Best Mutual Funds: Before you decide to invest in a mutual fund, it is important and advisable to evaluate the past returns of that scheme and compare them with the corresponding schemes in the same category.
For example, before deciding to invest in a value mutual fund, it is recommended to assess the returns of that scheme over the past few years (typically 3 years or so) and compare them with those of its competitors in the same category.
What are value funds?
For the uninitiated, value mutual funds refer to those funds which identify stocks that are currently undervalued but are expected to perform well over time as the value is unlocked. However, these funds will carry a higher risk, as the impact of a wrong selection can be substantial on the portfolio’s return.
Meanwhile, contra funds are those equity funds which take a contrarian view on the market. According to SEBI guidelines, a fund house can either offer a Contra Fund or a Value Fund, but not both.
There are 25 schemes in the category of value/contra funds, with total assets valued at ₹2.04 lakh crore as of 30 September 2025.
Value funds delivering over 20%
There are approximately six value mutual funds that have delivered an annualised return of over 20%in the past three years.
(Source: AMFI; Three-year returns as on 6 November 2025)
As the table above shows, the HSBC Value Fund delivered a 22.89% annualised return in the past three years, and the JM Value Fund gave a 22.45% return.
Other schemes that have delivered a return of over 20% CAGR in the past three years are Axis Value Fund, ICICI Prudential Value Fund, Nippon India Value Fund and Quant Value Fund.
However, it is important to note that past returns do not guarantee future returns. In other words, just because a scheme has delivered good performance in the past does not mean it will continue to deliver good returns in the future as well.
There are other factors which play an important role in making a mutual fund investment worthy. These include the category of mutual fund, the performance of the fund manager(s), and the reputation of the fund house, among others.
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