Top 10 Value Mutual Funds

Fund NameCategoryRisk1Y ReturnsRatingFund Size(in Cr)
Tata Equity P/E FundEquityModerately High-7.5%4star5,208
L&T India Value FundEquityModerately High-8.4%4star7,633
HDFC Capital Builder Value FundEquityModerately High-9.7%3star4,257
Reliance Value FundEquityModerately High-5.0%3star2,902
IDFC Sterling Value FundEquityModerately High-15.2%3star2,890
ICICI Prudential Value Discovery FundEquityModerately High-9.5%3star14,959
JM Value FundEquityHigh-6.5%3star114
Indiabulls Value Discovery FundEquityModerately High-14.3%2star23
UTI Value Opportunities FundEquityModerately High-5.5%2star4,181
Templeton India Value FundEquityModerately High-12.3%2star479
Aditya Birla Sun Life Pure Value FundEquityModerately High-19.3%2star3,987
View All Top 10 Value Mutual Funds

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.

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

Tata Equity PE Fund Direct Growth

Fund Performance: This fund has consistently beaten its benchmark in Value segment and provided 9.16% annualized returns in the last 3 years. In the last 1 year, it gave -7.45% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided -7.45% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹5,000. Minimum SIP investment amount for this scheme is ₹500. This is one of the best Equity mutual fund in India.

Launch Date31 Dec 2012
Min Investment Amt5,000
AUM5,208Cr
1Y Returns-7.5%

L&T India Value Fund Direct Growth

Fund Performance: This fund has consistently beaten its benchmark in Value segment and provided 7.24% annualized returns in the last 3 years. In the last 1 year, it gave -8.41% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided -8.41% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹5,000. Minimum SIP investment amount for this scheme is ₹500. This is one of the best Equity mutual fund in India.

Launch Date31 Dec 2012
Min Investment Amt5,000
AUM7,633Cr
1Y Returns-8.4%

HDFC Capital Builder Value Fund Direct Plan Growth

Fund Performance: This fund has consistently beaten its benchmark in Value segment and provided 8.02% annualized returns in the last 3 years. In the last 1 year, it gave -9.73% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided -9.73% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹5,000. Minimum SIP investment amount for this scheme is ₹500. This is one of the best Equity mutual fund in India.

Launch Date31 Dec 2012
Min Investment Amt5,000
AUM4,257Cr
1Y Returns-9.7%

Reliance Value Fund Direct Growth

Fund Performance: This fund has consistently beaten its benchmark in Value segment and provided 6.84% annualized returns in the last 3 years. In the last 1 year, it gave -4.96% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided -4.96% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹500. Minimum SIP investment amount for this scheme is ₹100. This is one of the best Equity mutual fund in India.

Launch Date31 Dec 2012
Min Investment Amt500
AUM2,902Cr
1Y Returns-5.0%

IDFC Sterling Value Fund Direct Plan Growth

Fund Performance: This fund has consistently beaten its benchmark in Value segment and provided 6.6% annualized returns in the last 3 years. In the last 1 year, it gave -15.2% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided -15.2% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹5,000. Minimum SIP investment amount for this scheme is ₹1,000. This is one of the best Equity mutual fund in India.

Launch Date31 Dec 2012
Min Investment Amt5,000
AUM2,890Cr
1Y Returns-15.2%

ICICI Prudential Value Discovery Direct Growth

Fund Performance: This fund has consistently beaten its benchmark in Value segment and provided 4.26% annualized returns in the last 3 years. In the last 1 year, it gave -9.48% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided -9.48% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹1,000. Minimum SIP investment amount for this scheme is ₹100. This is one of the best Equity mutual fund in India.

Launch Date31 Dec 2012
Min Investment Amt1,000
AUM14,959Cr
1Y Returns-9.5%

JM Value Fund Direct Plan Growth

Fund Performance: This fund has consistently beaten its benchmark in Value segment and provided 7% annualized returns in the last 3 years. In the last 1 year, it gave -6.46% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided -6.46% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹5,000. Minimum SIP investment amount for this scheme is ₹500. This is one of the best Equity mutual fund in India.

Launch Date31 Dec 2012
Min Investment Amt5,000
AUM114Cr
1Y Returns-6.5%

Indiabulls Value Fund Direct Growth

Fund Performance: This fund has consistently beaten its benchmark in Value segment and provided 1.24% annualized returns in the last 3 years. In the last 1 year, it gave -14.26% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided -14.26% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹500. Minimum SIP investment amount for this scheme is ₹500. This is one of the best Equity mutual fund in India.

Launch Date07 Sep 2015
Min Investment Amt500
AUM23Cr
1Y Returns-14.3%

UTI Value Opportunities Fund Direct Growth

Fund Performance: This fund has consistently beaten its benchmark in Value segment and provided 5.96% annualized returns in the last 3 years. In the last 1 year, it gave -5.53% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided -5.53% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹5,000. Minimum SIP investment amount for this scheme is ₹500. This is one of the best Equity mutual fund in India.

Launch Date31 Dec 2012
Min Investment Amt5,000
AUM4,181Cr
1Y Returns-5.5%

Templeton India Value Fund Direct Plan Growth

Fund Performance: This fund has consistently beaten its benchmark in Value segment and provided 3.82% annualized returns in the last 3 years. In the last 1 year, it gave -12.31% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided -12.31% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹5,000. Minimum SIP investment amount for this scheme is ₹500. This is one of the best Equity mutual fund in India.

Launch Date31 Dec 2012
Min Investment Amt5,000
AUM479Cr
1Y Returns-12.3%

Aditya Birla Sun Life Pure Value Direct Fund Growth

Fund Performance: This fund has consistently beaten its benchmark in Value segment and provided 0.86% annualized returns in the last 3 years. In the last 1 year, it gave -19.31% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided -19.31% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹1,000. Minimum SIP investment amount for this scheme is ₹1,000. This is one of the best Equity mutual fund in India.

Launch Date31 Dec 2012
Min Investment Amt1,000
AUM3,987Cr
1Y Returns-19.3%

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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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