There were 22 schemes in the value and contra fund category. All the schemes in the category offered positive returns. Axis Value Fund offered the highest return of around 14.04%, followed by JM Value Fund that offered 14.02%. Quant Value Fund offered the lowest return of 3.80%.
Quarterly performance
During April-June quarter in 2023, most schemes in the value and contra fund category managed to offer double-digit returns, except for DSP Value Fund. The category offered an average return of around 12.72%. During the same period, the benchmark indices, NIFTY 500 – TRI, NIFTY500 Value 50 – TRI, and S&P BSE 500 – TRI, offered around 13.25%, 13.25%, and 13.18% respectively.
During the quarter that ended in June, Axis Value Fund, the topper in the category, offered around 16.77% returns, followed by Nippon India Value Fund which offered 15.78%. DSP Value Fund offered the lowest return of around 9.25%. Around 21 schemes out of 22 schemes offered more than 10% return in the quarter that ended in June.
During January-June 2023, out of 26 schemes, 14 schemes outperformed their respective benchmarks. During April-June, out of 22 schemes, eight schemes managed to beat their respective benchmarks. However, seven schemes outperformed their respective benchmarks in both the horizons.
As per AMFI data, during January-June 2023 (last available data), the value fund/contra fund category witnessed a total inflow of Rs 5,632.82 crore. The asset under management for the value fund/contra fund category as on June 30 was Rs 1.04 lakh crore.
Note, the above exercise is not a recommendation. The main purpose of this exercise is just to find out how value fund/contra fund schemes performed in the first half of 2023. One should not make investment or redemption decisions based on the above exercise. One should always choose schemes based on risk appetite, investment horizon and goal.
We considered the regular and growth options. The returns for January to June 2023 were calculated from January 2,2023 to June 30,2023. The quarterly returns for the quarter that ended in June 2023 were calculated from April 3, 2023 to June 30, 2023.
Value funds invest in stocks with reasonable valuations. Value investors buy such stocks and wait for the market to discover these stocks. When the discovery happens, the stock prices will go up, and value investors make money.
During volatile phases these schemes fare better than schemes that stock up on expensive stocks. Value funds are recommended to only sophisticated investors with a long investment horizon.
If you are looking for recommendations, see : Best value mutual funds to invest in 2023
