Which value mutual funds lead in 1-, 3- and 5-year CAGR returns? Are they outperforming on alpha too?

Value mutual funds follow a strategy of investing in stocks that appear undervalued. But which schemes have delivered consistently strong returns across 1-, 3-, and 5-year periods, and how does their performance compare on another key metric? Here’s what the latest data shows.

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?

*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?

*Source: Value Research, Direct plans, CAGR as on 1 October 2026