Value funds offered an average return of 35% in 2021

Value-oriented mutual fund schemes or value funds offered an average return of 35% in 2021, according to Value Research. These schemes have given around the same 35% returns this year till date.

The benchmark S&P BSE 100 TRI offered around 25.99% in the current year. Almost all schemes offered more returns than the benchmark returns. There are 18 schemes that have completed one year in the category.

IDFC Sterling Value Fund, the topper in the category, offered around 63% returns in the last one year. Quantum Long Term Equity Fund stood last in the performance chart with 24% returns. ICICI Prudential Value Discovery fund, the larger fund with an AUM of Rs 21,800 crore, offered around 37% returns.


Here are the toppers in 2021:

Scheme name	Returns (%)
IDFC Sterling Value Fund	65.26
SBI Contra Fund	50.72
Templeton India Value Fund	44.77
L&T India Value Fund	41.47
Nippon India Value Fund	40.06

Source: Value ResearchLet's take a look at the laggards of 2021:

Scheme name	Returns (%)
Quantum Long Term Equity	25.24
Indiabulls Value Fund	28.00
Tata Equity Fund	28.91
Invesco India Contra Fund	30.68
Kotak India EQ Contra Fund	30.74

Source: Value ResearchValue funds have been in a spot in the last few years as the category has severely underperformed the market. According to fund managers, value funds suffered because the market has been driven by a few heavy weight index stocks. However, as the rally has become broad based in the market value schemes have started performing in the last year.

However, investors should remember the characteristics of value funds before betting on them. Fund managers say the liquidity-driven rally in the market has seriously compromised the pitch of value funds. Investors were happy to pay for growth and value has taken a backseat. As central banks world over is ready for tightening liquidity and ready to hike interest rates, value may stage a comeback.