Best Value Mutual Funds

A value fund is a fund that follows a value investing strategy and seeks to invest in stocks that are deemed to be undervalued. The focus is on identifying stocks that are currently priced at a discount, or at a price that is not reflective of their true worth. By buying a stock at a high margin of safety, the risk is mitigated to some extent. Value investing is often compared with growth investing, which focuses on emerging companies with high growth prospects.

Top 10 Value Mutual Funds

Fund NameCategoryRisk1Y ReturnsRatingFund Size(in Cr)
Aditya Birla Sun Life Pure Value FundEquityModerately High-17.1%5star1,456
Tata Equity P/E FundEquityModerately High-3.6%5star4,746
HDFC Capital Builder Value FundEquityModerately High-0.7%4star2,310
IDFC Sterling Value FundEquityModerately High-7.1%4star2,804
L&T India Value FundEquityModerately High-6.2%4star7,639
Quantum Long Term Equity Value FundEquityModerately High1.8%3star876
Reliance Value FundEquityModerately High-4.0%3star3,000
Templeton India Value FundEquityModerately High-9.1%3star520
JM Value FundEquityHigh-8.3%3star125
UTI Value Opportunities FundEquityModerately High0.9%2star4,228
ICICI Prudential Value Discovery FundEquityModerately High1.6%2star16,130
Indiabulls Value Discovery FundEquityModerately High-8.5%1star44
View All Top 10 Value Mutual Funds

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Now let us jump and check about these top 10 mutual fund schemes.

Aditya Birla Sun Life Pure Value Fund - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Value segment and provided 11.94% annualized returns in the last 3 years. In the last 1 year, it gave -17.14% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided -17.14% returns in the last 1 year. Groww rated this fund as 5 Star. This is one of the best Equity mutual fund in India.

Fund Manager: Mahesh Patil, Milind Bafna

Launch Date31 Dec 2012
Min Investment Amt1,000
Groww Rating5star
AUM1,456Cr
1Y Returns-17.1%

Tata Equity P/E Fund - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Value segment and provided 16% annualized returns in the last 3 years. In the last 1 year, it gave -3.56% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided -3.56% returns in the last 1 year. Groww rated this fund as 5 Star. This is one of the best Equity mutual fund in India.

Fund Manager: Sonam Udasi

Launch Date31 Dec 2012
Min Investment Amt5,000
Groww Rating5star
AUM4,746Cr
1Y Returns-3.6%

HDFC Capital Builder Value Fund - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Value segment and provided 13.55% annualized returns in the last 3 years. In the last 1 year, it gave -0.67% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided -0.67% returns in the last 1 year. Groww rated this fund as 4 Star. This is one of the best Equity mutual fund in India.

Fund Manager: Miten Lathia

Launch Date31 Dec 2012
Min Investment Amt5,000
Groww Rating4star
AUM2,310Cr
1Y Returns-0.7%

IDFC Sterling Value Fund - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Value segment and provided 14.37% annualized returns in the last 3 years. In the last 1 year, it gave -7.13% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided -7.13% returns in the last 1 year. Groww rated this fund as 4 Star. This is one of the best Equity mutual fund in India.

Fund Manager: Anoop Bhaskar, Daylynn Pinto

Launch Date31 Dec 2012
Min Investment Amt5,000
Groww Rating4star
AUM2,804Cr
1Y Returns-7.1%

L&T India Value Fund - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Value segment and provided 12.65% annualized returns in the last 3 years. In the last 1 year, it gave -6.21% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided -6.21% returns in the last 1 year. Groww rated this fund as 4 Star. This is one of the best Equity mutual fund in India.

Fund Manager: Venugopal Manghat, Karan Desai

Launch Date31 Dec 2012
Min Investment Amt5,000
Groww Rating4star
AUM7,639Cr
1Y Returns-6.2%

Quantum Long Term Equity Value Fund - Growth

Fund Performance: This fund has consistently beaten its benchmark in Value segment and provided 12.69% annualized returns in the last 3 years. In the last 1 year, it gave 1.75% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 1.75% returns in the last 1 year. Groww rated this fund as 3 Star. This is one of the best Equity mutual fund in India.

Fund Manager: Nilesh Shetty, Atul Kumar

Launch Date12 Mar 2006
Min Investment Amt500
Groww Rating3star
AUM876Cr
1Y Returns1.8%

Reliance Value Fund - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Value segment and provided 10.36% annualized returns in the last 3 years. In the last 1 year, it gave -4.04% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided -4.04% returns in the last 1 year. Groww rated this fund as 3 Star. This is one of the best Equity mutual fund in India.

Fund Manager: Samir Rachh

Launch Date31 Dec 2012
Min Investment Amt500
Groww Rating3star
AUM3,000Cr
1Y Returns-4.0%

Templeton India Value Fund - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Value segment and provided 9.88% annualized returns in the last 3 years. In the last 1 year, it gave -9.09% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided -9.09% returns in the last 1 year. Groww rated this fund as 3 Star. This is one of the best Equity mutual fund in India.

Fund Manager: Vikas Chiranwal

Launch Date31 Dec 2012
Min Investment Amt5,000
Groww Rating3star
AUM520Cr
1Y Returns-9.1%

JM Value Fund - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Value segment and provided 14.65% annualized returns in the last 3 years. In the last 1 year, it gave -8.26% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided -8.26% returns in the last 1 year. Groww rated this fund as 3 Star. This is one of the best Equity mutual fund in India.

Fund Manager: Asit Bhandarkar

Launch Date31 Dec 2012
Min Investment Amt5,000
Groww Rating3star
AUM125Cr
1Y Returns-8.3%

UTI Value Opportunities Fund - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Value segment and provided 9.11% annualized returns in the last 3 years. In the last 1 year, it gave 0.89% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 0.89% returns in the last 1 year. Groww rated this fund as 2 Star. This is one of the best Equity mutual fund in India.

Fund Manager: Vetri Subramaniam, Amit Premchandani

Launch Date31 Dec 2012
Min Investment Amt5,000
Groww Rating2star
AUM4,228Cr
1Y Returns0.9%

ICICI Prudential Value Discovery Fund - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Value segment and provided 9.17% annualized returns in the last 3 years. In the last 1 year, it gave 1.61% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 1.61% returns in the last 1 year. Groww rated this fund as 2 Star. This is one of the best Equity mutual fund in India.

Fund Manager: Mrinal Singh

Launch Date31 Dec 2012
Min Investment Amt1,000
Groww Rating2star
AUM16,130Cr
1Y Returns1.6%

Indiabulls Value Discovery Fund - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Value segment and provided 8.27% annualized returns in the last 3 years. In the last 1 year, it gave -8.46% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided -8.46% returns in the last 1 year. Groww rated this fund as 1 Star. This is one of the best Equity mutual fund in India.

Fund Manager: Sumit Bhatnagar

Launch Date7 Sep 2015
Min Investment Amt500
Groww Rating1star
AUM44Cr
1Y Returns-8.5%

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Investment style of value funds

Both growth and value are two fundamental approaches to stock investing that fund managers follow. Growth investing entails looking for companies that have a potential to grow faster than others. The optimism is reflected in the premium valuation commanded by the market price of such companies. A value investor, on the other hand, buys undervalued stocks that have a potential for appreciation, but are usually ignored by the investing community. The premise of value investing is that the market has some inherent inefficiencies, causing specific companies to trade at levels below what they are actually worth for. Value fund managers are skilled in identifying these market inefficiencies. In theory, once the market corrects these inefficiencies, the value investor will gain from an increase in the share price. Often, value stocks are associated with dividend payments since they are usually well-established companies with committed dividend distribution programs. There are only a handful of equity funds in the market which uses the value investment strategy. Hence, the best way to invest in this category of mutual funds is to have a long-term investment horizon of at least 5 years.

Challenges of value investing

The biggest challenge of value investing is estimating the fair value. Estimating the fair value of an underpriced stock is both an art and science. To determine fair value, fund managers estimate future cash flows of the company, which is usually a difficult task for undervalued companies, because their past performance will not give you the true picture and the fund managers need to make a judgement about future growth. Though value investing can potentially give superior long-term returns, it is more difficult than growth investing. Only very experienced fund managers, with a long track record of out-performance, are likely to be successful value investors. So, it is upto you to decide now, do you choose growth or do you choose value?

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Mutual fund investments are subject to market risks. Please read the scheme information and other related documents carefully before investing.
Past performance is not indicative of future returns. Please consider your specific investment requirements, risk tolerance, investment goal, time frame, risk and reward balance and the cost associated with the investment before choosing a fund, or designing a portfolio that suits your needs.
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