Top 3 Best Performing Value Funds of the Last Three Years

In the recent bull run, stocks, especially in the small-cap category, have provided significant returns. Investors find it hard to believe that an investor’s money could double in any mutual fund, and it may be the case that not many discuss it. Instead, investors tend to focus more on discussing stock returns, avoiding conversations about mutual funds since they are seen as long-term investments.

However, many mutual funds have delivered impressive returns, with the only condition being consistent investment. Mutual funds have the potential to build substantial wealth as they offer the benefit of compounding returns.

In this article, we will explore three Value Funds that have doubled investors’ money in the past three years. Let’s examine each one individually.

1. Bandhan Sterling Value Funds

   The Bandhan Sterling Value funds belong to the Bandhan Mutual Funds AMC and this fund is an open-ended fund, managed by Daylynn Pinto. The fund was launched on March 7, 2008.
   The fund has an expense ratio of 1.76% below the category average of 1.99%, The fund allows for flexible investment options, with a minimum SIP amount of Rs 100 and minimum initial and additional investment amounts of Rs 1000 each. Investors can participate in this fund at any time, leveraging its potential for growth and capital appreciation.
   In the past three years, the fund has generated an impressive absolute return of 108.97%. If an investor had invested Rs 1 lakh three years ago in this fund, it would have become Rs 2.09 lakh.

2. ICICI Prudential Value Discovery Funds

   The ICICI Prudential Value Discovery Fund belongs to ICICI Prudential AMC, and this fund is an open-ended fund, which means investors can invest at any time. The fund managers are Dharmesh Kakkad, Sharmila Dmello, and Sankaran Naren, and it was launched on August 16, 2004. The fund has an expense ratio of 1.58%, which is below the category average of 1.99%. The fund allows for flexible investment options, with a minimum SIP amount of Rs 100 and minimum initial and additional investment amounts of Rs 500.
   In the past three years, the fund has generated an impressive absolute return of 105.34% and an annualized return of around 26.93% during the same period. If an investor had invested Rs 1 lakh three years ago in this fund, it would have now become approximately Rs 2.05 lakh.

3. JM Value funds

   The JM Value fund is managed by Satish Ramanathan and Asit Bhandarkar and was launched on June 2, 1997. With an expense ratio of 2.4% as of February 29, 2024, which is higher than the category average of 1.99%. This open-ended fund allows flexible investment, with a minimum SIP amount of Rs 500 and a minimum one-time initial investment of Rs 5000. Investors can enter this fund at any time as it is an open-ended fund.
   In the past three years, the fund has generated an impressive absolute return of 102.18%. If an investor had invested Rs 1 lakh three years ago in this fund, it would have now become approximately Rs 2.02 lakh.

About Value Funds

Value Funds are a category of equity mutual funds rooted in the principles of “Value Investing.” This approach involves selecting stocks perceived to be trading at prices lower than their intrinsic or fundamental value. In essence, Value Funds seek out companies whose stock prices may not accurately reflect their true worth, to realise long-term growth potential as the market recognises their underlying value. The fund manager conducts thorough research and selects stocks they perceive to be undervalued. They expect that, over time, the broader market will recognise the true value of these stocks, leading to an increase in their prices.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.