Top 5 Best Value Mutual Funds to invest in 2018-2019

Top 5 Best Value Mutual Funds to invest in 2018-2019Top 5 Best Value Mutual Funds to invest in 2018-2019


SENSEX has crossed 38,000 points and heated up. In this heated market, one of the best ways to invest in mutual funds is to invest in Top Value Mutual Funds. Value Mutual Funds would invest in the concept of Value Investing. This concept would help to invest in funds that invests in stocks that are available at discounted price. What are Value Mutual Funds? How Value Mutual Funds would help you to provide stable returns in this heated stock market? Which are the Top 5 Value Mutual Funds to invest now in 2018-2019 in India?

Also Read: 13 Stocks Removed from ASM List by BSE/BSE – Should you invest now?

What are Value Mutual Funds in India?


Value Funds run on the concept of Value Investing. Value Investing focuses on identifying stocks that are priced at a discount to the intrinsic value, i.e. the stock price that is not reflection its true worth.

How Value Mutual Funds would help you to grow money in this heated stock market?


With the Value Investing concept the stock has a higher margin of safety, risk is mitigated and has high potential for appreciation in share price.  There are only a few funds which  play with value Investing Strategy in India.  These funds are high risk in nature. These are best risk reward preposition funds, especially when heated market environment. Most funds have multicap approach while some have mid cap or large cap approach.

These value mutual funds are good for medium to long term tenure who are looking for stability but yet high returns.

How we filtered Top 5 Best Value Mutual Funds to invest in 2018-2019?


We have filtered these Value Funds based on below parameters:

1) Mutual funds that invests based on value investing concept.

2) Funds that have performed well in the last 1 year, 3 years, 5 years and 10 years. Some funds have under performed in last 1 year, while they have performed well in 5 to 10 years. We reviewed them carefully with their strategy and eliminated a couple of funds.

3) Value Funds that have good Crisil and Value Research Ranking

4) Value funds that gave the highest returns through SIP over the last 5 years.

Some of these funds are repetitive from our earlier recommendation. If you are already investing, continue to invest in these funds.

Difference between Value Funds vs Growth Funds


value funds vs growth mutual fundsLet us see some major differences between value funds and growth funds

1) Growth funds would focus on stocks that give higher earnings. Value funds on the other hand would focus on companies that are in lower sales and earnings, but give us stable dividends and price appreciation.

2) If you are thinking about regular dividends, value funds would perform better than growth funds. Growth funds focus on capital appreciation and steady long-term growth while value funds focus on stocks fare available at discounted prices but providing good dividends.

3) Value funds give you steady returns over a longer period of time, while growth funds could give higher returns both in the long-term and short-term.

4) During the times of recession, value funds tend to do better, or at least stay afloat longer, compared to growth funds.

5) The downside in growth funds is fluctuation of stock prices in the market, leading to uncertainty in profits, while the risk in value funds is that the stocks that looked under priced may turn out to be correctly priced and hence yield little profit.

How Value Mutual Funds are taxed in India?


Here is how the value mutual funds are taxed in India.

Value Mutual Funds taxation is same like any other equity or growth mutual fund.

1) Short-term gains from value funds, if the units are redeemed before 12 months, are taxed at the rate of 15%.

2) Long-term capital Gains > 12 months on sale of units of Value Funds if more than Rs 1 lakh at @ 10% without the benefit of indexation.

Top 5 Best Value Mutual Funds to invest in 2018-2019


# 1 – Invesco India Contra Fund


Overview: The scheme seeks to generate capital appreciation by investing predominantly in Equity and Equity Related Instruments through contrarian investing.

This value fund gave highest annualized returns of 28% in the last 5 years compared to its benchmark annualized return of only 19%. Even in this heated market, this fund gave 25% returns in the last 1 year. If one would have invested Rs 5,000 per month through SIP for the last 5 years, the investment amount would have been Rs 60,000 and the invested value would have now grown to Rs 100,000.

This fund has been ranked by Value Research Online as a 4 Star (4 out of 5 Stars) and Rank-1 by Crisil.

This is one of the top performing value mutual funds in India to invest in 2018-2019.

You may like: Best Small Cap Mutual Funds to invest in 2018-19

# 2 – Tata Equity PE Fund


Overview: The fund seeks to provide capital appreciation by investing 70 percent of the total assets in stocks having a trailing P/E ratio less than that of the BSE Sensex at the time of investment.

This value fund gave highest annualized returns of 28% in the last 5 years compared to its benchmark annualized return of only 16%. Even in this heated market, this fund gave 14% returns in the last 1 year. If one would have invested Rs 5,000 per month through SIP for the last 5 years, the investment amount would have been Rs 60,000 and the invested value would have now grown to Rs 100,000.

This fund has been ranked by Value Research Online as a 4 Star (4 out of 5 Stars) and Rank-2 by Crisil.

This is one of the good value mutual funds to invest in 2018-2019.

# 3 – ICICI Pru Value Discovery Fund


Overview: The scheme seeks to generate returns through a combination of dividend income and capital appreciation by investing primarily in a well-diversified portfolio of value stocks.

This value fund gave highest annualized returns of 25% in the last 5 years compared to its benchmark annualized return of only 19%. Even in this heated market, this fund gave 11% returns in the last 1 year. If one would have invested Rs 5,000 per month through SIP for the last 5 years, the investment amount would have been Rs 60,000 and the invested value would have now grown to Rs 86,000.

This fund has been ranked by Value Research Online as a 3 Star (3 out of 5 Stars) and Rank-3 by Crisil.

This is one of the best value mutual funds for 2018-2019 to invest.

# 4 – IDFC Sterling Value Fund


Overview: The Scheme seeks to generate capital appreciation from a diversified portfolio of equity and equity related instruments by following a value investment strategy.

This value fund gave highest annualized returns of 24% in the last 5 years compared to its benchmark annualized return of only 19%. Even in this heated market, this fund gave 12% returns in the last 1 year. If one would have invested Rs 5,000 per month through SIP for the last 5 years, the investment amount would have been Rs 60,000 and the invested value would have now grown to Rs 95,000.

This fund has been ranked by Value Research Online as a 3 Star (3 out of 5 Stars) and Rank-2 by Crisil.

This is one of the best value funds in India for 2018-2019.

# 5 – HDFC Capital Builder Value Fund


Overview: The scheme seeks to achieve capital appreciation/income in the long term by primarily investing in undervalued stocks.

This value fund gave highest annualized returns of 23% in the last 5 years compared to its benchmark annualized return of only 19%. Even in this heated market, this fund gave 17% returns in the last 1 year. If one would have invested Rs 5,000 per month through SIP for the last 5 years, the investment amount would have been Rs 60,000 and the invested value would have now grown to Rs 94,000.

This fund has been ranked by Value Research Online as a 3 Star (3 out of 5 Stars) and Rank-3 by Crisil.

This is one of the best performing value funds in India for 2018-19.

You may like: Solution Based Mutual Funds – Who can invest?

Summary of Top 5 Mutual Funds (Value investing) for 2018


Top 5 Best Value Mutual Funds List for 2018-19

If you enjoyed this article, share it with your friends and colleagues through Facebook and Twitter.

Suresh

Top 5 Best Value Mutual Funds to invest in 2018-2019

14 comments

  • Sameer Jain

    Hello Sir,

    I invest 2,000 every month in the below mutual funds (total 6,000/ month). These funds were bought from an advisor in 2016.

    I was to raise capital in coming 10 years and the goal is rupees 20 lakh for home renovation. I have my family home and my take home salary is 30,000. My age is 25 years old.

    Please advice me on the below portfolio. I do not have any other investments. I have 50 lakh term plan that was purchased this year.

    1. Parag parikh long term equity fund

    2. Kotak Standard Multicap Fund

    3. SBI Blue chip fund

  • narayana rao

    I am watching on youu tube and reading a lot of things about – Parag parikh long term equity fund

    Can you please let me know if this fund would be suitable for 5K SIP for 5 to 7 years time horizon.

    How is this fund house? Are there any cons of Parag parikh long term equity fund scheme?

    I invest in SBI blue chip direct and AB sunlife front-line equity direct funds. The current SIP in both funds is 10K each.

    Please help me on the question.

    • Hi Narayana, This multicap fund was launched 5 years back. Fund is currently doing good. You can invest in this fund. Alternatively you can look for consistent performing multi-cap mutual funds

  • Jakey

    Very good article! Thanks!

  • SUMANTA BASAK

    How do you arrive at this list? Suprised to see "PPFAS Value Fund" not there in your list?

    • Hi Sumanta, If you observe, I have listed top 5 value funds that outperformed and gave over 25% annualised returns in the last 5 years. PPFAS Value fund i.e. PPFAS long Term Equity fund gave 20% annualised returns in the last 1 year or even in the last 5 years, hence not forming part of our list.

  • Vivek

    Excellent article in today’s volatile times. Request you to publish an article on the funds which has given the least negative return and also started returning to normal returns as sensex is rising

Leave a Reply

Your email address will not be published. Required fields are marked *