Mutual funds: If you are planning to invest in mutual funds, it is important to understand a fund’s investment strategy before investing. Comparing its long-term performance with peers in the same category can also help you make a more informed decision.
Here’s a look at the top-performing (direct plans) that have delivered more than 15% annualised returns over the past five years.
What are value mutual funds?
Value invest in stocks they consider undervalued relative to their intrinsic value. The idea is to buy quality companies at relatively attractive valuations and benefit as the market eventually recognises their true value.
Typically, these funds carry higher risk because choosing the wrong stock can have a substantial impact on the portfolio’s return.
There are around eight value mutual funds that have delivered an annualised return of over 15% in the past five years. Most of these high-performing delivered returns of 15-18% per annum.
| Value Mutual Fund | 5-year-returns (%) |
|---|---|
| Aditya Birla Sun Life Value Fund | 15.50 |
| HSBC Value Fund | 17.97 |
| HDFC Value Fund | 15.73 |
| ICICI Prudential Value Fund | 17.07 |
| JM Value Fund | 16.13 |
| Nippon Value Fund | 15.98 |
| Tata Value Fund | 15.51 |
| Templeton India Value Fund | 15.70 |
(Source: AMFI; 5-year returns as on 8 July 2026)
As shown in the table above, HSBC Value Fund delivered 17.97% per annum, ICICI Prudential Value Fund grew by 17.07%, and JM Value Fund delivered 16.13% annually over the past five years.
Other schemes that have delivered an annualised return of more than 15% over the past five years include and .
Should you invest?
Experts believe value funds can be a suitable option for investors with a long investment horizon.
“Over a long period, value stocks tend to outperform growth stocks. Therefore, it makes sense to invest in them. However, it is important to stay invested in these funds for a long period,” said Deepak Aggarwal, a Delhi-based chartered accountant and wealth adviser.
However, experts caution against relying exclusively on value investing.
According to Sridharan Sundaram, Sebi-registered investment adviser and Principal Officer & CEO of Wallet Wealth LLP, value and tend to outperform at different stages of the market cycle.
“Investing in value funds is a bottom-up approach, where you invest in undervalued companies and wait for the market to unlock their true value over time,” he said.
Sundaram recommends following a blended strategy rather than choosing only value funds.
“Ideally, investors should adopt a multi-cap approach because value and growth investing complement each other. Between 2020 and 2022, growth stocks outperformed, while value stocks have done better since 2022. Having both can help create a balanced portfolio,” he added.
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