Synopsis: Value-oriented mutual funds invest in fundamentally strong companies available at attractive valuations. This article lists the top five value-oriented mutual funds based on their 3-year annualised returns in 2026, along with their key performance metrics.
Value-oriented mutual funds mainly focus on investing in companies whose shares are trading below their intrinsic value despite their strong fundamental characteristics. Fund managers look for companies with strong financials, healthy cash flows, and sustainable competitive advantages that are available at attractive valuations, with the expectation that the market may eventually recognize their true worth. In contrast to growth-oriented mutual funds, which consider earnings growth opportunities of firms, value-oriented mutual funds emphasize reasonable valuation of quality businesses. Although value investing may underperform during momentum-driven market phases, it has historically rewarded patient long-term investors.
Top 5 Value-Oriented Mutual Funds (3-Year Returns)
1. Quant Value Fund
- NAV: ₹24.99
- AUM: ₹1,859.34 Cr
- Expense Ratio: 0.89%
- Exit Load: 1% (within 15 days)
- Performance Snapshot
- 3-Year CAGR: 25.2%
- 3-Year Absolute Return: 97.3%
2. HSBC Value Fund
- NAV: ₹129.25
- AUM: ₹14,547.71 Cr
- Expense Ratio: 0.91%
- Exit Load: 1% (within 1 year)
- Performance Snapshot
- 3-Year CAGR: 19.9%
- 3-Year Absolute Return: 74.5%
3. Axis Value Fund
- NAV: ₹20.91
- AUM: ₹1,586.71 Cr
- Expense Ratio: 1.01%
- Exit Load: 1% (within 12 Months)
- Performance Snapshot
- 3-Year CAGR: 19.7%
- 3-Year Absolute Return: 72.1%
Also read: 5 Best-Performing Nifty Next 50 Index Funds in India Based on 3-Year Returns in 2026
4. DSP Value Fund
- NAV: ₹24.70
- AUM: ₹1,824.06 Cr
- Expense Ratio: 1.69%
- Exit Load: 1% (within 12 Months)
- Performance Snapshot
- 3-Year CAGR: 18.8%
- 3-Year Absolute Return: 67.7%
5. Aditya Birla Sun Life Value Fund
- NAV: ₹153.66
- AUM: ₹6,529.52 Cr
- Expense Ratio: 1.27%
- Exit Load: 1% (within 90 days)
- Performance Snapshot
- 3-Year CAGR: 18.2%
- 3-Year Absolute Return: 66.9%
Note: NAV, AUM, expense ratio and exit load data are sourced from Groww. Data as of 6th July 2026.
Key Takeaways
- Quant Value Fund emerged as the top performer with a 3-year annualised return of 25.2%.
- HSBC Value Fund manages the largest AUM among the funds compared and has delivered a 3-year annualised return of 19.9%.
- The five funds differ in terms of fund size, expense ratio, and investment approach, allowing investors to choose based on their preferences.
- Value-oriented mutual funds are designed for long-term wealth creation and may experience short-term underperformance during momentum-driven markets.
- Before investing, compare historical performance, portfolio quality, expense ratio, fund manager’s track record, and your investment horizon rather than relying on returns alone.
Who Should Invest?
Value-oriented mutual funds are generally suitable for investors who have an investment horizon of five years or longer, seeking to create wealth by investing in fundamentally sound stocks that trade at reasonable valuations. Value-oriented funds can be preferred by those who have the risk-taking ability to bear the volatility of the market and wish to diversify their equity portfolio with value investing, along with making investments via SIP or lump sum.
Disclaimer: The information provided in this article is for educational purposes only and should not be construed as financial advice or investment recommendation. Returns mentioned are based on historical performance and may not be sustained in the future. Mutual fund investments are subject to market risks, including potential loss of capital. Investors are advised to assess their risk appetite and financial goals and to consult a certified financial advisor before investing.
