Top 6 Best Value Mutual Funds with 218% – 244% Returns in 5 Years

When it comes to long-term wealth creation, value mutual funds have always had a special place in the portfolio of investors who prefer fundamentally strong companies at attractive prices. By following the time-tested principle of value investing, these funds focus on businesses that are undervalued compared to their intrinsic worth and hold them for years, allowing compounding to work in the investor’s favor.

Over the past five years, a handful of value funds in India have not only stayed true to this strategy but have also delivered spectacular returns ranging between 218% and 244%. For investors who want to explore long-term opportunities in equity markets, these funds offer valuable insights into how patience and discipline can generate wealth.

In this article, we take a deep dive into the six best value mutual funds that have stood out with their performance in the last five years.

What Makes Value Mutual Funds Attractive?

Before looking at the top performers, it is important to understand why value mutual funds are different from regular equity funds. Unlike growth funds, which chase high-growth companies even at premium valuations, value funds seek out companies that are currently trading at lower-than-expected prices despite having strong fundamentals.

Key traits of value mutual funds include:

• Focus on undervalued yet fundamentally sound companies
• Long-term horizon, usually five years or more
• Ability to withstand short-term volatility
• Diversified investments across large, mid, and small-cap stocks
• Potential for significant wealth creation if held patiently

These funds are best suited for investors who can remain committed during market cycles and are comfortable with moderate to high risk.

Top 6 Value Mutual Funds with Highest 5-Year Returns

Here are the six best-performing value mutual funds in India that delivered extraordinary absolute returns in the last five years:

Mutual Fund	5-Year Absolute Return
Bandhan Value Fund	243.6%
Templeton India Value Fund	243.6%
HSBC Value Fund	230.4%
JM Value Fund	230.4%
ICICI Prudential Value Fund	230.4%
Nippon India Value Fund	217.6%

Data as of 6th September 2025

Now, let us analyze each fund in detail to understand what makes them stand out.

Bandhan Value Fund

Bandhan Value Fund has been a consistent performer, focusing on undervalued companies across sectors and market caps. Over the last five years, it has delivered an absolute return of 243.6%, which translates to nearly 28% annualized returns.

A one-time investment of ₹1 lakh five years ago would be worth around ₹3.44 lakh today. While short-term returns have faced volatility, long-term investors have been rewarded handsomely. The fund suits those with a long investment horizon and the ability to tolerate interim corrections.

Templeton India Value Fund

Matching Bandhan Value Fund in performance, Templeton India Value Fund has also generated 243.6% returns in the last five years. The fund invests in companies trading at attractive valuations and aims to hold them until their intrinsic value is recognized by the market.

Like other value funds, it may face short-term underperformance during bullish phases driven by growth stocks. However, its disciplined value approach has rewarded patient investors over time. With a 10-year annualized return of 16%, this fund demonstrates its resilience through different market cycles.

HSBC Value Fund

HSBC Value Fund stands out with its diversified portfolio and disciplined investment strategy. Delivering 230.4% returns over five years, the fund has turned ₹1 lakh into ₹3.3 lakh during this period.

Its strength lies in identifying companies trading below their intrinsic value while maintaining a balance across sectors. Investors looking for stability along with strong returns will find this fund attractive, though they must be prepared for short-term price fluctuations caused by valuation corrections.

JM Value Fund

Known for its aggressive approach, JM Value Fund has also generated 230.4% returns in five years. With exposure to small and mid-cap stocks, the fund carries higher risk but also offers higher reward potential.

Over the long run, it has delivered consistent double-digit annualized returns. However, investors must note that the fund can witness sharp drawdowns during market downturns. It is more suitable for aggressive investors who are comfortable with volatility and willing to stay invested for longer durations.

ICICI Prudential Value Fund

One of the most trusted names in the Indian mutual fund industry, ICICI Prudential Value Fund has maintained a strong track record. With 230.4% absolute returns over the past five years, it has converted ₹1 lakh into ₹3.3 lakh.

The fund maintains a large-cap bias, which makes it slightly less volatile compared to others in this category. This makes it an excellent option for investors looking for steady long-term returns with a value investing approach. Over the last decade, it has compounded wealth at around 17% annually, highlighting its consistency.

Nippon India Value Fund

Nippon India Value Fund completes the list with 217.6% returns in five years. While its performance is slightly lower compared to peers, it has still outperformed broader benchmarks by a wide margin.

With a balanced mix of mid-cap and small-cap exposure, the fund has the potential for higher gains but also carries higher risk. It suits investors with a moderate-to-high risk appetite who can stay invested for at least five to seven years.

Should You Invest in Value Mutual Funds Now?

The past five years clearly highlight the strength of value investing in the Indian market. However, investors should remember that these returns came with periods of volatility and drawdowns. Value funds often underperform during phases where growth stocks dominate, but they tend to catch up and even outperform in the long run.

If you are considering investing in value mutual funds, here are a few things to keep in mind:

• Have a minimum horizon of 5 to 7 years
• Be ready to tolerate short-term underperformance
• Choose funds that align with your risk appetite
• Avoid chasing past returns; focus on consistency and fund strategy
• Consult a financial advisor to match these funds with your goals

Conclusion

Value mutual funds in India have proven their ability to generate substantial wealth for investors who remain patient and disciplined. The top six funds discussed here have delivered extraordinary returns between 218% and 244% over the last five years, outpacing many other categories of mutual funds.

Bandhan Value Fund and Templeton India Value Fund emerged as the top performers, while HSBC, JM, ICICI Prudential, and Nippon India Value Funds also delivered strong results.

For investors aiming for long-term wealth creation, allocating a portion of their portfolio to value funds can be a smart move. However, it is important to remain invested through market ups and downs, as the true potential of value investing is unlocked only with time.