Earnings recovery can revive value funds, invest with 5-year horizon

Allocation to these funds is essential for style diversity within portfolio

Value funds delivered strong returns in 2023 (up 35.2 per cent) and 2024 (20.1) per cent. However, they have had a turbulent 2025, with a category average loss of 2.8 per cent over the previous year. Despite this, investors remain optimistic, pouring in Rs 1,470 crore in July 2025. As many as 38 schemes managed assets worth Rs 2.04 trillion (as on July 31), according to data from the Association of Mutual Funds in India.

 

“Value funds had a good run over three to four years as the economic recovery played out post-Covid. Some cyclical adjustment may have played out