This represents a CAGR of 19.41%.
In comparison, the same investment in the Nifty50 TRI would have grown at a CAGR of 14.21%.
ICICI Prudential Value Discovery Fund recently celebrated its 20th anniversary.
The fund has demonstrated the power of long-term value investing.
A one-time investment of ₹10 lakh at the inception of the fund on August 16, 2004, would now be worth ₹4.56 crore, reflecting a CAGR of 21.09%.
In contrast, a similar investment in Nifty50 would have grown to ₹2 crore, at a CAGR of 16.2%.
With an AUM of ₹48,806 crore as on July 31, 2024, the fund is the largest value fund in India.
Sankaran Naren, Executive Director and Chief Investment Officer, ICICI Prudential AMC, said, “When ICICI Prudential Mutual Fund launched its Value Discovery Fund in 2004, there were doubts about whether value investing could thrive in a growing market like India. However, our conviction was based on the belief that value investing, which had proven successful in other growing economies like the US, would find its place here as well.”
“While there have been periods of underperformance, the long-term results underscore the enduring strength of value investing. We remain confident that, despite these intermittent phases, the long-term outlook for value investing is sound,” he said.
He also highlighted the fund’s appeal to long-term investors, particularly through the SIP route.
“We believe that the ICICI Prudential Value Discovery Fund is a good investment option for long-term investors in India, particularly through Systematic Investment Plan (SIP) Route“Furthermore, during periods of underperformance, we see opportunities to make aggressive long-term investments through lump-sum contributions. The path of value investing in India is one of patience and conviction, and we are confident that the future will continue to reflect this,” Naren concluded.
The NAV of the fund was ₹456.80 as on August 23, 2024.
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