Best Value Oriented Mutual Funds in India 2026: Top 10 & Guide
What Value Oriented mutual funds are, who should invest, key risks, and the top 10 funds with returns and risk data.
Value oriented mutual funds buy shares of companies that look undervalued compared with their fundamentals, expecting prices to rise over time. They suit long-term investors who can accept risk. This guide covers who should invest, benefits, risks, and the top 10 value funds from our data.
Key takeaways
- Value funds are open-ended equity schemes that follow a value investment strategy.
- They are often mistaken for contra funds, but they focus on stocks below intrinsic value rather than stocks temporarily out of favour.
- They suit long-term investors; checking 5 to 7 years of past performance helps.
- Risks include a slow turnaround of cheap stocks and underperformance.
- The top 10 funds below are ranked by an internal score, with return and risk numbers shown.
What are value oriented mutual funds?
Value funds invest in stocks deemed undervalued in price based on fundamentals. They buy shares of companies trading at a discount, usually because temporary factors have held prices down, in the hope of high returns in the long run.
How is a value fund different from a contra fund?
Contra funds aim to find stocks that are temporarily out of favour, whereas value funds concentrate on stocks trading below their intrinsic value.
Who should invest in value funds?
- Long-term investors: managers pick stocks expecting them to grow over time.
- Investors with high exposure to growth stocks: value funds can add balance in any market cycle.
- High-risk-appetite investors: performance may or may not improve, so you should be able to bear either outcome.
What should you consider before investing?
- Past performance: a period of 5 to 7 years shows how the manager has followed the value strategy across market cycles.
- Investment horizon: these funds suit a long-term tenure.
- Expense ratio: frequent portfolio changes can raise transaction costs.
- Risk: like all market-linked funds, value funds face risks based on market conditions.
Advantages of value mutual funds
- Diversification across undervalued stocks in different sectors.
- Lower downside risk: stocks that are already undervalued tend to be less affected in a bearish market.
- Growth potential: they can multiply wealth over the long term.
- Flexible investing: invest by lump sum or by SIP.
Risks of value mutual funds
- Holding periods: price discovery for cheap stocks can take longer than expected, sometimes several years.
- Underperformance: stocks may not perform as estimated, which can hurt your portfolio.
How are Value Oriented mutual funds taxed?
Gains from Value Oriented funds are subject to capital gains tax as equity mutual funds. The rates and holding-period rules depend on the fund type and can change, so check the current rules or speak to a tax advisor before you invest.
Top 10 Value Oriented mutual funds ranked by an internal score
These are the top 10 Value Oriented funds from our data, ranked by Invo Wealth's internal fund-quality score. The score itself is not shown, only the return and risk numbers behind it. A "--" means the fund has not completed that period or the data is unavailable.
Returns across 6 months to 5 years
Performance data as of 5 September 2026.
| Fund | 6M CAGR | 1Y CAGR | 3Y CAGR | 5Y CAGR |
|---|---|---|---|---|
| ICICI Prudential Value Fund (erstwhile Value Discovery Fund) | -7.73% | -2.07% | 12.15% | 14.56% |
| Nippon India Value Fund | 0.53% | 0.33% | 14.06% | 13.44% |
| Quant Value Fund | 39.53% | 20.32% | 19.08% | -- |
| HDFC Value Fund | 14.73% | 9.12% | 15.72% | 13.47% |
| Axis Value Fund | 15.86% | 10.81% | 17.24% | -- |
| HSBC Value Fund | 6.70% | 5.64% | 15.49% | -- |
| Aditya Birla Sun Life Value Fund | 25.48% | 15.94% | 14.26% | 14.00% |
| JM Value Fund | 19.04% | 1.30% | 11.44% | 14.33% |
| Bandhan Value Fund | 2.54% | 1.53% | 9.52% | 12.35% |
| DSP Value Fund | 7.66% | 9.29% | 15.51% | 12.07% |
Risk and consistency metrics
| Fund | ISIN | Volatility | Max drawdown (3Y) | Sortino ratio |
|---|---|---|---|---|
| ICICI Prudential Value Fund (erstwhile Value Discovery Fund) | INF109K01AF8 | 13.48% | -14.20% | 0.54 |
| Nippon India Value Fund | INF204K01GB3 | 18.43% | -17.85% | 0.52 |
| Quant Value Fund | INF966L01AQ6 | 22.67% | -24.73% | 0.73 |
| HDFC Value Fund | INF179K01426 | 16.62% | -18.52% | 0.73 |
| Axis Value Fund | INF846K013C4 | 16.94% | -17.63% | 0.82 |
| HSBC Value Fund | INF677K01023 | 19.34% | -19.93% | 0.59 |
| Aditya Birla Sun Life Value Fund | INF209K01LF3 | 20.22% | -22.59% | 0.48 |
| JM Value Fund | INF137A01037 | 20.70% | -27.52% | 0.29 |
| Bandhan Value Fund | INF194K01342 | 15.58% | -18.33% | 0.22 |
| DSP Value Fund | INF740KA1PM0 | 13.25% | -14.04% | 0.89 |
Look at 3-year and 5-year CAGR together with drawdown, since value strategies can take time to pay off.
How to invest in Value Oriented mutual funds
You can invest in these funds using the Invo Wealth app. Sign up, get complete portfolio insights and start investing in mutual funds that actually suit you.
Conclusion
Value funds suit patient investors who can wait for undervalued stocks to be recognised. Check track record, costs and risk before choosing one.
Frequently asked questions
What are value funds?
Value funds are open-ended equity schemes that follow a value investing strategy, buying stocks trading below their intrinsic value.
Is a value fund different from a contra fund?
Yes. Contra funds look for stocks that are temporarily out of favour, while value funds focus on stocks trading below their intrinsic value.
Who should invest in value funds?
Long-term investors, those who already hold growth stocks, and investors with a high risk appetite who can accept that performance may or may not improve.
What are the risks of value funds?
Price discovery can take longer than expected, stocks may underperform estimates, and a wrong analysis by the fund manager can hurt your investment.
How can I invest in value oriented mutual funds?
You can invest through a SIP or a lump sum. To invest in these funds, you can use the Invo Wealth app: sign up, get portfolio insights and start investing.
Mutual fund investments are subject to market risks; read all scheme-related documents carefully. This article is for education only and is not investment advice. Past performance does not guarantee future returns. Invo Wealth is an AMFI-registered mutual fund distributor (ARN-368528).