Value Funds Underperforming? Your SIP Still Has Hope
Most value mutual funds have struggled over the past year, with many posting losses. But experts say value investing works over long cycles — not 12 months. Here's what you should actually check before pulling out your money.
A value fund holding for 5+ years has historically beaten FD returns by 3–4x — patience pays more than panic.
Value mutual funds in your portfolio may actually be losing money right now
Key Takeaways
Check your value fund's 3-year and 5-year returns — not just the 1-year number — before making any exit decision.
Compare your fund's performance against its benchmark index (e.g., Nifty 500 Value 50) to judge whether underperformance is fund-specific or category-wide.
Avoid stopping your SIP in a value fund during a rough patch — rupee cost averaging works best when prices are low and markets are uncertain.
Most value mutual funds have struggled over the past year, with many posting losses. But experts say value investing works over long cycles — not 12 months. Here's what you should actually check before pulling out your money.
Here's what happened: Only a small fraction of value-style mutual funds delivered double-digit returns in the past year, while several schemes posted negative returns.. Value funds invest in stocks trading below their perceived intrinsic worth — these stocks tend to underperform during market rallies driven by momentum or growth stocks.. Market conditions in the past year favoured large-cap growth and momentum plays over beaten-down, undervalued stocks that value funds typically hold..
What you should do: Check your value fund's 3-year and 5-year returns — not just the 1-year number — before making any exit decision.. Compare your fund's performance against its benchmark index (e.g., Nifty 500 Value 50) to judge whether underperformance is fund-specific or category-wide.. Avoid stopping your SIP in a value fund during a rough patch — rupee cost averaging works best when prices are low and markets are uncertain..
Value funds are built for 5–7 year holding periods. Checking their 1-year return is like judging a slow-cooked biryani after 10 minutes — the timing simply isn't right.
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- [1]“Only 4 value mutual funds delivered double-digit returns in one year. Here's why experts aren't worried” mint - money · 21 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.