If you are looking to invest in a mutual fund, it is vital to examine the scheme’s past returns and compare them with schemes in the same category. Although past returns do not guarantee future returns, they definitely give an indication of the scheme’s future prospects.
Here, we list eight value mutual funds which have delivered over 25 per cent annual returns in the past five years.
Value mutual funds refer to schemes which follow a value investment strategy, with at least 65 per cent in stocks. Equity funds may be categorised based on the valuation parameters adopted in stock selection. One is growth funds, which identify momentum stocks that are expected to perform better than the market.
The other category is value funds, which identify stocks that are currently undervalued but are expected to perform well over time as the value is unlocked. Overall, as of March 31, 2025, there were 24 value/contra schemes with a total asset size of ₹1.83 crore.
As we can see in the table above, eight mutual funds have delivered over 25 per cent annual returns in the past five years. Bandhan Sterling Value Fund has delivered 32.79 per cent in the past five years, Templeton India Value Fund has delivered 30.41 per cent while other schemes which have given over 25 per cent returns are JM Value Fund and Nippon India Value Fund.
Past performance and future returns
Meanwhile, it is noteworthy that past returns do not guarantee future returns. In other words, just because a scheme has given good returns in the past, it does not necessarily mean that it will continue to give good performance in the future as well.
Therefore, investors should examine other factors besides historical returns, such as the performance of the fund manager, the category of the scheme, and overall economic factors.
Note: This story is for informational purposes only. Please speak to a SEBI-registered investment advisor before making any investment-related decision.
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