MF Tracker: Nippon India Value Find turns Rs 10,000 SIP to Rs 1.56 crore in 21 years

Nippon India Value Fund has turned a Rs 10,000 monthly SIP into Rs 1.56 crore over 21 years, according to an analysis by ETMutualFunds.

Launched on June 8, 2005, the fund currently carries a four-star rating from both Value Research and Morningstar. A monthly SIP of Rs 10,000 started 10 years ago would have grown to Rs 27.06 lakh, delivering an XIRR of 15.71%.

Similarly, an SIP started five years ago would now be worth Rs 8.19 lakh with an XIRR of 12.75%. For investors who began three years ago, the investment value would have grown to Rs 3.90 lakh, translating into an XIRR of 5.56%.


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A lumpsum investment of Rs 1 lakh made in this fund at inception would have been Rs 21.78 lakh with a CAGR of 15.79%. If the same investment was made 10 years ago, the value would have been Rs 4.25 lakh with a CAGR of 15.56%.

A lumpsum investment of Rs 1 lakh made in the fund at inception would have grown to Rs 21.78 lakh, delivering a CAGR of 15.79%.

If the same investment had been made 10 years ago, it would now be worth Rs 4.25 lakh with a CAGR of 15.56%.

Similarly, a Rs 1 lakh lumpsum investment made five years ago would have grown to Rs 1.61 lakh, translating into a CAGR of 17.23%.

In the last three years, the value of the same lumpsum investment would have been Rs 1.61 lakh with a CAGR of 17.23%.

What does the fund manager say?

Dhrumil Shah, Fund Manager – Equity, said the strategy remains focused on identifying businesses disrupted by short-term events where quality companies become available at attractive valuations relative to their historical levels.

He added that the fund avoids themes where valuations have entered a “frenzy zone” and trade at a significant premium to the broader market, while also steering clear of value traps where there is uncertainty around terminal value.

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In the last three months, the fund lost 2.35% whereas the benchmark lost 0.84% and the category average was 0.05%. In the last six months, the fund gave a negative performance of 5.94% against a negative return of 5.46% by the benchmark and a negative average of 3.44% by the category.

In the last one year, the fund lost 1.73% whereas the benchmark lost 1.15% and the category average was 0.73%. In the last three years, the fund gave 17.62% compared to 13.33% by the benchmark and 15.45% as the category average. In the last five years, the fund gave 15.33% compared to 12% by the benchmark and 13.66% as the category average.

Similar performance going ahead ?

Pathak said that returns of this magnitude may be difficult to replicate, and investors should avoid anchoring expectations to historical performance. However, the core principles of value investing remain relevant, and India's long-term growth story is likely to continue creating attractive opportunities across market cycles.

Being a value fund, the fund holds 57.43% in large caps, 27.35% in mid caps, 1.41% in others, and 13.82% in small caps. In comparison to the value category, the fund is overweight on mid caps.

This value fund has the highest allocation in banks of around 26.43%, followed by 9.70% in finance. The fund had 7.40% and 7.33% in IT and Power.

The PE and PBV ratio of the flexi cap fund were recorded at 39.31 times and 4.50 times respectively whereas the dividend yield ratio was recorded at 1.26 times as of April 2026.

ETMutualFunds analysed the other key ratios of the fund in a three year period. Based on the last three years, the scheme has offered a Treynor ratio of 1.21 and an alpha of 0.30. The sortino ratio of the scheme was recorded at 0.58.

The return due to net selectivity was recorded at 0.27 and return due to improper diversification was recorded at 0.02 in the last three years.

Does the current market environment still favor value-oriented funds?

Pathak said value investing has always gone through phases of underperformance, both in India and globally. The current market environment is neither uniformly cheap nor expensive, which creates opportunities for active value managers to selectively identify businesses trading below their intrinsic value.

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Others in the value basket

Around 16 value funds have completed five years in the market. Among them, HSBC Value Fund delivered the highest return of around 17.27% over the last five years, followed by ICICI Prudential Value Fund, which returned 16.16% during the same period. Sundaram Value Fund delivered the lowest return at 9.68% over the past five years.

Suitability and way ahead

Pathak said value funds are best suited for patient investors with a long-term investment horizon of at least 7–10 years and the discipline to stay invested through periods of underperformance. He added that the outlook for value investing remains constructive, as market returns are likely to become increasingly driven by fundamentals and valuations over time.

(Disclaimer: Recommendations, suggestions, views and opinions expressed by the experts are their own and do not represent the views of The Economic Times.)

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