Top Value Oriented Mutual Funds giving Huge Returns: Up to 88% return in just one year! This feat has been achieved by some special equity mutual fund schemes. These schemes that make their investors rich come under the category of value oriented mutual funds. According to the latest data, there are 13 schemes in this category whose one-year return has been 50% or more. We will tell you about these 13 schemes that give such tremendous returns later. But first let us understand what value oriented mutual funds are and what are their specialties?
How value oriented funds earn high returns
Value oriented mutual funds are also equity mutual funds. They are called value oriented funds because their main focus is on investing in those stocks whose current market price is much lower than their true value. Such undervalued stocks have a high probability of value unlocking in the future, i.e. a rise in prices, which benefits investors. Fund managers of value oriented funds try to generate high returns by following a similar value investing philosophy.
Value funds giving returns ranging from 50% to 88%
Following the investing philosophy of value investing mentioned above, there are 13 funds that have given 50 to 88 percent returns in the last 1 year. We are providing the names of all these 13 funds and their previous returns here. Whereas during the same period, the return of the benchmark index of value funds NIFTY 500 TRI has been 41.26% and the return of BSE 500 TRI has been 40.81%. That is, these 13 funds have given about 10% more return than their benchmark.
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Value oriented funds giving highest returns in 1 year
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Motilal Oswal BSE Enhanced Value ETF: Return in one year: 88.49%
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Motilal Oswal BSE Enhanced Value Index Dir : Return in one year : 86.71%
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UTI Nifty 500 Value 50 Index Dir: Return in one year: 85.43%
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Quant Value Dir : Return in one year : 74.07%
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JM Value Dir: Return in one year: 63.25%
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Nippon India Value Dir: Return in one year: 56.38%
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Kotak India EQ Contra Dir : Return in one year : 55.96%
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Tata Equity PE Dir : Return in one year : 55.62%
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Axis Value Dir : Return in one year : 54.13%
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Invesco India Contra Dir : Return in one year : 54.11%
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HSBC Value Dir: Return in one year: 54.06%
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ITI Value Dir: Return in one year: 53.16%
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ABSL Pure Value Dir : Return in one year : 51.03%
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There are names of some funds in this list which are also kept in the category of Contra Funds. But the philosophy of these funds is also actually value oriented, so they have been included here. All the return figures given above for value oriented mutual fund schemes are of their direct plans.
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For whom is value oriented fund right
Investment in any equity mutual fund including value oriented funds should always be done for the long term. Due to their special investment strategy, value oriented funds invest in those stocks which are currently undervalued and have the possibility of turn-around in the long term. Obviously, the full benefit of investment in such funds is likely to be obtained only by making long term investment. According to the riskometer, this scheme falls in the ‘very high risk’ category, so investors should decide to invest according to their risk taking capacity.
(Disclaimer: The purpose of this article is only to provide information, not to give investment advice. Market fluctuations have a direct impact on the returns of equity mutual funds. Their past performance cannot be considered a guarantee of giving similar returns in future. Take any investment decision only with the advice of your investment advisor.)
