64% value mutual funds outperformed benchmarks under Modi 2.0 - Benchmark Beaters

64% value mutual funds outperformed benchmarks under Modi 2.0 – Benchmark Beaters

Last updated: 2024/06/08 at 5:36 PM

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Best small-cap JM Value Fundfunds to buy now ICICI Prudential Value Discovery Fund Nippon India Value Fund HDFC Capital Builder Value Fund What are value based mutual funds?2. Invest in Who should invest?

Jun 08, 2024, 01:32:34 PM IST

Around 64% value mutual funds have outperformed their respective benchmarks in Modi 2.0. In terms of numbers, of the 14 schemes available in the period, 9 outperformed their benchmarks, according to data by ACE MF. Here is the breakup.

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Best small-cap JM Value Fundfunds to buy now

The topper in the category offered an absolute return of 203.08% in the last five years of the Modi-led government. The scheme manages assets worth Rs 733 crore as of April.

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ICICI Prudential Value Discovery Fund

This largest value fund based on assets managed gave an absolute return of 186.40% in the last five years of the Modi government. Launched in 2004, the scheme manages assets worth Rs 42,664 crore.

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Nippon India Value Fund

The fund offered an absolute return of 182.50% in Mod’s second term as PM. The scheme manages assets worth Rs 7,651 crore as of April 2024.

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HDFC Capital Builder Value Fund

The oldest value fund delivered an absolute return of 126.89% in the last five years of the Modi government. The scheme was launched in February 1994 and manages assets worth Rs 6,823 crore.

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What are value based mutual funds?

These funds invest in undervalued stocks or stocks that are not favoured by the market. They then wait for the market to realise the full potential of these stocks. This makes the strategy risky. Sometimes the market may take a long time to reward such stocks. They tend to suffer in a bull market when everyone is chasing stocks unmindful of the valuations.

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2. Invest in Who should invest?

These funds are only recommended to mature or evolved investors who subscribe to value investing principles and have a long investment horizon. Mutual fund managers ask investors to invest only 20% of the total portfolio in value funds.

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