ICICI Prudential Value Fund turned a Rs 10,000 monthly SIP into Rs 2.37 crore in the last 22 years. The total investment amounted to Rs 26.4 lakh and delivered an XIRR of 17.04% since its inception.
A lump-sum investment of Rs 1 lakh made at inception would have grown to approximately Rs 46.6 lakh as of July 31, 2026, with a compound annual growth rate (CAGR) of 19.11%. A comparable investment in the Nifty 50 TRI would have grown to approximately Rs 20.1 lakh, a CAGR of 14.63%, over the same period.
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Over shorter timeframes such as three and five years, the scheme has delivered a CAGR of 13.44% and 16.05% as compared to the benchmark's return (Nifty 500 TRI) of 12.29% and 11.85% respectively.
The scheme is the largest actively managed value-oriented equity fund in the Indian mutual fund industry in terms of assets under management (AUM) at Rs 61,102 crore and accounts for nearly 28% of the total AUM in the value category indicating a reasonable investor trust of value investors in the scheme, according to a press release by the fund house.
Launched on August 16, 2004, the fund seeks long-term capital appreciation by identifying companies trading below their intrinsic value across market capitalizations and sectors. Over more than two decades, the strategy has been tested through several distinct market cycles, including periods of sharp drawdown and recovery, and has continued to follow a diversified, value-oriented approach to stock selection.
On a risk-adjusted basis, the scheme carried an annualised standard deviation of 12.72%, a Sharpe ratio of 0.63 and a beta of 0.79 relative to its benchmark, with a portfolio turnover ratio of 0.80 times for the equity portion, the release by the fund house said.
“Value investing cannot be looked at from a one or two-year perspective as this style of investing works over the long term. This is because the thesis of value investing is about buying stocks that have attractive valuations but are quoting at a discount to their intrinsic value. So, there will always be a lag at which the investment calls taken will deliver. This trend can be seen across various timeframes,” said Sankaran Naren, ED & CIO, ICICI Prudential AMC.
Naren further said that, “When it comes to managing the scheme, the approach is flexible, without any market cap bias. The investment decision is solely based on where we find value in the market. Large caps can offer better value as compared to mid and small caps, hence, the portfolio has a large cap tilt in the current market environment.”
The scheme is jointly managed by Sankaran Naren, Dharmesh Kakkad and Masoomi Jhurmarvala. The portfolio remains diversified, with equity holdings of 93.31% of net assets as at July 31, 2026.
This value fund has the highest allocation in the financial services sector with an allocation of 38.10%, followed by Healthcare (9.08%), Fast Moving Consumer Goods (9.00%), Information Technology (7.84%) and Automobiles & Auto Components (7.53%).
ICICI Prudential Value Fund is suitable for investors seeking long-term wealth creation through a value-oriented equity strategy, and who are comfortable with the volatility associated with equity markets.
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Earlier known as ICICI Prudential Value Discovery Fund, the scheme name has been changed to ICICI Prudential Value Fund with effect from June 16, 2025.
The fund is suitable for investors seeking long term wealth creation and want an open ended equity scheme following a value investment strategy. The principal invested in the fund is at “very high” risk according to the riskometer of the fund.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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