A lump sum investment of Rs 10 lakh at the time of inception (August 16, 2004), would be worth approximately Rs 3.1 crore as on July 31, 2023. That means the scheme has generated a CAGR of 20%. A similar investment in Nifty 50 would have yielded a CAGR of 15.6% at approximately Rs. 1.5 crore.
In terms of SIP performance, a monthly investment of Rs 10,000 via SIP since the inception, which would amount to a total investment of Rs 22.8 lakh, would have grown to Rs 1.59 crore as of July 31, 2023 i.e. a CAGR of 17.87%. A similar investment in Nifty 50 TRI would have yielded a CAGR of 13.22%.
Nimesh Shah, MD & CEO of ICICI Prudential AMC, said, “The greatest of the investing gurus, be it Warren Buffett, Seth Klarman, Joel Greenblatt etc. are all proponents of value investing as the way to build long term wealth. We at ICICI Prudential AMC believe value as an investment style is here to stay as investors are increasingly becoming aware of what constitutes value and why it must be followed diligently. But the caveat here is that value can test one’s patience at times. We may have to wait for a long time for value to deliver on its promise. Through the journey of ICICI Prudential Value Discovery Fund, we have endeavoured to prove that value as a style works well in India as well. We are happy to note that the Scheme over the years has helped patient investors create long-term wealth.”
“Globally as well as in the scheme, there have been patches of time when value investing has not done well. However, if an investor is ready to be patient, then value investing will deliver sizeable returns 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,” said S Naren, ED & CIO, ICICI Prudential AMC.
“Given the approach, it is advisable that investors should consider investing through the SIP route for the long term, especially during times when the past return is very good. On the other hand, when the past returns are low, we recommend investors to consider lump sum investing.”
