Top Value Mutual Funds in India That Delivered 244% Returns in 5 Years

Value mutual funds are designed for investors who want to create wealth by focusing on fundamentally strong companies trading below their intrinsic value. These funds adopt a value-investing strategy, which means buying quality stocks at attractive valuations and holding them for long-term appreciation. Such funds are suitable for investors who can withstand short-term volatility and aim for consistent long-term gains.

Key features of value mutual funds include:

• Investment in undervalued yet fundamentally sound companies
• Long-term investment horizon for capital appreciation
• Suitable for moderate-to-high risk investors

Strong 5-Year Performance

Over the past five years, value mutual funds in India have delivered exceptional returns, with top schemes generating between 218% and 244% absolute gains. For instance, an investment of ₹1 lakh in the best-performing schemes would have grown to more than ₹3.4 lakh today. Such impressive performance highlights the strength of value investing, especially during market phases where fundamentally strong companies outperform.

Bandhan Value Fund – The Top Performer

The Bandhan Value Fund has emerged as one of the best value funds with an absolute return of 243.6% over five years. Its objective is to invest in undervalued companies across market capitalisations. Despite recent short-term volatility (1-year return of -6%), it has delivered annualised 5-year returns of 28%.

• 1-Year Return: -6%
• 3-Year Return: 18%
• 5-Year Return: 28%
• 10-Year Return: 17%

Suitable for investors who can handle fluctuations, this fund has shown the power of patient value investing.

Templeton India Value Fund – Long-Term Consistency

Matching the Bandhan Value Fund, the Templeton India Value Fund has also delivered 243.6% returns in the last five years. The fund focuses on undervalued stocks with strong growth potential and targets long-term wealth creation. Despite short-term negative returns (-7% in 1 year), its long-term track record stands strong.

• 1-Year Return: -7%
• 3-Year Return: 19%
• 5-Year Return: 28%
• 10-Year Return: 16%

Investors with patience and a long-term outlook can benefit from this scheme’s disciplined value strategy.

HSBC Value Fund – A Diversified Pick

HSBC Value Fund delivered 230.4% in the last five years. Known for its diversified portfolio, this fund invests in companies trading below intrinsic value, aiming for steady long-term growth.

• 1-Year Return: -1%
• 3-Year Return: 24%
• 5-Year Return: 27%
• 10-Year Return: 18%

It is well-suited for investors who prefer diversification and stability while still benefiting from the principles of value investing.

JM Value Fund – Aggressive Approach

The JM Value Fund focuses on a mix of large, mid, and small-cap undervalued stocks. With a high 5-year return of 230.4%, it appeals to aggressive investors ready to tolerate volatility.

• 1-Year Return: -12%
• 3-Year Return: 25%
• 5-Year Return: 27%
• 10-Year Return: 18%

However, investors should be cautious of its high exposure to small and mid-cap stocks, which can be riskier in downturns.

ICICI Prudential Value Fund – Large-Cap Bias

This fund follows a disciplined value investing approach, focusing more on large-cap companies. With 5-year returns of 230.4%, it offers consistency for investors seeking relatively lower volatility.

• 1-Year Return: 1%
• 3-Year Return: 22%
• 5-Year Return: 27%
• 10-Year Return: 17%

It is ideal for investors preferring stability with long-term capital appreciation.

Nippon India Value Fund – Diversified Opportunity

The Nippon India Value Fund generated 217.6% returns in five years. It targets undervalued companies with strong fundamentals, though its exposure to mid and small-cap stocks adds some volatility.

• 1-Year Return: -3%
• 3-Year Return: 22%
• 5-Year Return: 26%
• 10-Year Return: 17%

Best for long-term investors who want diversification and can handle moderate-to-high risks.

Key Takeaways for Investors

• Bandhan and Templeton India Value Funds have been the top performers with more than 243% growth in 5 years.
• Value funds can underperform in short-term market rallies but reward patience in the long run.
• Investors should align their choices with personal risk appetite and financial goals.
• Consulting a financial advisor is recommended before committing to any scheme.