused investors.
HSBC Value Fund Direct Growth is an Equity Mutual Fund Scheme launched by HSBC Mutual Fund. This scheme was made available to investors on 27 May 2002. The fund allocates 98.5% to equity, and 1.5% to cash, and has no debt holdings, emphasizing a strong equity focus with a small cash reserve for liquidity.
UTI Value Fund
UTI Value Fund, Category: Value Fund, with an AUM of ₹10,355.98 Crore, 5Y CAGR of 25.42%, an exit load of 1%, and an expense ratio of 1.13%, provides consistent performance in the value fund category.
UTI Value Fund Direct Growth is an Equity Mutual Fund Scheme launched by UTI Mutual Fund. This scheme was made available to investors on 14 Nov 2002. The fund’s asset allocation includes 96.1% in equity, 3.7% in cash, and 0.2% in debt, highlighting a predominantly equity-driven approach with modest liquidity and minimal debt exposure.
Bandhan Sterling Value Fund
Bandhan Sterling Value Fund, Category: Value Fund, with an AUM of ₹10,241.88 Crores, a 5-year CAGR of 30.02%, an exit load of 1%, and an expense ratio of 0.68%, demonstrates a strong performance-driven value investment approach.
Bandhan Sterling Value Fund Direct Plan-Growth is an Equity Mutual Fund Scheme launched by Bandhan Mutual Fund. This scheme was made available to investors on 20 Dec 1999. The fund allocates 95.1% to equity, with no exposure to debt, and maintains 4.9% in cash for liquidity. This strategy emphasizes equity while keeping a small cash reserve.
Tata Equity P/E Fund
Tata Equity P/E Fund, Category: Value Fund, with an AUM of ₹8,864.64 Crores, a 5-year CAGR of 25.64%, an exit load of 1%, and an expense ratio of 0.80%, showcases a balanced value-based investment strategy.
Tata Equity PE Fund Direct Growth is an Equity Mutual Fund Scheme launched by Tata Mutual Fund. This scheme was made available to investors on 30 Jun 1995. This fund’s allocation consists of 96.4% in equities, no debt exposure, and 3.6% held in cash, emphasizing a strong equity focus with minimal cash for liquidity.
Nippon India Value Fund
Nippon India Value Fund, Category: Value Fund, with an AUM of ₹8,559.62 Crores, a 5-year CAGR of 28.59%, an exit load of 1%, and an expense ratio of 1.15%, focuses on maximizing returns through value investments.
Nippon India Value Fund Direct Growth is an Equity Mutual Fund Scheme launched by Nippon India Mutual Fund. This scheme was made available to investors on 30 Jun 1995. The fund’s allocation includes 96.6% in equities, with no debt exposure, and a 3.4% cash position, prioritizing equity investments while maintaining a small liquidity reserve.
HDFC Capital Builder Value Fund
HDFC Capital Builder Value Fund, Category: Value Fund, with an AUM of ₹7,607.71 Crores, a 5-year CAGR of 24.03%, an exit load of 1%, and an expense ratio of 0.98%, emphasizes long-term value investing.
HDFC Capital Builder Value Fund Direct Plan-Growth is an Equity Mutual Fund Scheme launched by HDFC Mutual Fund. This scheme was made available to investors on 10 Dec 1999. The fund’s allocation is heavily weighted towards equities at 98.6%, with no debt exposure, and a minimal 1.4% in cash, emphasizing strong equity positioning.
Aditya Birla SL Pure Value Fund
Aditya Birla SL Pure Value Fund, Category: Value Fund, with an AUM of ₹6,225.78 Crores, a 5-year CAGR of 26.26%, an exit load of 1%, and an expense ratio of 0.98%, highlights a focused value-oriented investment approach.
Aditya Birla Sun Life Pure Value Direct Fund Growth is an Equity Mutual Fund Scheme launched by Aditya Birla Sun Life Mutual Fund. This scheme was made available to investors on 23 Dec 1994. The fund allocates 98.8% to equities, with no debt exposure, and holds 1.2% in cash, focusing heavily on equity investments while keeping a small portion in cash for liquidity.
Templeton India Value Fund
Templeton India Value Fund, Category: Value Fund, with an AUM of ₹2,246.77 Crores, a 5-year CAGR of 29.23%, an exit load of 1%, and an expense ratio of 0.83%, reflects a disciplined value-based investment strategy.
Templeton India Value Fund Direct Plan Growth is an Equity Mutual Fund Scheme launched by Franklin Templeton Mutual Fund. This scheme was made available to investors on 19 Feb 1996. This fund allocates 95.2% to equities, holds no debt, and maintains 2.8% in cash, emphasizing equity investments with a small cash reserve for liquidity management.
Quantum Long Term Equity Value Fund
Quantum Long Term Equity Value Fund, Category: Value Fund, with an AUM of ₹1,163.55 Crores, a 5-year CAGR of 20.47%, an exit load of 2%, and an expense ratio of 1.10%, takes a conservative approach to value investing.
Quantum Long Term Equity Value Fund Direct-Growth is an Equity Mutual Fund Scheme launched by Quantum Mutual Fund. This scheme was made available to investors on 19 Sep 2005. The fund’s asset allocation includes 86% in equities and 14% in debt, with no other investments, balancing a strong equity focus with significant debt exposure for stability.
Value Mutual Funds Meaning
Value mutual funds invest in undervalued stocks that are trading below their intrinsic value. These funds aim to generate long-term capital appreciation by purchasing shares of companies with strong fundamentals but lower market valuations.
Features of the Best Value Mutual Funds India
The main features of the best-value mutual funds in India include strong fundamentals, potential for long-term growth, consistent returns, and a focus on undervalued stocks. These characteristics help investors achieve solid returns over time.
- Strong Fundamentals:
Best value funds invest in companies with robust financials, such as high profitability, strong balance sheets, and low debt levels. These fundamentals support the stock’s potential for future growth and recovery.
- Potential for Long-Term Growth:
Value mutual funds focus on stocks with growth potential, even if they are currently underperforming. Over time, as market conditions improve, these stocks are likely to see significant appreciation.
- Consistent Returns:
The best value mutual funds deliver consistent returns by balancing risk and return. They invest in companies that may provide steady earnings over time, offering reliable returns to long-term investors.
- Focus on Undervalued Stocks:
These funds prioritize purchasing stocks trading at a discount to their intrinsic value, aiming to capitalize on market inefficiencies. As the market recognizes these undervalued opportunities, stock prices tend to increase, benefiting the investor.
Top Value Mutual Funds Based on Expense Ratio
The table below shows Top Value Mutual Funds Based on Expense Ratio.
| Name | Expense Ratio | Minimum SIP Rs |
| Bandhan Sterling Value Fund | 0.68 | 100.00 |
| HSBC Value Fund | 0.77 | 100.00 |
| Tata Equity P/E Fund | 0.80 | 100.00 |
| Templeton India Value Fund | 0.83 | 100.00 |
| Groww Value Fund | 0.90 | 100.00 |
| JM Value Fund | 0.91 | 250.00 |
| HDFC Capital Builder Value Fund | 0.98 | 5,000.00 |
| Aditya Birla SL Pure Value Fund | 0.98 | 100.00 |
| ICICI Pru Value Discovery Fund | 0.99 | 5,000.00 |
| Quantum Long Term Equity Value Fund | 1.10 | 100.00 |
Best Value Mutual Funds Based on 3Y CAGR
The table below shows Best Value Mutual Funds Based on 3Y CAGR.
| Name | CAGR 3Y | Minimum SIP |
| JM Value Fund | 33.32 | 250.00 |
| Templeton India Value Fund | 29.22 | 100.00 |
| HSBC Value Fund | 28.34 | 100.00 |
| ICICI Pru Value Discovery Fund | 28.05 | 5,000.00 |
| Tata Equity P/E Fund | 27.66 | 100.00 |
| Nippon India Value Fund | 27.51 | 5,000.00 |
| Bandhan Sterling Value Fund | 26.92 | 100.00 |
| Aditya Birla SL Pure Value Fund | 26.54 | 100.00 |
| HDFC Capital Builder Value Fund | 23.36 | 5,000.00 |
| Union Value Fund | 23.31 | 500.00 |
Top 10 Best Value Funds In India Based on Exit Load
The table below shows the Top 10 Best Value Funds In India Based on Exit Load.
| Name | AMC | Exit Load % |
| JM Value Fund | JM Financial Asset Management Private Limited | 1.00 |
| Templeton India Value Fund | Franklin Templeton Asset Management (India) Private Limited | 1.00 |
| HSBC Value Fund | HSBC Global Asset Management (India) Private Limited | 1.00 |
| ICICI Pru Value Discovery Fund | ICICI Prudential Asset Management Company Limited | 1.00 |
| Tata Equity P/E Fund | Tata Asset Management Private Limited | 1.00 |
| Nippon India Value Fund | Nippon Life India Asset Management Limited | 1.00 |
| Bandhan Sterling Value Fund | Bandhan AMC Limited | 1.00 |
| Aditya Birla SL Pure Value Fund | Aditya Birla Sun Life AMC Limited | 1.00 |
| HDFC Capital Builder Value Fund | HDFC Asset Management Company Limited | 1.00 |
| Union Value Fund | Union Asset Management Company Pvt. Ltd. | 1.00 |
Value Mutual Funds Returns
The table below shows the Value Mutual Funds Returns based on CAGR 1Y
| Name | Absolute Returns – 1Y % |
| JM Value Fund | 60.95 |
| Nippon India Value Fund | 54.33 |
| Tata Equity P/E Fund | 53.94 |
| HSBC Value Fund | 51.65 |
| Aditya Birla SL Pure Value Fund | 49.86 |
| UTI Value Fund | 47.61 |
| HDFC Capital Builder Value Fund | 46.70 |
| Templeton India Value Fund | 46.44 |
| LIC MF Value Fund | 45.78 |
| ICICI Pru Value Discovery Fund | 44.36 |
Historical Performance of Value Funds
The table below shows Historical Performance of Value Funds based on CAGR 5Y
| Name | CAGR 5Y % |
| JM Value Fund | 31.19 |
| Bandhan Sterling Value Fund | 30.02 |
| Templeton India Value Fund | 29.23 |
| ICICI Pru Value Discovery Fund | 28.83 |
| Nippon India Value Fund | 28.59 |
| HSBC Value Fund | 28.56 |
| Aditya Birla SL Pure Value Fund | 26.26 |
| Tata Equity P/E Fund | 25.64 |
| UTI Value Fund | 25.42 |
| Union Value Fund | 25.21 |
Factors to Consider When Investing in Value Mutual Funds
The main factors to consider when investing in value mutual funds include the fund’s historical performance, stock selection process, expense ratio, and overall market conditions. These factors influence long-term growth and stability.
- Historical Performance:
Review the fund’s track record to evaluate its long-term success in identifying undervalued stocks. Consistent performance over different market cycles indicates a strong ability to capitalize on market inefficiencies.
- Stock Selection Process:
Check how the fund identifies undervalued stocks. Funds with a disciplined approach to stock selection, emphasizing strong fundamentals and growth potential, are more likely to deliver steady returns over time.
- Expense Ratio:
Low-cost funds tend to generate better returns for investors, as higher expenses can erode gains. Evaluate the expense ratio and ensure it aligns with the fund’s performance and long-term investment strategy.
- Market Conditions:
Value funds perform well in recovering or stable markets. Assess the current market environment, as value stocks may struggle in bearish conditions but excel during economic recoveries when undervalued stocks regain momentum.
How to Invest In Best Value Funds?
To invest in the best value funds, research the fund’s past performance, manager expertise, and portfolio holdings. Ensure the fund aligns with your long-term financial goals and risk tolerance to maximize returns.
Start by opening a demat or mutual fund account with a broker or investment platform. Choose a value fund based on your investment horizon and place your order online. Regularly monitor your investment and adjust as needed.
Impact of Market Trends on Top Value Mutual Funds
Market trends significantly affect value mutual funds, as they perform better in a recovering economy. When markets are bullish, undervalued stocks gain momentum, boosting the performance of value funds.
During bearish trends, value funds may face challenges since undervalued stocks take time to recover. However, patient investors benefit from holding these funds as long-term market trends tend to favor value-based strategies.
How Value Funds Perform in Volatile Markets?
In volatile markets, value funds may underperform in the short term as investors favor growth stocks. However, they often recover as market conditions stabilize, making them suitable for long-term investors seeking opportunities in undervalued stocks.
Volatility can create buying opportunities for fund managers to acquire undervalued stocks at discounted prices. Over time, these stocks tend to recover, providing consistent returns for value fund investors who stay the course.
Advantages of Investing in Value Mutual Funds
The main advantages of investing in value mutual funds include lower risk compared to growth funds, strong long-term growth potential, and opportunities to invest in high-quality companies trading below their intrinsic value.
- Lower Risk:
Value mutual funds generally invest in companies with stable cash flows and strong fundamentals, making them less volatile compared to growth funds, particularly during market downturns.
- Strong Long-Term Growth Potential:
Undervalued stocks often have the potential for significant growth as market conditions improve. Over time, these investments may outperform growth stocks, especially in recovering economies.
- Investment in Quality Companies:
Value funds focus on high-quality companies that are temporarily undervalued. As these stocks regain their true value, investors benefit from both capital appreciation and steady dividend income.
- Consistent Dividend Income:
Many value stocks offer regular dividend payments, providing investors with a steady income stream in addition to capital gains, making these funds appealing to income-focused investors.
Risks of Investing in Value Funds In India
The main risks of investing in value funds in India include prolonged underperformance during certain market cycles, sector concentration risks, and the potential for stock prices to remain undervalued longer than expected.
- Prolonged Underperformance:
In bullish markets, value funds may lag behind growth-oriented funds. Undervalued stocks can take time to regain momentum, leading to periods of underperformance compared to more aggressive growth strategies.
- Sector Concentration:
Value funds may have concentrated exposure to specific sectors, such as utilities or financials. This can increase risk if these sectors underperform or face regulatory challenges, affecting the overall fund performance.
- Market Timing Risk:
Value stocks can remain undervalued for extended periods, especially during periods of market uncertainty. Investors may need patience as it can take time for these stocks to recover and reflect their true value.
- Economic Risks:
Economic slowdowns or adverse conditions in India can impact the performance of value funds. If companies within the portfolio face operational challenges, stock prices may remain depressed, reducing overall returns.
Contribution of Value Funds to Portfolio Diversification
Value funds contribute to portfolio diversification by providing exposure to high-quality, undervalued stocks, balancing the risk of more volatile assets. They help spread risk across different sectors and asset classes, stabilizing overall portfolio performance.
Including value funds ensures a mix of growth and stability in your investment strategy. As value stocks recover over time, they offer both capital appreciation and steady dividend income, enhancing the portfolio’s long-term returns.
Who Should Invest In Value Funds?
Value funds are ideal for long-term investors who seek stable growth and are willing to wait for undervalued stocks to recover. They suit those looking for steady returns with a lower risk profile than growth funds.
These funds are also suitable for income-focused investors, as value stocks often provide regular dividend payments. Investors seeking portfolio diversification and exposure to high-quality, fundamentally sound companies should consider value funds.
Impact of Fund Manager Expertise on Value Mutual Fund Performance
Fund manager expertise plays a critical role in the performance of value mutual funds. Experienced managers can identify undervalued stocks with strong growth potential, helping investors achieve better returns over the long term.
An adept fund manager also mitigates risks by diversifying across sectors and rebalancing the portfolio when necessary. Their ability to capitalize on market inefficiencies directly influences the overall success of the value fund.
How Much Money Should I Invest In a Value Fund?
The amount to invest in a value fund depends on your financial goals, risk tolerance, and investment horizon. A balanced approach involves allocating a percentage of your portfolio to value funds, ensuring diversity and long-term growth.
It’s advisable to start with an amount that aligns with your risk profile. Monitor the performance regularly and adjust the investment based on market trends and your financial situation to maximize returns while minimizing risks.
FAQs – Value Funds In India
A value fund in mutual funds focuses on investing in undervalued stocks with strong fundamentals. These stocks are expected to deliver long-term growth as their market value increases over time.
Top 5 Value Mutual Funds #1: ICICI Pru Value Discovery Fund
Top 5 Value Mutual Funds #2: HSBC Value Fund
Top 5 Value Mutual Funds #3: UTI Value Fund
Top 5 Value Mutual Funds #4: Bandhan Sterling Value Fund
Top 5 Value Mutual Funds #5: Tata Equity P/E Fund
Top 5 Value Mutual Funds Based on AUM.
Best Value Mutual Funds based on 1-year return include JM Value Fund, Nippon India Value Fund, Tata Equity P/E Fund, HSBC Value Fund, and Aditya Birla SL Pure Value Fund.
Investing in value funds can be relatively safe for long-term investors, as they focus on undervalued stocks. However, they may experience volatility in the short term due to market conditions.
The best-performing value mutual fund varies over time. Currently, funds with a history of consistent returns and investments in undervalued, strong-performing companies offer the best potential for long-term gains.
To invest in the best value mutual fund, research the fund’s performance history, management team, and portfolio composition. Use a brokerage platform or seek advice from a financial advisor for expert guidance.
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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.
