A lump sum investment of Rs 10 lakh in ICICI Prudential Value Discovery Fund at the time of its inception could have grown to approx. Rs 3.1 crore till July 2023. The fund has completed 19 years since its inception on August 2004.

“A lump sum investment of Rs. 10 lakh at the time of inception (August 16, 2004), as of July 31, 2023, would be worth approximately Rs. 3.1 crore i.e. a CAGR of 20%. A similar investment in Nifty 50 would have yielded a CAGR of 15.6% at approximately Rs. 1.5 crore,” ICICI Prudential AMC said in a statement today (August 21). Here are key points you should know about this fund.

Largest Value Fund by AUM

According to the statement, ICICI Prudential Value Discovery Fund is the largest value fund in India by assets under management (AUM). The Scheme has an AUM of Rs 32,659.44 crore which accounts for nearly 30% of the total AUM in the value category.

Investment Philosophy

The ICICI Prudential Value Discovery Fund follows a value investment style by investing in a diversified portfolio of stocks that have attractive valuations but are quoting at a discount to their intrinsic value.

“The greatest of the investing gurus be it Warren Buffett, Seth Klarman, Joel Greenblatt etc. are all proponents of value investing as the way to build long-term wealth. We at ICICI Prudential AMC Ltd believe value as an investment style is here to stay as investors are increasingly becoming aware of what constitutes value and why it must be followed diligently. But the caveat here is that value can test one’s patience at times. We may have to wait for a long time for value to deliver on its promise,” said Nimesh Shah, MD & CEO of ICICI Prudential AMC, while speaking on the occasion of 19 years’ completion of the fund.

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“Through the journey of ICICI Prudential Value Discovery Fund, we have endeavoured to prove that value as a style works well in India as well. We are happy to note that the Scheme over the years has helped patient investors create long-term wealth,” he added.

S Naren, ED & CIO, ICICI Prudential AMC Ltd, said, “Globally as well as in the scheme, there have been patches of time when value investing has not done well. However, if an investor is ready to be patient, then value investing will deliver sizeable returns over the long term. This is because the thesis of value investing is about buying stocks that have attractive valuations but are quoting at a discount to their intrinsic value.”

“Given the approach, it is advisable that investors should consider investing through the SIP route for the long term, especially during times when the past return is very good. On the other hand, when the past returns are low, we recommend investors to consider lump sum investing,” he added.

SIP Returns

According to the statement, a monthly investment of Rs 10,000 via SIP in this scheme since inception would have grown to Rs 1.59 crore as of July 31, 2023 i.e. a CAGR of 17.87%. A similar investment in Nifty 50 TRI would have yielded a CAGR of 13.22%.

Fund Manager

The scheme is currently managed by Sankaran Naren and Dharmesh Kakkad. Both of them have been managing this fund since January 2021.

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Benchmark Index

The benchmark of this scheme has been revised from Nifty 500 Value 50 TRI to Nifty 500 TRI with effect from January 01, 2022.

Disclaimer: The above content is for informational purposes only, based on a press release issued by ICICI Prudential AMC. Mutual Fund investments are subject to market risks. Please consult your financial advisor before investing in this or any other scheme.