The largest value fund in India, ICICI Prudential Value Discovery Fund, by Closing Assets Under Management (AUM), has successfully completed 20 years. The Scheme has a Closing AUM of ₹ 48,805.97 crores which accounts for nearly 25.9% of the total AUM in the value category. This indicates significant investor trust of value investors in the scheme. Data as on July 31, 2024. (Source: Value Research)
The scheme follows a value investment style by investing in a diversified portfolio of stocks that have attractive valuations but are trading less than their intrinsic values.
A lump sum investment of ₹10 lakh at the time of inception (August 16, 2004), as of July 31, 2024, would be worth approximately ₹4.56 crore i.e. a CAGR of 21.09%. A similar investment in Nifty 50 would have yielded a CAGR of 16.2% at approximately ₹2 crore.
Speaking on the occasion of 20 years’ completion, Nimesh Shah, MD & CEO of ICICI Prudential AMC Ltd says, “It’s important to recognize that value investing requires patience, as it can take time for the full benefits to materialize. The journey of the ICICI Prudential Value Discovery Fund has demonstrated that the value investing approach is effective in the Indian market as well. We take pride in the fact that the Scheme has consistently helped patient investors achieve long-term wealth.”
S Naren, ED & CIO, ICICI Prudential AMC Ltd, remarked and shared his thoughts “When ICICI Prudential Mutual Fund launched its Value Discovery Fund in 2004, there were doubts about whether value investing could thrive in a growth market like India. However, our conviction was rooted in the belief that value investing, which had proven successful in other growth economies like the USA, would find its place here as well.”
He further adds “Over the past two decades, the performance of ICICI Prudential Value Discovery Fund has demonstrated that value investing can indeed work in a growth market like India. While there have been phases of underperformance—such as between May 2006 to February 2009, and again from 2016 to 2018—the long-term results underscore the enduring strength of value investing. We remain confident that, despite these intermittent phases, the long-term prospects of Value Investing are strong.
We believe that the ICICI Prudential Value Discovery Fund is a good investment option for long-term investors in India, particularly through the Systematic Investment Plan (SIP) route. Furthermore, during periods of underperformance, we see opportunities for aggressive long-term investments through lump sum contributions. The journey of value investing in India is one of patience and conviction, and we are confident that the future will continue to reflect this.”
With value investing being suited for long-term investing, SIP emerges as a good investment pathway. In terms of SIP performance, a monthly investment of ₹10,000 via SIP since the inception, which would amount to a total investment of ₹24 lakh, would have grown to ₹2.30 crore as of July 31, 2024 i.e. a CAGR of 19.41%. A similar investment in Nifty 50 TRI would have yielded a CAGR of 14.21%.
Data as on July 31, 2024.The returns are calculated by XIRR approach assuming investment of Rs 10,000/- on the 1st working day of every month. XIRR helps in calculating return on investments given an initial and final value and a series of cash inflows and outflows with the correct allowance for the time impact of the transactions. Past performance may or may not be sustained in future. *Inception date is 16 Aug 2004. **Scheme benchmark is Nifty 500 TRI. The performance of the scheme is benchmarked to the Total Return variant of the Index. The investment value shown above would have varied based on the amount of SIP, the investment period of the investors and continuity of SIP. The returns shown are not indicating/assuring in any manner and is not an indicator of future returns. ICICI Prudential Mutual Fund does not provide guaranteed returns. Past performance may or may not sustain in the future.
For further details, please contact:
Adil Bakhshi, Principal – PR & Corporate Communication
Email: adil_bakhshi@icicipruamc.com
Phone: 022-66470274
Disclaimer & Riskometer
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
Notes:
- Different plans shall have different expense structure. The performance details provided herein are of ICICI Prudential Value Discovery Fund.
- The scheme is currently managed by Sankaran Naren and Dharmesh Kakkad. Mr. Sankaran Naren has been managing this fund since Jan 2021. Total Schemes managed by the Fund Manager is 14 (14 are jointly managed).
Mr. Dharmesh Kakkad has been managing this fund since Jan 2021. Total Schemes managed by the Fund Manager is 10 (9 are jointly managed). Refer annexure from page no. 109 for performance of other schemes currently managed by Sankaran Naren and Dharmesh Kakkad. https://www.archive.icicipruamc.com/docs/default-source/documents/factsheet-and-portfolio/fund-factsheet-for-july-2024.pdf?sfvrsn=a89d19d9_4
- Date of inception:16-Aug-04.
- Past performance may or may not be sustained in future and the same may not necessarily provide the basis for comparison with other investment.
- Load is not considered for computation of returns.
- In case, the start/end date of the concerned period is a non-business date (NBD), the NAV of the previous date is considered for computation of returns. The NAV per unit shown in the table is as on the start date of the said period
- The benchmark of this scheme has been revised from Nifty 500 Value 50 TRI to Nifty 500 TRI w.e.f. January 01, 2022.
- As the scheme was launched before the launch of the benchmark index, benchmark index figures since inception or the required period are not available.
- For benchmark performance, values of earlier benchmark (Nifty 500 Value 50 TRI) has been used till 31st Dec 2021 and revised benchmark (Nifty 500 TRI) values have been considered thereafter.
ICICI Prudential Value Discovery Fund
(An open ended equity scheme following a value investment strategy)
Please note that the Risk-o-meter(s) specified above will be evaluated and updated on a monthly basis. The above risk-o-meters are as on July 31, 2024. Please refer to https://www.icicipruamc.com/news-and-updates/all-news for more details.
The portfolio of the scheme is subject to changes within the provisions of the Scheme Information Document of the scheme. Please refer to the SID for investment pattern, strategy and risk factors.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
Disclaimer: The information provided in this press release has been prepared by ICICI Prudential Mutual Fund and is published on the Outlook Money website for informational purposes only. Outlook Money does not endorse, guarantee, or take responsibility for the accuracy, completeness, or reliability of the information presented herein. Readers are advised to read the offer document and consult with their financial advisor before making any investment decisions. Mutual fund investments are subject to market risks; please read all related documents carefully before investing.