ICICI Prudential Value Fund turns ₹10 lakh into ₹4.85 cr: Is it worth it?

Value investing may not always be fashionable, but the numbers are hard to argue with. A one-time investment of ₹10 lakh in ICICI Prudential Value Fund at inception (16 August 2004) would be worth ₹4.85 crore as of 31 October 2025, translating into a 20.1% CAGR. In comparison, the same amount invested in the Nifty 50 TRI would have grown to just ₹2.1 crore over the same period — less than half the wealth created by the fund.   The fund focuses on fundamentally sound companies with durable business models, improving financials and credible management teams that are temporarily mispriced. 

DataSource: MFI Explorer. MFI Explorerisa toolprovided by ICRA Online Ltd.

 

The fund’s SIP journey is equally compelling. A ₹10,000 monthly SIP, totalling ₹25.5 lakh, would today be valued at ₹2.4 crore, delivering 18.2% XIRR. A similar SIP in the benchmark would have resulted in ₹1.2 crore, highlighting the sustained alpha generated by the fund.  

Returns are calculated by XIRR approach assuming investment of Rs. 10,000 per month on 10th calendar date every month.

 

Performance in the recent past also reinforces this track record: over the last one year, the fund has beaten its benchmark by 2 percentage points, and over three years, the excess return stands at 4.8 percentage points, placing it firmly among the top performers in the value category. 

The returns are calculated by XIRR approach assuming SIP investment of Rs 10,000/- on the 1st working day of every month in the Growth Option of the Scheme. XIRR helps in calculating return on investments given an initial and final value and a series

 

Should Investors Consider Value Now?

 

With global equity indices hovering near all-time highs and domestic valuations remaining elevated, ICICI Prudential’s ED & CIO Sankaran Naren believes investors face two rational choices: stick to asset allocation or embrace value investing.

 

Naren, one of India’s most respected value investors, argues that even in strong markets, pockets of underperformance inevitably emerge. These pockets — sectors temporarily ignored, companies with near-term challenges, or areas where institutional ownership is low — create ideal entry points for patient investors. According to Naren, the quality theme currently offers relative value, with several high-quality names available at more reasonable valuations than the broader market.

 

The fund’s philosophy, explained through the valuation-led decision framework on page 6, hinges on identifying companies with:

 

• Financial strength
• Durable businesses
• Strong management behaviour
• and backing high-conviction ideas with meaningful allocations. 

 

Portfolio Snapshot: Large-Cap Heavy, Benchmark-Agnostic

 

As of 31 October 2025, ICICI Prudential Value Fund maintains:

 

• 87% allocation to large caps
• Remaining spread across mid and small caps
• A benchmark-agnostic sector allocation strategy, allowing flexibility across market cycles

 

Current sector positioning

 

The fund is overweight in:

 

• Software
• Pharma & healthcare
• Banks & financials
• Oil & petroleum
• Consumer non-durables

 

And underweight in:

 

• Cement
• Internet
• Retail
• Metals & mining
• Industrial products & capital goods

 

Stock additions include TML Commercial Vehicles, Canara HSBC Life Insurance, LG Electronics, and Bandhan Bank; and exits including Hindalco, Alkem, UPL, Phoenix Mills, and Voltas. 

 

Top holdings

 

The fund’s core positions remain anchored to blue-chip names:

 

ICICI Bank (7.9%)

 

Reliance Industries (7.5%)

 

Infosys (7.3%)

 

HDFC Bank (6.7%)

 

TCS (4.7%)

 

Sun Pharma (4.5%)

 

Banks dominate the sectoral exposure at 23.5%, followed by IT at 13.1% and pharma at 9.3%. 

Data as on October 31, 2025.The

 

Why the Portfolio Looks the Way It Does: A Sector Deep-Dive

Pharmaceuticals: US price erosion easing

 

Improving conditions for Indian pharma companies: ANDA approvals rising, price erosion easing, and declining cost pressures. Cash-rich balance sheets may trigger consolidation and M&A opportunities. 

 

Banks: Reasonably valued with improving fundamentals

 

RBI measures, better credit growth, and stronger asset quality have improved the risk-reward balance for banks.

 

IT: Temporarily under-owned, long-term visibility intact

 

While sentiment remains weak, deal wins remain strong, and valuations more reasonable — aligning with Naren’s view that quality and under-owned sectors offer compelling value.

 

What Makes This Fund Stand Out?

 

Three characteristics define ICICI Prudential’s Value Fund:

 

1. Contrarian approach

 

The fund often adds to sectors during phases of underperformance — as highlighted in its overweight on software and pharma.

 

2. Flexibility across market caps

 

The fund is not constrained by large-cap or mid-cap labels and can move dynamically based on valuations.

 

3. Benchmark-agnostic

 

Sector weights are not modelled after any index — an approach that has enabled persistent alpha generation since inception.

 

The historical wealth creation charts on pages 12 and 13 make this differentiation visually clear: the fund’s trajectory consistently exceeds the benchmark across long cycles. 

 

If markets remain volatile and valuations elevated, Naren’s guidance is straightforward:

either stick to asset allocation rules or look at value strategies that exploit mispricing.

 

• Long-term wealth creation
• Exposure to quality businesses at reasonable valuations
• A stabilising fund in periods of market froth
• The risk-o-meter  positions the fund as Very High Risk — consistent with all equity value strategies — but its track record demonstrates its ability to navigate both upcycles and corrections. 

 

In a market crowded with momentum trades, thematic bets and short-lived narratives, ICICI Prudential Value Fund continues to demonstrate the quiet power of value investing.