MF investment: In recent months, there has been a rise in equity markets, with some segments experiencing corrections. Despite this, valuations remain high for most indices. Given the trend of increasing benchmarks and market corrections, investors may find value in constructing a portfolio focused on strong value-based stock selection criteria. Value funds typically target companies in mature industries or with slow growth, which may not be attractive to growth investors at present. However, value investors anticipate these companies holding the potential to deliver robust returns over the long term.
An example of a value fund that has demonstrated strong returns is the JM Value Fund. This open-ended diversified equity scheme aims to achieve long-term capital growth by investing primarily in a diversified portfolio of undervalued securities. The fund has been in operation for 11 years and 9 months. It was launched on January 1, 2013.
As of September 30, 2024, the JM Value Fund Direct Plan-Growth has assets under management (AUM) totaling Rs 1,085 crores, making it a relatively small fund within its category. The fund’s expense ratio is 0.83%, which is in line with industry standards for Value Oriented funds.
JM Value Fund Direct Plan-Growth returns of last 1-year are 50.2%. Since launch, it has delivered 17.78% average annual returns. The scheme’s benchmark index is BSE 500 TRI, with an additional benchmark index of Nifty 50 TRI. The scheme is managed by Satish Ramanathan, Asit Bhandarkar, Chaitanya Choksi, and Ruchi Fozdar.
Currently, the scheme has allocated 99.86 percent of its assets to equity, with the remaining portion in debt/cash. The top holdings of the fund include HDFC Bank, NTPC, Dr Reddy’s Labs, ICICI Bank, HPCL, Infosys, TREPS, Restaurants Brands Asia, LIC Housing Finance, and SBI.
The fund has doubled the money invested in it every 2 years.
Period This fund Category average
1 month -3.02% -2.03%
3 months 1.42% 3.33%
6 months 20.1% 17.44%
1 year 50.2% 45.84%
3 years 27.13% 21.69%
5 years 27.32% 25.48%
10 years 20.21% 17.35%
Since inception 17.78%
Other similar funds
| Fund name | AUM (in Crs.) | Fund age | Expense ratio |
| JM Value Fund | Rs 1,085 Crs | 11 years 9 mn | 0.83% |
| ICICI Prudential Value Discovery Fund | Rs 51,198 Crs | 11 years, 9 mn | 0.98% |
| Bandhan Sterling Value Fund | Rs 10,601 Crs | 11 years, 9 mn | 0.67% |
| Templeton India Value Fund | Rs 2,305 Crs | 11 years, 9 mn | 0.84% |
| Nippon India Value Fund | Rs 8,962 Crs | 11 years, 9 mn | 1.14% |
Disclaimer: Business Today provides market and mutual fund news for informational purposes only and should not be construed as investment advice. All mutual fund investments are subject to market risks. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.