Top value oriented SIP mutual funds: Rs 20,000 monthly SIP investment in top fund has grown by nearly 2.5X in 5 years

Value Oriented Mutual Funds: A world champion athlete of the present time might have been an ordinary one in their childhood. Its sheer years of hard work, dedication, scientific training, and a customised diet that make them stand apart from the rest of the lot. Their coaches practically invest in the future of an undervalued athlete. It's the same strategy in a value oriented mutual fund. These funds invest in undervalued companies whose intrinsic value is much higher than their current market price. Fund managers do fundamental analysis of undervalued companies and invest the fund's money in them.

The simple logic that works behind them is that these stocks are undervalued, and the market may take time to realise their potential.

Once the market realises their true worth, the stock of these companies will rise and generate huge returns.

Since these stocks may take a long time in capital appreciation, these funds are considered good for long-term investors. 

The value-oriented mutual fund category has grown by 51.53 per cent in the one year, 23.47 per cent in the three years and 21.87 per cent in the five-year period (As per Value Research data. 
Many of the value oriented funds have performed well over the 5 years in terms of SIP returns (XIRR). Here is a list of the top 5 of them. 

JM Value Fund - Direct Plan

The fund at No. 1 has given 36.70 annualised SIP returns (XIRR) in the five-year period.

The fund has assets under management (AUM) of Rs 734 crore, while it has a net asset value (NAV) of Rs 116.9326.

Benchmarked against BSE 500 TRI, the fund has given a 19.79 per cent return since its inception in January 2013.

The minimum SIP investment in the fund is Rs 100, while the minimum lump sum investment is Rs 1,000.

It has an expense ratio of 1.00 per cent. The fund has 97.75 per cent of its investments in equities with 18.24 per cent in large caps, 34.95 per cent in mid caps and 20.18 per cent.

In a portfolio of 59 stocks, the fund has ICICI Bank, Mahindra & Mahindra, Hindalco Industries, and HDFC Bank as its main stocks.

A monthly SIP of Rs 20,000 in the fund in the five-year period has given a total of Rs 29,31,437. 
   

HSBC Value Fund - Direct Plan

The fund has given 34.09 per cent annulised SIP returns in the five-year period. It has an AUM of Rs 12,373 crore, while its NAV is worth Rs 119.9368.

The fund has an expense ratio of 0.76 per cent. Benchmarked against NIFTY 500 TRI, the fund has given a 21.82 per cent return since its inception.

The minimum SIP investment in the fund is Rs 1,000, while the minimum lump sum investment in the fund is Rs 5,000.

The fund has 98.85 per cent of its investments in equity with 12.35 per cent in large caps and 41.07 per cent in mid-cap stocks.

It has 68 stocks in its portfolio with NTPC, Jindal Stainless, ICICI Bank, SBI, and Mahindra & Mahindra as the leading ones. 

A Rs 20,000 monthly SIP in the fund has given Rs 27,59,197 in the five-year period. 

Templeton India Value Fund - Direct Plan

The fund has given 34.04 per cent annual SIP returns in the five-year time frame.

The fund's AUM is Rs 1,978 crore, and the NAV price is Rs 810.5784.

The fund has an expense ratio of 0.87 per cent. Its minimum SIP and lump sum investments are Rs 500 and Rs 5,000, respectively.

Benchmarked against NIFTY 500 TRI, the fund has had a 17.56 per cent return since its launch in January 2013.

The open ended fund has 94.24 per cent of its investments in equity with 15.14 per cent of them in large caps and 19.87 per cent in mid-cap stocks.

In a bouquet of 45 stocks, the fund has HDFC Bank, Reliance Industries Limited, ICICI Bank, and SBI as its main stocks. 

A Rs 20,000 monthly SIP in the fund has given a total of Rs 27,55,786.

Bandhan Sterling Value Fund - Direct Plan

The fund has given an annual SIP return of 33.64 per cent in the five years.

The fund has an AUM of Rs 9,019 crore, while its NAV size is Rs 166.9040.

The fund has an expense ratio of 0.69 per cent. Benchmarked against BSE 500 TRI, the fund has given a 19.24 per cent return since its launch in January 2013.

The minimum SIP investment in the fund is Rs 100, while the minimum lump sum investment in the fund is Rs 1,000.

The fund has 95.04 per cent of its investment in equity with 32.59 per cent in large caps and 15.99 per cent in mid caps.

In a portfolio of 64 stocks, the fund has HDFC Bank, Axis Bank, RIL, ICICI Bank, and Jindal Steel as its main investments. 

A Rs 20,000 monthly SIP in the fund has given a total of Rs 27,30,507.

Nippon India Value Fund - Direct Plan

The fund at No. 5 spot has given annualised SIP returns of 32.34 per cent in the five years.

The fund has an AUM of Rs 7,652 crore, while the size of its NAV is Rs 238.7870.

The fund has an expense ratio of 1.14 per cent. benchmarked against NIFTY 500 TRI, the fund has given an 18.28 per cent annual return since its inception in January 2013.

The fund's minimum SIP investment is Rs 100, while its minimum lump sum investment is Rs 500.

The fund from Nippon India Mutual Fund house has 97.33 per cent of its investments in equity with 17.94 per cent in large caps and 29.55 per cent in mid caps.

In a portfolio of 74 stocks, the fund has its main investments in HDFC Bank, ICICI Bank, NTPC, ONGC, and Infosys.

A Rs 20,000 monthly SIP investment in the fund has turned into Rs 26,48,417 in the five years.