Home / Mutual Funds / News /  IPRU MF Value Discovery Fund turns Rs10 lakh into Rs2.5 crore in 18 years
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ICICI Prudential Value Discovery Fund, which recently completed 18 years, has turned a lump sum investment of 10 lakh at the time of inception into 2.5 crore, showing a compounded annual growth rate (CAGR) of 19.7%. 

A similar investment in the Nifty 50 index would have yielded a CAGR of 15.6% at 1.3 crore. 

ICICI Prudential Value Discovery Fund, which was launched on 16 August 2004, invests in a diversified portfolio of stocks that have attractive valuations but are quoting at a discount to their intrinsic value. 

The scheme has assets under management (AUM) of 24,694 crore, which accounts for nearly 30% of the total AUM in the value category. According to ICICI Prudential mutual Fund, this indicates significant investor trust of value investors in the scheme. 

In terms of systematic investment plan (SIP) performance, a monthly investment of 10,000 via SIP since the inception, which would amount to a total investment of 21.6 lakh, would have grown to 1.2 crore as of 31 July 2022, a CAGR of 17.3%. 

Nimesh Shah, managing director & chief executive officer of ICICI Prudential AMC, said, “One of the good things we have noticed over the years is that value investing has been gaining traction among Indian investors. Investors are increasingly becoming aware of what constitutes value and why it is important and needs to be followed diligently. Overseas, value investing is an established and well-explored concept. With Indians having a natural disposition to see value in everything one purchases, we believe value investing will become more and more entrenched in our lives sooner than later."

Fund managers of the scheme are Dharmesh Kakkad and S Naren. 

“Value as a strategy may not work in all phases of a market cycle. What investors need to remember is that value investing will deliver over the long term for a patient investor. Global experience and the journey of ICICI Prudential Value Discovery Fund has taught us first hand that the approach tends to deliver sizeable returns in the long run. Furthermore, value investing at a time when market is elevated tends to do well as value focuses on investing in sectors which are out of favour but offer long term potential," said S Naren, ED & CIO, ICICI Prudential AMC.

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