This ICICI Prudential mutual fund turned Rs 10 lakh into Rs 4.56 crore in 20 years; here’s how

ICICI Prudential Value Discovery, which recently completed 20 years, has delivered robust returns to investors since its inception. Data shows that a lump sum investment of Rs 10 lakh in the fund at the time of inception (August 16, 2004) would have turned to Rs 4.56 crore as of July 31, 2024, indicating a CAGR of 21.09%. A similar investment in Nifty50 would have yielded a CAGR of 16.2% and would have turned to Rs 2 crore.

In terms of SIP performance, a monthly investment of Rs 10,000 since inception, which would amount to a total investment of Rs 24 lakh, which has grown to Rs 2.30 crore as of July 31, 2024, at a CAGR of 19.41%. A similar investment in Nifty50 TRI would have yielded a CAGR of 14.21%.

The scheme follows a value investment style, investing in a diversified portfolio of stocks that have attractive valuations but are trading below their intrinsic values, according to ICICI Prudential MF. The AUM of the fund stood at Rs 48,806 crore as of July 31, 2024.

S Naren, ED & CIO, ICICI Prudential AMC, said, “When ICICI Prudential Mutual Fund launched its Value Discovery Fund in 2004, there were doubts about whether value investing could thrive in a growth market like India. However, our conviction was rooted in the belief that value investing, which had proven successful in other growth economies like the USA, would find its place here as well.”

He added that over the past two decades, the performance of ICICI Prudential Value Discovery Fund has demonstrated that value investing can indeed work in a growth market like India. While there have been phases of underperformance—such as between May 2006 to February 2009, and again from 2016 to 2018—the long-term results underscore the enduring strength of value investing. “We remain confident that, despite these intermittent phases, the long-term prospects of value investing are strong,” Naren said.