Diwali 2024: These 10 value mutual funds gave over 40% returns since last festive season. Do you own any?

Before investing in a mutual fund scheme, investors tend to examine its returns compared to schemes in the same category. Although wealth advisors often point out that historical returns do not guarantee future returns, it is common among retail investors to give considerable emphasis to the scheme's past returns in order to evaluate its future potential.

Here, we list out the returns delivered by value mutual funds in the past one year. For those who are not aware, value mutual funds refer to mutual fund schemes which follow a value investment strategy with at least 65 per cent in stocks.

What are value mutual funds?

Value mutual funds identify stocks that are currently undervalued but are expected to perform well over time as the value is unlocked. There are 23 value schemes in the entire mutual fund universe with total assets under management (AUM) of ₹1.95 lakh crore. These schemes received an inflow of ₹1,964 crore in September 2024.

(Source: AMFI; Returns as on Oct 29, 2024)

As one can see in the table above, 10 value mutual fund schemes delivered over 40 per cent return in the past one year, with Quant Value Fund posting 60.21 per cent return and Nippon India Value Fund giving 49.36 per cent return. In terms of the size of mutual fund scheme, the largest scheme is ICICI Prudential Value Discovery Fund (with AUM of ₹49,464 crore) followed by HSBC Value Fund (AUM ₹13,532 crore).

It is worth noting that a scheme's past returns do not guarantee its future returns. In other words, just because a value mutual fund delivered over 40 per cent return in the past year doesn't indicate that it will continue to give the same performance 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.