Mumbai: Value mutual fund inflow in India surged to Rs 22,757 crore in 2024. This is nearly double the amount seen in 2023. The impressive returns generated by the segment influenced investors. On average, value mutual funds delivered returns of over 21 per cent in 2024, with a nearly 20 per cent return over the past three years.
According to the Association of Mutual Funds in India (AMFI), the total amount into value mutual funds reached Rs 22,757 crore in 2024, a significant increase from Rs 11,927 crore in 2023. This influx of capital contributed to a 39 per cent rise in assets under management (AUM), which surged to Rs 1.88 lakh crore by December 2024, up from Rs 1.33 lakh crore in 2023.
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Several prominent value funds, such as UTI Value Fund, Axis Value Fund, Quantum Long Term Equity Value Fund and ICICI Prudential Value Discovery Fund are available for investing. These funds have given good returns in the last year. The sectors that fueled the value fund rally in 2023 and 2024, including metals, real estate, construction, capital goods, PSUs, and manufacturing.
This growing interest in value funds can also be attributed to their strong historical performance, as seen in indices like the Nifty 500 Value 50 Index, which recorded returns of 20 per cent in 2024, 62 per cent in 2023, 23 per cent in 2022, and 54 per cent in 2021.
Value stocks, typically undervalued at the time of purchase but with strong fundamentals and growth potential, are often contrasted with growth stocks, which focus on companies with significant future growth prospects.
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