Value Mutual Funds: These 5 Schemes Lead on Returns and Alpha Across Different Time Periods
Value mutual funds follow an investment approach centred on finding shares that fund managers believe are trading below their underlying worth. The strategy is based on the expectation that valuations could improve as the market eventually recognises the companies' fundamentals.
For investors assessing equity mutual funds , however, a strong recent return may not be enough to judge a scheme's performance. Looking across several timeframes can provide a broader picture of how consistently a fund has performed.
The approach can take time to play out. A stock may remain undervalued for an extended period before its valuation changes, which means investors generally need to assess such funds with a longer-term perspective.
As of August 2026, there were 23 schemes in the value fund category, according to industry data. The performance rankings below use direct-plan data, with one-year returns and alpha measured as specified in the respective datasets and three- and five-year figures presented as compound annual growth rates.
Quant Value Fund was next with an 11.71% return. ABSL Value Fund secured the third position with 8.68%, followed by Mahindra Manulife Value Fund at 7.33%.
Axis Value Fund rounded out the top five with a one-year return of 5.31%.
These figures highlight the considerable gap between the leading scheme and the other funds in the one-year ranking. However, a single-year performance window can be heavily influenced by market conditions and therefore does not necessarily establish long-term consistency.
Quant Value Fund moves to the top with a compound annual growth rate of 19.26%. LIC MF Value Fund follows at 16.78%, while Axis Value Fund records 16.56%.
DSP Value Fund occupies the fourth position with 15.36%, and HDFC Value Fund completes the top five with 14.72%.
The three-year numbers provide a different perspective from the one-year table. Quant Value Fund, which ranked second over one year, moves into first place over the longer period, while Axis Value Fund also features prominently.
Axis Value Fund records a 15.37% compound annual growth rate, making it the leading value fund on this measure. HSBC Value Fund follows with 14.87%, while JM Value Fund posts 14.15%.
ABSL Value Fund ranks fourth at 13.42%, followed by HDFC Value Fund at 13.12%.
The five-year data also brings some different names into the leading group. This underlines why investors comparing value funds may benefit from looking beyond a single performance period.
Axis Value Fund is the only fund to feature among the top five in the one-year, three-year and five-year rankings. It ranks fifth over one year, third over three years and first over five years.
That does not, by itself, establish that the scheme is the most suitable choice for every investor. According to investment experts, consistency in historical performance is one factor that can be considered alongside risk, portfolio composition, costs, investment strategy and an investor's own financial objectives.
Quant Value Fund and LIC MF Value Fund also show notable consistency, although across fewer periods. Both appear in the top five for one-year and three-year returns.
HDFC Value Fund features in the top five over three and five years, while DSP Value Fund appears in the three-year table.
As of 30 September 2026, Quant Value Fund recorded the highest alpha among the five funds listed, at 9.39%.
LIC MF Value Fund followed with an alpha of 7.36%, while Axis Value Fund stood at 7.07%. DSP Value Fund recorded 6.69%, and HDFC Value Fund posted 5.27%.
The category's average alpha was 2.94%. Each of these five funds therefore recorded alpha above that category average during the period measured.
Axis Value Fund is particularly notable because it is the only scheme appearing in the top five across all three return periods. It also ranks third among the five funds listed for alpha, at 7.07%.
Quant Value Fund offers another strong combination in the available data. It leads the three-year return table and also has the highest alpha among the five funds shown, while ranking second over one year.
LIC MF Value Fund tops the one-year return chart and ranks second over three years. Its 7.36% alpha also places it second among the five funds listed.
HDFC Value Fund appears among the leading schemes over both three and five years, while its alpha of 5.27% is above the category average.
DSP Value Fund's strongest showing among the return rankings comes over three years, when it ranks fourth. Its alpha of 6.69% is also above the category average.
That variation is important because fund selection based solely on the latest return could overlook how a scheme has performed through different market phases.
Historical performance, including alpha, can provide useful information, but it cannot predict future returns. Investors should also examine factors such as portfolio concentration, the fund manager's investment approach, risk levels, expense ratio, investment horizon and how well the scheme fits their overall asset allocation.
For investors specifically considering value funds, comparing multiple periods rather than focusing on a single annual return can provide a more balanced assessment. The available data also suggests that consistency and benchmark-relative performance can offer additional context when evaluating competing schemes.
Disclaimer: This content is for informational purposes only and should not be considered investment advice. Mutual fund investments are subject to market risks. Past performance and alpha do not guarantee future returns. Investors should assess their financial goals, risk tolerance and investment horizon before making investment decisions.
For investors assessing equity mutual funds , however, a strong recent return may not be enough to judge a scheme's performance. Looking across several timeframes can provide a broader picture of how consistently a fund has performed.
How value mutual funds work
Value funds are required to invest at least 65% of their assets in equities while following a value-oriented investment strategy. Fund managers typically search for companies whose market valuations appear lower than what their business fundamentals may suggest.The approach can take time to play out. A stock may remain undervalued for an extended period before its valuation changes, which means investors generally need to assess such funds with a longer-term perspective.
As of August 2026, there were 23 schemes in the value fund category, according to industry data. The performance rankings below use direct-plan data, with one-year returns and alpha measured as specified in the respective datasets and three- and five-year figures presented as compound annual growth rates.
LIC MF Value Fund leads over one year
The one-year performance table is headed by LIC MF Value Fund, which delivered a 19.65% return as of 1 October 2026.Quant Value Fund was next with an 11.71% return. ABSL Value Fund secured the third position with 8.68%, followed by Mahindra Manulife Value Fund at 7.33%.
Axis Value Fund rounded out the top five with a one-year return of 5.31%.
These figures highlight the considerable gap between the leading scheme and the other funds in the one-year ranking. However, a single-year performance window can be heavily influenced by market conditions and therefore does not necessarily establish long-term consistency.
Quant Value Fund takes the three-year lead
The ranking changes when the investment period is extended to three years.Quant Value Fund moves to the top with a compound annual growth rate of 19.26%. LIC MF Value Fund follows at 16.78%, while Axis Value Fund records 16.56%.
DSP Value Fund occupies the fourth position with 15.36%, and HDFC Value Fund completes the top five with 14.72%.
The three-year numbers provide a different perspective from the one-year table. Quant Value Fund, which ranked second over one year, moves into first place over the longer period, while Axis Value Fund also features prominently.
Axis Value Fund leads over five years
The five-year ranking produces another change at the top.Axis Value Fund records a 15.37% compound annual growth rate, making it the leading value fund on this measure. HSBC Value Fund follows with 14.87%, while JM Value Fund posts 14.15%.
ABSL Value Fund ranks fourth at 13.42%, followed by HDFC Value Fund at 13.12%.
The five-year data also brings some different names into the leading group. This underlines why investors comparing value funds may benefit from looking beyond a single performance period.
Axis Value Fund shows the strongest consistency
One scheme stands out when the three return periods are considered together.Axis Value Fund is the only fund to feature among the top five in the one-year, three-year and five-year rankings. It ranks fifth over one year, third over three years and first over five years.
That does not, by itself, establish that the scheme is the most suitable choice for every investor. According to investment experts, consistency in historical performance is one factor that can be considered alongside risk, portfolio composition, costs, investment strategy and an investor's own financial objectives.
Quant Value Fund and LIC MF Value Fund also show notable consistency, although across fewer periods. Both appear in the top five for one-year and three-year returns.
HDFC Value Fund features in the top five over three and five years, while DSP Value Fund appears in the three-year table.
Alpha adds another layer to the comparison
Return rankings do not tell the entire story. Investors comparing actively managed funds may also examine alpha, which measures a fund's excess performance relative to its benchmark, with the calculation taking risk into account.As of 30 September 2026, Quant Value Fund recorded the highest alpha among the five funds listed, at 9.39%.
LIC MF Value Fund followed with an alpha of 7.36%, while Axis Value Fund stood at 7.07%. DSP Value Fund recorded 6.69%, and HDFC Value Fund posted 5.27%.
The category's average alpha was 2.94%. Each of these five funds therefore recorded alpha above that category average during the period measured.
Which funds combine returns and alpha?
Looking at both performance consistency and alpha produces a more nuanced comparison.Axis Value Fund is particularly notable because it is the only scheme appearing in the top five across all three return periods. It also ranks third among the five funds listed for alpha, at 7.07%.
Quant Value Fund offers another strong combination in the available data. It leads the three-year return table and also has the highest alpha among the five funds shown, while ranking second over one year.
LIC MF Value Fund tops the one-year return chart and ranks second over three years. Its 7.36% alpha also places it second among the five funds listed.
HDFC Value Fund appears among the leading schemes over both three and five years, while its alpha of 5.27% is above the category average.
DSP Value Fund's strongest showing among the return rankings comes over three years, when it ranks fourth. Its alpha of 6.69% is also above the category average.
Why investors should look beyond the latest return
The data shows that the leading value fund can change depending on the period being examined. LIC MF Value Fund leads over one year, Quant Value Fund over three years and Axis Value Fund over five years.That variation is important because fund selection based solely on the latest return could overlook how a scheme has performed through different market phases.
Historical performance, including alpha, can provide useful information, but it cannot predict future returns. Investors should also examine factors such as portfolio concentration, the fund manager's investment approach, risk levels, expense ratio, investment horizon and how well the scheme fits their overall asset allocation.
For investors specifically considering value funds, comparing multiple periods rather than focusing on a single annual return can provide a more balanced assessment. The available data also suggests that consistency and benchmark-relative performance can offer additional context when evaluating competing schemes.
Disclaimer: This content is for informational purposes only and should not be considered investment advice. Mutual fund investments are subject to market risks. Past performance and alpha do not guarantee future returns. Investors should assess their financial goals, risk tolerance and investment horizon before making investment decisions.
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