ICICI Prudential Value Discovery Fund delivers 20.03 per cent CAGR
ICICI Prudential Value Discovery Fund is one of the oldest funds launched even before its benchmark. This fund was launched back on August 16, 2004. It has completed 17 years on August 16, 2021. This fund has delivered 20.03 per cent CAGR over 17 years by outperforming the index, which delivered 15.91 per cent CAGR since inception. The asset under management (AUM) of this scheme is Rs 21,195 crore as of July 31, 2021, which has emerged as the largest value category scheme.
The scheme category of the fund is Equity: Value-oriented. The scheme follows the value investment style by investing in the diversified stocks of the companies that have attractive valuations but are quoting at discounted value than their intrinsic value. The benchmark of the scheme has been revised from S&P BSE 500 TRI to Nifty 500 Value 50 TRI with effect from February 17, 2020.
If an investor had invested Rs 1 lakh at inception, it would have been 22.13 lakh. For 1-year, 3-year, 5-year, and since inception returns, refer to the following table:
On the occasion of the completion of 17 years of the scheme, Nimesh Shah, MD & CEO of ICICI Prudential AMC said, “We are happy that through our product offering, we have been able to contribute to favourable investment outcomes of wealth creation for our investors over a long-term.”
While S Naren, ED & CIO, ICICI Prudential AMC added, “Global experience has always been that value as a strategy will not work all the time but tend to deliver sizeable returns in the long run. Until September 2020, the value was out of favour, which was also the case even during 1988-89 and 2007-2008. In value style, we have seen that investments made in 1999 did very well because, at that point in time, markets were largely focussed on technology stocks. Similar was the case in 2007 when infrastructure was in focus. Hence, we believe that value investing at a time when the market is elevated tends to do well as value focusses on investing in sectors that are out of favour but offer long-term potential”.
SIP performance:
