Value Funds Hit 22% CAGR: Is Your SIP Missing Out?
Value mutual funds — which buy underpriced stocks — have quietly beaten many flashy growth funds over five years. Should your portfolio have some? Here's what you need to know before investing.
₹5,000/month SIP in a top value fund could now be worth ₹5.2 lakh — that's 2 years of chai money turned into a small emergency fund.
Top value mutual funds have compounded your money this fast over 5 years
Key Takeaways
Check your current SIP portfolio — if all your funds chase growth stocks, add one value fund to balance sector concentration risk.
Compare 5-year and 10-year rolling returns (not just point-to-point) on platforms like MFCentral or Morningstar India before choosing a value fund.
Commit to a minimum 5–7 year horizon if you invest in value funds — these strategies underperform in bull markets before catching up sharply.
Value mutual funds — which buy underpriced stocks — have quietly beaten many flashy growth funds over five years. Should your portfolio have some? Here's what you need to know before investing.
Here's what happened: Several value-oriented mutual funds in India have delivered 18–22% CAGR over five years, outperforming many large-cap and flexi-cap peers in the same period.. Value funds follow a 'buy cheap, wait for the market to recognise it' strategy — they focus on stocks trading below their intrinsic worth, not hot trending names.. Market experts increasingly suggest a blended approach: mixing value funds with growth-focused funds to reduce risk and smooth out returns across different market cycles..
What you should do: Check your current SIP portfolio — if all your funds chase growth stocks, add one value fund to balance sector concentration risk.. Compare 5-year and 10-year rolling returns (not just point-to-point) on platforms like MFCentral or Morningstar India before choosing a value fund.. Commit to a minimum 5–7 year horizon if you invest in value funds — these strategies underperform in bull markets before catching up sharply..
Value funds shine most AFTER a market correction — if you invest during a downturn, you're essentially buying already-cheap stocks at an even bigger discount.
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- [1]“These value mutual funds delivered the highest returns in 5 years. Should you invest?” mint - money · 10 Jul 2026
This article is reported by GoCredit's Editorial Team based on the source above. GoCredit synthesises, contextualises, and adds India-borrower-relevant analysis. We are not the original publisher.