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ICICI Prudential Value Discovery Fund, one of the largest value fund, has accumulated ₹48,806 crore of AUM in 20 years of operations.
A lumpsum investment of ₹10 lakh at the time of inception on August 16, 2004 would be worth about ₹4.56 crore delivering a CAGR of 21 per cent. A similar investment in Nifty 50 would have yielded a CAGR of 16 per cent at about ₹2 crore.
Nimesh Shah, MD & CEO, ICICI Prudential AMC, said it is important to recognise that value investing requires patience, as it can take time for the full benefits to materialise.
Erasing the doubts
S Naren, ED & CIO, ICICI Prudential AMC, said when the fund was launched there were doubts about whether value investing could thrive in a growth market like India.
However, he said the fund had the conviction in value investing, which had proven successful in other growth economies such as the US.
While there have been phases of underperformance between May 2006 to February 2009, and again from 2016 to 2018 — the long-term results underscore the enduring strength of value investing, he added.
A monthly SIP of ₹10,000 via SIP since the inception would have led to an investment of ₹24 lakh and grown to ₹2.30 crore as of July-end, growing at a CAGR of 19 per cent. A similar investment in Nifty 50 TRI would have yielded a CAGR of 14 per cent.
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