The scheme, which was launched in August 2004, had an AUM of Rs 48,805.97 crore as on July 31, 2024, accounting for nearly 25.9% of the total AUM in the value category. This reflects significant investor confidence in the scheme (Source: Value Research)
The plan follows a value investing style by investing in a diversified portfolio of stocks that have attractive valuations but are trading below their intrinsic values.
A global investment of Rs 10 lakh made in the fund since inception would have been Rs 4.56 crore at a compound annual growth rate (CAGR) of 21.09%. A similar investment in Nifty 50 would have turned Rs 10 lakh into Rs 2 crore at a CAGR of 16.2%.
A monthly SIP of Rs 10,000 on the plan since its inception would be worth Rs 2.30 crore now at an XIRR of 19.41%.
“It is important to recognise that value investing requires patience as it may take time for the full benefits to materialise. The track record of the ICICI Prudential Value Discovery Fund has shown that the value investing approach is effective in the Indian market as well. We are proud of the fact that the scheme has consistently helped patient investors achieve long-term wealth,” said Nimesh Shah, MD & CEO, ICICI Prudential AMC. “When ICICI Prudential Mutual Fund “When we launched our 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,” he said. S. NarenExecutive Director and Chief Investment Officer, ICICI Prudential AMC. He further added, “Over the past two decades, the performance of the ICICI Prudential Value Discovery Fund has shown that value investing can work in a growing market like India. While there have been phases of underperformance (such as between May 2006 and February 2009, and again between 2016 and 2018), the long-term results underline the enduring strength of value investing. We remain confident that despite these intermittent phases, the long-term prospects for value investing are sound.”
Naren also added, “We believe that ICICI Prudential Value Discovery Fund is a good investment option for long-term investors in India, particularly through the Systematic Investment Plan (SIP) route. Also, during periods of underperformance, we see opportunities for 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.”
The scheme is managed by Sankaran Naren and Dharmesh Kakkad and is benchmarked against Nifty 500-TRI.
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