These value mutual funds delivered the highest returns in 5 years. Should you invest?
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- HSBC Value Fund posted the top five-year annualized return among value mutual funds at 17.97%, per AMFI data as of 8 July 2026.
- ICICI Prudential Value Fund and JM Value Fund followed with annualized returns of 17.07% and 16.13% respectively over the same five-year window.
- Aditya Birla Sun Life Value Fund and HDFC Value Fund also cleared the 15% annualized return threshold over five years.
- Roughly eight value mutual funds delivered over 15% annualized returns in the five-year period, with most high-performing direct plans landing in a 15-18% annual band.
- Preeti Zende of Apna Dhan Financial Services advised that value funds suit only long-horizon investors (10+ years), warning they may underperform growth funds for extended stretches before the thesis plays out.
- Sridharan Sundaram of Wallet Wealth LLP recommended a blended multi-cap approach, noting growth stocks dominated from 2020 to 2022 while value stocks have outperformed since 2022.
- Ajay Kumar Yadav of Wise Finserv framed value investing's edge as discipline around earnings, cash flows, balance-sheet quality, and price paid — not buying cheap stocks per se.
Why it matters: Investors weighing whether to chase the five-year value-fund leader face a real trade-off: the top fund's 17.97% annualized return looks compelling, but growth ran the table from 2020-2022 and value has led only since — so going all-in on one style means betting on which cycle you land in, which is why experts like Sundaram push a multi-cap blend.
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