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Only Four Value Mutual Funds Delivered Double-Digit Returns in One Year
Value mutual funds in India had a tough year, with only four out of 23 funds making more than 10% profit.
The best performer was Quant Value Fund with a 16.23% return, while JM Value Fund lost 5.74%.
Experts say this isn't because value investing is bad, but because different funds picked different stocks and sectors.
Some funds did well by choosing the right stocks, while others struggled because they invested in sectors like IT and FMCG that didn't do well.
Value investing usually does best when the market is growing, but lately, global problems have made it harder for these funds to perform well.
Experts advise investors to stay invested for at least five to seven years to see the benefits of value investing.
Only four out of 23 value mutual funds delivered double-digit returns in the past year.
Quant Value Fund was the top performer with a 16.23% return.
JM Value Fund was the worst performer with a -5.74% return.
Experts attribute the performance divergence to stock selection and portfolio construction.
Value investing typically performs best during market recoveries and economic upcycles.
- Who
- Value mutual fund managers and investors
- What
- Only four value mutual funds delivered double-digit returns in one year
- Where
- India
- When
- Over the past year (as of 20th July 2026)
- Why
- Due to stock selection, portfolio construction, and sector allocation by fund managers
Value Investing Style
Fund-Specific Factors
Performance of Value Funds
Value Investing Style
The value investing style has been the best-performing investment style over the past one, three, and five years.
Fund-Specific Factors
The recent divergence in returns is due to how individual fund managers selected stocks and built portfolios.
Sector Allocation Impact
Value Investing Style
Value investing is inherently cyclical and tends to perform best during market recoveries and economic upcycles.
Fund-Specific Factors
Some underperforming value funds had larger exposure to sectors like IT and FMCG, which faced earnings growth concerns and price pressure.
Key facts
- Top Performing Fund
- Quant Value Fund (16.23%)
- Worst Performing Fund
- JM Value Fund (-5.74%)
- Largest Fund in Category
- ICICI Prudential Value Fund (₹60,000 crore AUM)
- Value Fund Performance in 2021
- Average return of about 35%
- Performance Persistence
- Only 26% of top quartile funds remain in top quartile over the next three years
Quotes
Jiral Mehta
Senior Manager-Research at FundsIndia
“"Our research shows that the value style has actually been the best-performing investment style over the past one, three and five years among all the styles we track, ahead of quality, momentum, low volatility and even the broader Nifty 500,"”
livemint.com
Sources
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