These value mutual funds delivered over 25% annualised returns in the past five years

Stock markets have been swinging wildly in the past few days since US President Donald Trump kicked off a tariff war on April 2 after his ‘Liberation Day’ speech.

On Monday, the stock market benchmark indices, the Sensex and the Nifty 50,  dropped by 3 per cent with all stocks – barring HUL and Zomato – ending in the red. Stock prices recouped some of the losses today. However, the recent correction has left investors jittery and perplexed.

In this scenario, investors are recommended to invest in stocks that are available at attractive valuations. The same rule–when applied to mutual funds–makes value funds attractive to buy.

What are value funds?

For those who are not aware, value mutual funds refer to mutual fund schemes that identify stocks that are currently undervalued but are expected to perform well over time as the value is unlocked.

According to data as of February 28, 2025, there are 23 value mutual funds with total assets under management (AUM) of ₹1.71 lakh crore.

Since most wealth investors recommend that retail investors should stay invested for the long term, we list out the value funds which have delivered good returns in the past five years.

As you can see in the table below, there are three value mutual funds that have delivered over 30 per cent annualised returns.

These are Bandhan Sterling Fund, ICICI Value Discovery Fund and Templeton India Value Fund.

Other schemes which have delivered high returns are Aditya Birla Sun Life (ABSL) Pure Value Fund, HSBC Value Fund and JM Value Fund.

When we consider the AUMs, the largest value funds are ICICI Prudential Value Discovery Fund ( ₹46,688 crore), HSBC Value Fund ( ₹11,8993 crore) and Bandhan Sterling Fund ( ₹8,914 crore).

Meanwhile, it is important to note that past performance does not guarantee future returns. Just because a scheme has performed well in the past does not mean it will continue to perform at the same pace in the future.

Note: This story is for informational purposes only. Please speak to a SEBI-registered investment advisor before making any investment-related decision.