Value funds invest in stocks that are deemed to be undervalued in prices based on fundamental characteristics. They are open-ended equity schemes that follow a value investment strategy. This kind of fund invests in the shares of companies that are traded at discounted rates, and the primary reason for investors to choose these stocks is that they could be undervalued due to temporary factors but can give high returns in the long run.
It is essential to note that value funds are often misunderstood to be contra funds. Contra funds aim at identifying stocks that are temporarily out of favour, whereas value funds concentrate on stocks trading below their intrinsic value. You can have a look at some of the best value funds in the table below.
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| Fund Name | Category | Risk | NAV | Expense Ratio | 1Y Returns | 3Y Returns | 5Y Returns | 7Y Returns | 10Y Returns | Rating | Fund Size (in Cr) | Exit Load |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
Motilal Oswal BSE Enhanced Value Index Fund | Equity | Very High | 28.66 | 0.79 | 18.0% | 32.8% | -- | -- | -- | 5 | ₹1,570 | Exit Load: 1%- If redeemed on or before 15 days from the date of allotment. See more |
SBI Contra Direct Plan-Growth | Equity | Very High | 405.99 | 0.73 | 0.7% | 17.7% | 20.7% | 19.4% | 16.7% | 5 | ₹43,753 | Exit load of 0.25% if redeemed within 30 days and 0.10% if redeemed after 30 days but on or before 90 days. See more |
Groww Value Fund | Equity | Very High | 31.61 | 1.32 | 4.1% | 17.5% | 15.1% | 14.0% | 12.2% | 2 | ₹59 | Exit load of 1% if redeemed within 1 year. |
ICICI Prudential Value Direct-Growth | Equity | Very High | 504.95 | 1.07 | 2.4% | 18.6% | 19.6% | 18.3% | 15.7% | 5 | ₹55,851 | Exit load of 1% if redeemed within 12 months |
HSBC Value Fund | Equity | Very High | 126.75 | 0.74 | 10.0% | 23.8% | 21.3% | 18.9% | 17.5% | 4 | ₹13,371 | Exit load for units in excess of 10% of the investment,1% will be charged for redemption within 1 year. See more |
UTI Nifty 500 Value 50 Index Fund | Equity | Very High | 22.89 | 0.69 | 21.6% | -- | -- | -- | -- | -- | ₹614 | - |
ICICI Prudential Nifty200 Value 30 Index Fund | Equity | Very High | 11.51 | 0.64 | 23.5% | -- | -- | -- | -- | -- | ₹183 | - |
DSP Value Fund | Equity | Very High | 24.05 | 2.13 | 15.3% | 20.4% | 16.2% | -- | -- | 5 | ₹1,469 | Exit load of 1% if redeemed within 12 months |
Nippon India Nifty 50 Value 20 Index Fund | Equity | Very High | 18.26 | 0.25 | -1.4% | 12.0% | 12.8% | -- | -- | 1 | ₹912 | - |
Axis Nifty500 Value 50 Index Fund | Equity | Very High | 11.76 | 0.28 | 22.1% | -- | -- | -- | -- | -- | ₹156 | Exit load of 0.25%, if redeemed within 15 days. |
Invesco India Contra Fund | Equity | Very High | 150.04 | 0.9 | -0.9% | 19.4% | 17.0% | 16.3% | 16.7% | 3 | ₹17,663 | Exit load for units in excess of 10% of the investment, 1% will be charged for redemption within 1 year. See more |
Bandhan Nifty 500 Value 50 Index Fund | Equity | Very High | 11.65 | 0.42 | 21.8% | -- | -- | -- | -- | -- | ₹27 | Exit load of 0.25%, if redeemed within 15 days. |
Nippon India Value Fund | Equity | Very High | 244.59 | 1.37 | 3.1% | 22.2% | 19.4% | 17.8% | 16.7% | 4 | ₹7,992 | For units more than 10% of the investments, an exit load of 1% if redeemed within 12 months. See more |
Kotak Contra Fund | Equity | Very High | 176.73 | 0.93 | 6.1% | 20.8% | 18.5% | 17.4% | 17.7% | 4 | ₹4,679 | Exit load of 1% if redeemed within 90 days. |
Quant Value Fund | Equity | Very High | 22.45 | 0.54 | 14.4% | 25.4% | -- | -- | -- | 2 | ₹1,468 | Exit load of 1%, if redeemed within 15 days. |
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Value funds are likely to be suitable for-
Fund managers pick these stocks to see them grow over time and in the future, which means you will have to stay invested in the funds for the long term to witness the true growth potential. Therefore, investors with a longer investment horizon can prefer investing in them.
Value funds can provide solid returns in any market cycle for investors who have high exposure to growth stocks.
These funds’ performance may or may not improve in the future. Investors who are open to both the outcomes and have risk-bearing ability can start investing in value funds.
If you are investing lumpsum in mutual funds and looking forward to estimating your returns, simply use lumpsum calculator. It is a convenient tool that can assist you in generating your prospective returns.
There are certain factors to be considered before making investments in the top value mutual funds, and they are:
Here are some benefits of investing in the best value mutual funds:
Portfolio diversification: Value funds invest in undervalued stocks across different sectors. It helps in diversifying a portfolio with limited exposure to options with a significant risk-reward ratio.
Lower downside risk: The downside risk and the level of volatility in the case of value mutual funds is lower when compared with other types of equity funds. Since these stocks are already undervalued, they are less impacted in a bearish market.
High-growth potential: Value funds have the potential to multiply investors’ wealth significantly and maximise portfolio value over the long term.
Investment route: Investors can allocate their savings to mutual funds via two modes, namely lump sum and systematic investment plan (SIP). The first route allows individuals to invest the entire amount in one go. By opting for the SIP mode, they can invest in a value fund via fixed instalments at regular intervals (monthly, quarterly, yearly, etc.). While individuals need to invest at least Rs.1,000 if they opt for the lump sum route, they can start a SIP with Rs.100. Note that this minimum amount may vary from one scheme to another.
The risks to consider while selecting the best value mutual funds for 2025 are-
Value funds are equity mutual funds adopting a value investing strategy. The fund manager will invest in undervalued stocks that tend to trade below the intrinsic value.
They do carry a certain amount of risks, but these funds are known to outperform growth funds when strategised right.
Value funds are appropriate for long-term investors hoping to diversify their holdings. Investors with a lengthy investment horizon may be interested in them since they invest in underperforming assets but are expected to outperform in the long run.
The major benefits of these funds are that they help to diversify the investor's portfolio and, over time, provide good returns.
Value funds come with several risks, such as underperformance and inaccurate analysis of the fund manager, which can, in turn, result in downturns in your investment.
Disclaimer: Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.
Now let us jump and check about these top 15 mutual fund schemes.
Fund Performance: The Motilal Oswal BSE Enhanced Value Index Fund comes under the Equity category of Motilal Oswal Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in Motilal Oswal BSE Enhanced Value Index Fund via lump sum is ₹500 and via SIP is ₹500.
| Min Investment Amt | ₹500 |
|---|---|
| AUM | ₹1,570Cr |
| 1Y Returns | 18.0% |
Fund Performance: The SBI Contra Direct Plan-Growth has given 17.67% annualized returns in the past three years and 20.71% in the last 5 years. The SBI Contra Direct Plan-Growth comes under the Equity category of SBI Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in SBI Contra Direct Plan-Growth via lump sum is ₹5,000 and via SIP is ₹500.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹43,753Cr |
| 1Y Returns | 0.7% |
Fund Performance: The Groww Value Fund has given 17.52% annualized returns in the past three years and 15.13% in the last 5 years. The Groww Value Fund comes under the Equity category of Groww Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in Groww Value Fund via lump sum is ₹500 and via SIP is ₹500.
| Min Investment Amt | ₹500 |
|---|---|
| AUM | ₹59Cr |
| 1Y Returns | 4.1% |
Fund Performance: The ICICI Prudential Value Direct-Growth has given 18.65% annualized returns in the past three years and 19.57% in the last 5 years. The ICICI Prudential Value Direct-Growth comes under the Equity category of ICICI Prudential Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in ICICI Prudential Value Direct-Growth via lump sum is ₹1,000 and via SIP is ₹100.
| Min Investment Amt | ₹1,000 |
|---|---|
| AUM | ₹55,851Cr |
| 1Y Returns | 2.4% |
Fund Performance: The HSBC Value Fund has given 23.78% annualized returns in the past three years and 21.33% in the last 5 years. The HSBC Value Fund comes under the Equity category of HSBC Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in HSBC Value Fund via lump sum is ₹5,000 and via SIP is ₹500.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹13,371Cr |
| 1Y Returns | 10.0% |
Fund Performance: The UTI Nifty 500 Value 50 Index Fund comes under the Equity category of UTI Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in UTI Nifty 500 Value 50 Index Fund via lump sum is ₹1,000 and via SIP is ₹500.
| Min Investment Amt | ₹1,000 |
|---|---|
| AUM | ₹614Cr |
| 1Y Returns | 21.6% |
Fund Performance: The ICICI Prudential Nifty200 Value 30 Index Fund comes under the Equity category of ICICI Prudential Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in ICICI Prudential Nifty200 Value 30 Index Fund via lump sum is ₹100 and via SIP is ₹100.
| Min Investment Amt | ₹100 |
|---|---|
| AUM | ₹183Cr |
| 1Y Returns | 23.5% |
Fund Performance: The DSP Value Fund has given 20.42% annualized returns in the past three years and 16.2% in the last 5 years. The DSP Value Fund comes under the Equity category of DSP Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in DSP Value Fund via lump sum is ₹100 and via SIP is ₹100.
| Min Investment Amt | ₹100 |
|---|---|
| AUM | ₹1,469Cr |
| 1Y Returns | 15.3% |
Fund Performance: The Nippon India Nifty 50 Value 20 Index Fund has given 12.01% annualized returns in the past three years and 12.76% in the last 5 years. The Nippon India Nifty 50 Value 20 Index Fund comes under the Equity category of Nippon India Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in Nippon India Nifty 50 Value 20 Index Fund via lump sum is ₹5,000 and via SIP is ₹100.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹912Cr |
| 1Y Returns | -1.4% |
Fund Performance: The Axis Nifty500 Value 50 Index Fund comes under the Equity category of Axis Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in Axis Nifty500 Value 50 Index Fund via lump sum is ₹100 and via SIP is ₹100.
| Min Investment Amt | ₹100 |
|---|---|
| AUM | ₹156Cr |
| 1Y Returns | 22.1% |
Fund Performance: The Invesco India Contra Fund has given 19.43% annualized returns in the past three years and 16.96% in the last 5 years. The Invesco India Contra Fund comes under the Equity category of Invesco Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in Invesco India Contra Fund via lump sum is ₹1,000 and via SIP is ₹100.
| Min Investment Amt | ₹1,000 |
|---|---|
| AUM | ₹17,663Cr |
| 1Y Returns | -0.9% |
Fund Performance: The Bandhan Nifty 500 Value 50 Index Fund comes under the Equity category of Bandhan Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in Bandhan Nifty 500 Value 50 Index Fund via lump sum is ₹1,000 and via SIP is ₹100.
| Min Investment Amt | ₹1,000 |
|---|---|
| AUM | ₹27Cr |
| 1Y Returns | 21.8% |
Fund Performance: The Nippon India Value Fund has given 22.23% annualized returns in the past three years and 19.43% in the last 5 years. The Nippon India Value Fund comes under the Equity category of Nippon India Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in Nippon India Value Fund via lump sum is ₹500 and via SIP is ₹100.
| Min Investment Amt | ₹500 |
|---|---|
| AUM | ₹7,992Cr |
| 1Y Returns | 3.1% |
Fund Performance: The Kotak Contra Fund has given 20.83% annualized returns in the past three years and 18.52% in the last 5 years. The Kotak Contra Fund comes under the Equity category of Kotak Mahindra Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in Kotak Contra Fund via lump sum is ₹100 and via SIP is ₹100.
| Min Investment Amt | ₹100 |
|---|---|
| AUM | ₹4,679Cr |
| 1Y Returns | 6.1% |
Fund Performance: The Quant Value Fund comes under the Equity category of Quant Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in Quant Value Fund via lump sum is ₹5,000 and via SIP is ₹1,000.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹1,468Cr |
| 1Y Returns | 14.4% |
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