BackValue-oriented mutual funds make a comeback
ICICI Prudential Value Discovery Fund has grown by 23% in the last one year, followed by UTI Value Opportunities which has given 19% in the same time period.
PremiumAfter a long dud, value-oriented mutual fund schemes have started performing again. The value-oriented category of mutual funds has given around 14% returns in the last one year, around 17% returns in the last three months. Though the long term returns are still lagging behind. "Albeit by a small margin, the value funds managed to beat NSE 500 Total Return Index (TRI) on 1-month return, which improved the 3-month return as well," says Juzer Gabajiwala, Director, Ventura Securities.
Some value funds such as IDFC Sterling Value Fund benefited from the rally in mid and small caps, offering deep value. A few others also outpaced the broader markets. HDFC Equity Fund which has been banking on PSUs, mining, capital goods companies and utility companies did well as value stocks fired, explains Gabajiwala.
ICICI Prudential Value Discovery Fund is topping the one-year return chart. The fund has grown by 23% in the last one year, followed by UTI Value Opportunities which has given 19% in the same time period.
Other scheme which gave over 15% returns in the last one yer include, Union Value Discovery Fund grew by 17% in the last one year, IDFC Sterling Value Fund (17%), Indiabulls Value (16.50%), Nippon India Value (16.26%) and ABSL Pure Value Fund (16.20%).
All the value oriented funds, in the last one year have given double digit returns in the range of 32% and 52%.
What should investors invested in value-oriented funds do? "For many investors, the impulsive reaction would be to rush to redeem value funds just to get them off the radar—they have indeed tested the patience of investors. But what’s convenient need not be intelligent always. Instead of impulsively redeeming value-oriented funds,you should instead revisit your entire mutual fund portfolio at a time when markets are at an all-time high," says Gabajiwala.
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