Rs 2.30 Crore with Just Rs 10,000 SIP: This is India's Largest Value Mutual Fund by ICICI Prudential AMC, Holding 26% of Total AUM in Value Category
ICICI Prudential Value Discovery Fund, by Closing Assets Under Management (AUM), has successfully completed 20 years.
The largest value fund in India, ICICI Prudential Value Discovery Fund, by Closing Assets Under Management (AUM), has successfully completed 20 years. The Scheme has a Closing AUM of Rs 48,805.97 crores which accounts for nearly 25.9 per cent of the total AUM in the value category. This indicates significant investor trust of value investors in the scheme. Data as on July 31, 2024. (Source: Value Research)
The scheme follows a value investment style by investing in a diversified portfolio of stocks that have attractive valuations but are trading less than their intrinsic values.
A lump sum investment of Rs 10 lakh at the time of inception (August 16, 2004), as of July 31, 2024, would be worth approximately Rs 4.56 crore i.e. a CAGR of 21.09 per cent. A similar investment in Nifty 50 would have yielded a CAGR of 16.2% at approximately Rs 2 crore.
Speaking on the occasion of 20 years’ completion, Nimesh Shah, MD & CEO of ICICI Prudential AMC Ltd says, “It’s important to recognize that value investing requires patience, as it can take time for the full benefits to materialize. The journey of the ICICI Prudential Value Discovery Fund has demonstrated that the value investing approach is effective in the Indian market as well. We take pride in the fact that the Scheme has consistently helped patient investors achieve long-term wealth.”
S Naren, ED & CIO, ICICI Prudential AMC Ltd, remarked and shared his thoughts “When ICICI Prudential Mutual Fund launched its Value Discovery Fund in 2004, there were doubts about whether value investing could thrive in a growth market like India. However, our conviction was rooted in the belief that value investing, which had proven successful in other growth economies like the USA, would find its place here as well.”
He further adds “Over the past two decades, the performance of ICICI Prudential Value Discovery Fund has demonstrated that value investing can indeed work in a growth market like India. While there have been phases of underperformance—such as between May 2006 to February 2009, and again from 2016 to 2018—the long-term results underscore the enduring strength of value investing. We remain confident that, despite these intermittent phases, the long-term prospects of Value Investing are strong.
We believe that the ICICI Prudential Value Discovery Fund is a good investment option for long-term investors in India, particularly through the Systematic Investment Plan (SIP) route. Furthermore, during periods of underperformance, we see opportunities for aggressive long-term investments through lump sum contributions. The journey of value investing in India is one of patience and conviction, and we are confident that the future will continue to reflect this.”
With value investing being suited for long-term investing, SIP emerges as a good investment pathway. In terms of SIP performance, a monthly investment of Rs 10,000 via SIP since the inception, which would amount to a total investment of Rs 24 lakh, would have grown to Rs 2.30 crore as of July 31, 2024 i.e. a CAGR of 19.41 per cent. A similar investment in Nifty 50 TRI would have yielded a CAGR of 14.21 per cent.
Data as on July 31, 2024.The returns are calculated by XIRR approach assuming investment of Rs 10,000/- on the 1st working day of every month. XIRR helps in calculating return on investments given an initial and final value and a series of cash inflows and outflows with the correct allowance for the time impact of the transactions.
Disclaimer: The article is for informational purposes only and not investment advice.