Which value mutual funds lead in 1-, 3- and 5-year CAGR returns? Are they outperforming on alpha too?
Value mutual funds invest at least 65% of their assets in equities following a value-investing strategy. Under this approach, fund managers look for stocks that appear undervalued relative to their fundamentals, with the expectation that their valuations may improve over time.
According to AMFI August 2026 data, there are 23 value funds in the category. While one-year returns can highlight recent performance, investors looking at equity mutual funds may also want to check whether a fund has remained among the better performers over longer periods.
So, which value funds are consistently leading across one, three, and five years? And does their performance also show up in alpha?
Which value funds are leading in 1-year returns?
| Value funds | 1-year return |
| LIC MF Value Fund | 19.65% |
| Quant Value Fund | 11.71% |
| ABSL Value Fund | 8.68% |
| Mahindra Manulife Value Fund | 7.33% |
| Axis Value Fund | 5.31% |
*Source: Value Research, Direct plans, Returns as on 1 October 2026
LIC MF Value Fund leads the category on a one-year basis, with a 19.65% return, followed by Quant Value Fund at 11.71%. ABSL Value Fund, Mahindra Manulife Value Fund and Axis Value Fund complete the top five.
Which value funds are leading in 3-year returns?
| Value funds | 3-year return |
| Quant Value Fund | 19.26% |
| LIC MF Value Fund | 16.78% |
| Axis Value Fund | 16.56% |
| DSP Value Fund | 15.36% |
| HDFC Value Fund | 14.72% |
*Source: Value Research, Direct plans, CAGR as on 1 October 2026
Quant Value Fund leads the three-year return chart at 19.26%, followed by LIC MF Value Fund and Axis Value Fund. DSP Value Fund and HDFC Value Fund also feature among the top five.
Which value funds are leading in 5-year returns?
| Value funds | 5-year return |
| Axis Value Fund | 15.37% |
| HSBC Value Fund | 14.87% |
| JM Value Fund | 14.15% |
| ABSL Value Fund | 13.42% |
| HDFC Value Fund | 13.12% |
*Source: Value Research, Direct plans, CAGR as on 1 October 2026
Axis Value Fund takes the top spot over five years, with a 15.37% return. HSBC Value Fund and JM Value Fund follow, while ABSL Value Fund and HDFC Value Fund also make the top five.
Which value fund features across all three periods?
Axis Value Fund is the only fund that appears in the top five across all three periods. This makes its presence notable when looking specifically at consistency across the short and long term.
However, return rankings alone do not show whether a fund has generated performance over and above what its benchmark delivered.
Which value funds are leading in alpha?
Alpha measures the excess return generated by a fund relative to its benchmark, after accounting for risk.
| Value funds | Alpha (%) |
| Quant Value Fund | 9.39 |
| LIC MF Value Fund | 7.36 |
| Axis Value Fund | 7.07 |
| DSP Value Fund | 6.69 |
| HDFC Value Fund | 5.27 |
*Source: Value Research, Direct plans, Alpha as on 30 September 2026
The category average alpha for this category is 2.94. All five funds in the above table have generated alpha above the category average.
Axis Value Fund stands out for a reason: it is the only value fund to feature in the top five across all three return periods—1, 3, and 5 years.
Quant Value Fund and LIC MF Value Fund feature in the top five over both 1- and 3-year returns. HDFC Value Fund appears in the top five over 3 and 5 years, while DSP Value Fund features only in the 3-year ranking.
For investors comparing value funds, the data shows why the latest return alone may not tell the full story. Funds that have delivered consistent returns across multiple time periods and generated high alpha are considered to be better.
Disclaimer: This is purely for educational/informational purposes and should not be taken as any sort of investment advice. Always consult a SEBI-registered advisor before making any investment decisions.
