Top 7 Value Mutual Funds in India That Multiplied Wealth in 5 Years

Value investing continues to prove its strength, and Indian mutual funds are a clear example. Value funds, which focus on picking fundamentally strong but undervalued stocks, have rewarded investors with remarkable returns. According to AMFI data (as of September 8, 2025), seven top-performing value mutual funds have delivered annualised returns between 23.7% and 28.8% in the last five years, easily beating benchmarks like the BSE 500 TRI and Nifty 500 TRI.

Let’s take a closer look at these top 7 value mutual funds that transformed a ₹2 lakh investment into as much as ₹7.08 lakh.

What are Value Mutual Funds?

Value funds are equity-oriented schemes that invest in companies whose current market price is below their estimated intrinsic value. Fund managers identify businesses with solid fundamentals, steady earnings potential, and long-term growth prospects, aiming to generate superior wealth when these undervalued stocks rise to their true worth.

Top 7 Best-Performing Value Funds in 5 Years

1. Bandhan Value Fund – ₹2 Lakh Became ₹7.08 Lakh

With a stellar 28.77% annualised return, Bandhan Value Fund tops the list. A lump sum investment of ₹2 lakh five years ago would now be worth over ₹7.08 lakh, making it the best value mutual fund performer.

2. Templeton India Value Fund – Wealth Grew to ₹6.88 Lakh

This scheme generated 28.02% returns annually in five years. An investment of ₹2 lakh has grown to nearly ₹6.88 lakh, reflecting its strong stock-picking approach.

3. HSBC Value Fund – Returns of 27.22%

Investors in HSBC Value Fund saw a 27.22% CAGR, with ₹2 lakh turning into ₹6.67 lakh in just five years.

4. JM Value Fund – ₹2 Lakh Became ₹6.62 Lakh

JM Value Fund delivered an impressive 27.06% annualised return, growing a ₹2 lakh investment to ₹6.62 lakh.

5. ICICI Prudential Value Fund – Consistent Wealth Builder

This fund clocked 26.92% annualised growth, meaning ₹2 lakh invested five years ago is now worth ₹6.59 lakh.

6. Nippon India Value Fund – Strong Performance at 26.48%

With an annualised return of 26.48%, Nippon India Value Fund transformed ₹2 lakh into ₹6.47 lakh over five years.

7. HDFC Value Fund – Reliable Growth at 23.7%

Though slightly lower than its peers, HDFC Value Fund still delivered 23.7% annualised returns, with ₹2 lakh growing to ₹5.79 lakh.

Value Funds vs Benchmarks

All these value funds have outperformed key indices:

• BSE 500 TRI: 20.85%
• Nifty 500 TRI: 20.89%

By beating their benchmarks by a wide margin, these funds highlight the strength of value-based investing strategies.

Why Investors Prefer Value Mutual Funds

• Long-term wealth creation through undervalued stocks
• Lower downside risk compared to growth-focused funds
• Beating market benchmarks consistently
• Suitable for investors with patience and a medium to long-term horizon

Over the last five years, these top 7 value mutual funds in India have showcased the power of disciplined stock selection and long-term investing. For investors seeking high returns with strong fundamentals, value funds remain a rewarding option. However, it is always advisable to align such investments with your financial goals and risk appetite before investing.