Kolkata: Value funds take risky bets but they also can reward handsomely. Essentially value funds are for long-term investors. The reason is essentially embedded in the way a value fund operates. Value funds typically invest in stocks of companies that the fund managers believes are undervalued. In other words, the market price of a value stock is lower than its intrinsic value and the fund manager waits for the time when the stocks will realise their intrinsic value.
Therefore, these stocks take time to reflct their true potential. Fund managers first identify undervalued stocks through a thorough study of their financial statements and conducting valuation metrics as compared to peer stocks and industry potential. Value funds hold these stocks for the long term, expectring the market will recognise the true worth of these stocks. What follows below are three value funds in India which have generated 30%+ annual returns for the past five years.
Templeton India Value Fund
This fund has 92.16% investment in domestic equities of which 58.88% is in large cap stocks, 5.14% is in mid cap stocks and 6.15% in small cap stocks. Its NAV is Rs 700.1116 as on June 3, 2025 and has a fund size of Rs 2195.23 crore. Its expense ratio is 2.05%. As on June 3, its annualised returns in the past five years has been 29.96% in the lump sum mode and 21.46% in the SIP mode.
HSBC Value Fund
The fund has 99.2% investment in domestic equities of which 36.85% is in Large Cap stocks, 16.32% is in Mid Cap stocks, 28.81% in Small Cap stocks. Its NAV is Rs 107.809 as on June 3, 2025 and has a fund size of Rs 13095.25 crore. Its expense ratio is 1.72%. As on June 3, its annualised returns in the past five years has been 29.72% in the lump sum mode and 23.79% in the SIP mode.
Nippon India Value Fund
The fund has 96.37% investment in domestic equities of which 48.86% is in large cap stocks, 15.16% is in mid cap stocks, 6.59% in small cap stocks. Its NAV is Rs 220.2974 as on June 3, 2025 and has a fund size of Rs 8382.57 crore. Its expense ratio is 1.83%. As on June 3, its annualised returns in the past five years has been 29.08% in the lump sum mode and 22.75% in the SIP mode.
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For long-term investors in mutual funds, value funds have a special place since the managers of such funds place bets on stocks that are undervalued with the expectation that they will spperciate fast in value in the future. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
