ICICI Prudential manages India’s largest value fund, ICICI Prudential Value Discovery Fund with assets under management of nearly ₹16,000 crore. One set of market commentators build assumptions that in a low growth world, there lies little hope for value names to outperform and thus, value is good as dead. What is your take on this?
While value and growth are two different investment strategies but they complement each other. Both of these styles have their own set of strengths and weaknesses. Typically, from a market bottom, value tends to perform well; followed by growth outperformance. From a long term perspective, both the strategies tend to perform well as can be seen from historical data. While value may have phases of underperformance, it would be incorrect to make assumptions that write off this strategy. Historically, value has been one of the most rewarding investing styles for making extraordinary returns over extended period of time. For example in our case, ICICI Prudential Value Discovery Fund has posted 18.16% CAGR since its inception in 2004.
