Launched in August 2004, the scheme had an AUM of Rs 48,805.97 crore, as of July 31, 2024, accounting for nearly 25.9% of the total AUM in the value category. This reflects significant investor trust in the scheme (Source: Value Research)
The scheme follows a value investment style by investing in a diversified stock portfolio that have attractive valuations but are trading below their intrinsic values.
A lump sum investment of Rs 10 lakh made in the fund since its inception would have been Rs 4.56 crore with a CAGR of 21.09%. A similar investment in Nifty 50 would have turned Rs 10 lakh to Rs 2 crore with a 16.2% CAGR.
A monthly SIP of Rs 10,000 in the scheme since its inception would be worth Rs 2.30 crore now with an XIRR of 19.41%.
“It’s important to recognize that value investing requires patience, as it can take time for the full benefits to materialise. The journey of the ICICI Prudential Value Discovery Fund has demonstrated that the value investing approach is effective in the Indian market as well. We take pride in the fact that the scheme has consistently helped patient investors achieve long-term wealth,” said Nimesh Shah, MD & CEO of ICICI Prudential AMC. “When ICICI Prudential Mutual Fund launched its Value Discovery Fund in 2004, there were doubts about whether value investing could thrive in a growth market like India. However, our conviction was rooted in the belief that value investing, which had proven successful in other growth economies like the USA, would find its place here as well,” said S Naren, ED & CIO, ICICI Prudential AMC.He further added “Over the past two decades, the performance of ICICI Prudential Value Discovery Fund has demonstrated that value investing can indeed work in a growth market like India. While there have been phases of underperformance—such as between May 2006 to February 2009, and again from 2016 to 2018 — the long-term results underscore the enduring strength of value investing. We remain confident that, despite these intermittent phases, the long-term prospects of value investing are strong.”
Naren also added, “We believe that the ICICI Prudential Value Discovery Fund is a good investment option for long-term investors in India, particularly through the Systematic Investment Plan (SIP) route. Furthermore, during periods of underperformance, we see opportunities for aggressive long-term investments through lump sum contributions. The journey of value investing in India is one of patience and conviction, and we are confident that the future will continue to reflect this.”
The scheme is managed by Sankaran Naren and Dharmesh Kakkad and is benchmarked against Nifty 500-TRI.