Top Value Mutual Funds for 2025: Detailed Performance Review
As we move further into 2025, many investors are asking the
question: which mutual fund is best to invest in 2025? If you’re looking for
funds that follow a value-oriented strategy, there are a few schemes worth
considering. In this article we will explore four prominent options – Invesco
India Contra Fund, Bandhan Sterling Value Fund, Nippon India
Value Fund, and ICICI Prudential Value Discovery Fund. We’ll analyse
their strategies, performance, risk, and whether they might suit you in 2025.
Before going into the funds, a quick reminder: value funds
aim to buy good companies at relatively lower valuations, expecting the market
to recognise their worth over time. That means patience is needed, and higher
risk (especially in volatile markets).
1. Invesco India Contra Fund
The Invesco India Contra Fund follows an equity “contra” or
value-bias strategy. It is managed by Invesco Asset Management (India) Ltd.
According to recent facts: it had a 5-year CAGR of about 21.27% as of November
2025. Its portfolio is heavily equity-oriented (~99 %) with very limited debt
or cash, which implies higher risk.
What stands out:
- Strong
long-term returns relative to benchmark (e.g., over last 3-5 years).
- Large
fund size (AUM ~ Rs.19,000 crore as of Nov 2025) – good for liquidity.
- Expense
ratio ~1.64% for this category.
Things to keep in mind:
- High
equity exposure means significant volatility; value strategies may lag in
a sharp growth market.
- Exit
load applies if redeemed within 1 year.
- Being
a “contra” fund, it may underperform in strong momentum markets and may
require patience.
Suitability in 2025:
If you believe the market is entering a phase where undervalued stocks rally
and you’re comfortable with higher risk and a longer horizon (say 5+ years),
this may be a worthy option of the four.
2. Bandhan Sterling Value Fund
Next up is the Bandhan Sterling Value Fund, managed by
Bandhan Mutual Fund. This value fund was launched around March 2008 (Regular
Plan) and has delivered returns since launch of ~16.86 % (till April 2025)
according to Value Research. The fund invests mostly in domestic equities (~90
%+), with a mix across large, mid and small caps.
What stands out:
- Has
a long track record (over a decade) in the value space.
- Reasonable
size (AUM ~ Rs.9,900 crore as of Oct 2025) and expense ratio acceptable
for category.
- Managers
are named and have experience in value investing.
Things to keep in mind:
- Recent
1-year performance has been weak (for example, negative returns reported
in some sources). As a value fund, in a market dominated by growth stocks,
it may lag.
- Risk
level is “Very High” according to riskometer.
Suitability in 2025:
If you believe value stocks will outperform in 2025 and beyond (especially if
growth has run ahead of fundamentals), this fund could be interesting. But it
may require conviction and tolerance for near-term underperformance.
3. Nippon India Value Fund
The Nippon India Value Fund, from Nippon India Mutual Fund,
is another value-oriented equity scheme. It has tracked a 5-year CAGR of
~26.26% for direct plan (regular plan ~21.88%) as of end Oct 2025. The fund
invests about 95 % in equities, with ~46 % in large cap, ~15.5 % in mid cap,
small cap exposure ~6.5 %.
What stands out:
- Strong
5-year track record vs benchmark.
- A
clear value-strategy stated in its objectives.
- Relatively
moderate allocation across cap-sizes (large + mid + small) giving some
diversification.
Things to keep in mind:
- Expense
ratio ~1.82% per Value Research.
- Value
funds may underperform when growth stocks dominate the market.
- As
always, past performance is no guarantee of future returns.
Suitability in 2025:
If your view is that value stocks are ready for a comeback in India, and you
want a fund which has delivered in this style, Nippon India Value Fund is a
strong contender.
4. ICICI Prudential Value Discovery Fund
Finally we look at the ICICI Prudential Value Discovery
Fund, from ICICI Prudential Asset Management Company Ltd. This fund has a long
history (launched August 2004) and since inception has given a CAGR ~20.14% as
of November 2025. It invests ~93 % in equities, and its portfolio includes top
stocks like Reliance Industries, Infosys, HDFC Bank, ICICI Bank.
What stands out:
- Long
track record across market cycles (value discovery strategy).
- Large
AUM (Rs. ~57,900 crore as of Nov 2025) – offers good liquidity.
- Well-known
fund house which adds comfort.
Things to keep in mind:
- Risk
level: “Very High” as per Value Research.
- Universe
remains value-oriented so in a growth-led market might not top the charts
in short term.
- Expense
ratio ~1.49% (Regular plan) which is decent for this category.
Suitability in 2025:
If you are seeking a value fund with deep history, large scale and you’re willing to commit for medium-long term (5-10 years), this is a solid option.
So, which to choose in 2025?
There is no single “best” fund for everyone. Your choice
depends on your risk tolerance, time horizon, and belief about how markets will
behave in 2025 and beyond.
Here’s how I would summarise:
- If
you believe that value stocks will outperform and you have the patience,
any of these four are credible.
- If
you prefer a fund with longer history and large size → ICICI Prudential
Value Discovery Fund may lead.
- If
you prefer slightly more aggressive value-tilt and higher recent returns →
Nippon India Value Fund stands out.
- If
you are comfortable with high risk and a contra style portfolio → Invesco
India Contra Fund could be an option.
- If
you like a smaller size fund but value style and are okay with more
volatility → Bandhan Sterling Value Fund may fit.
In all cases make sure to check: fund’s expense ratio,
how long you plan to stay invested (preferably 5+ years), the exit load, and
how well you understand the “value” style and its risks.
Also remember that “value” doesn’t guarantee performance —
markets may reward growth or momentum for many years, and value funds may lag
in those periods.
Read also: Should Beginners in India Invest in Mutual Funds for the Long Term?
Common Public FAQs
Q1. What is a value mutual fund?
A value mutual fund invests in shares that appear undervalued relative to
fundamentals (such as earnings, assets or cash flows) with the expectation that
the market will recognise the value over time. They often buy companies that
may be out of favour.
Q2. Do value funds always outperform growth funds?
No. The performance depends on market cycles. In periods where growth stocks
dominate (e.g., fast-rising tech or momentum plays), value funds may lag. They
tend to shine when markets rotate into undervalued stocks.
Q3. What time horizon should I have if I invest in a value fund in 2025?
Ideally medium to long term — at least 5 years. Value plays often take time to
realise. If you have a shorter horizon (1-2 years), value funds may have more
risk of underperformance.
Q4. Should I pick one of the four funds listed only, or diversify?
It depends on your portfolio size and preference. You could pick one strong
fund and stay invested, or diversify across 2-3 value funds to spread risk. But
ensure you understand each fund’s style and you aren’t duplicating heavily.
Q5. What are the risks of value mutual funds?
The main risks include: undervalued stocks remaining undervalued or becoming
value traps, higher volatility, sector or stock specific risks, and the
possibility of underperforming for long stretches if growth stocks run.
Q6. How to choose between these four funds in 2025?
Check the fund’s: past performance (while remembering past isn’t future), expense ratio, consistency of management, portfolio composition (large/mid/small cap mix), exit load, and whether the value strategy aligns with your belief and time horizon.
