As market conditions continue to be shaped by global developments and intermittent bouts of volatility, value funds are gaining renewed attention as a stabilising force within equity portfolios. By focussing on fundamentally strong yet undervalued companies, these funds follow a disciplined investment approach that can help cushion downside risk while capturing long-term re-rating opportunities across market cycles.

The Mahindra Manulife Value Fund has emerged as one of the strong performers within the value equity category, delivering notable returns in its first year despite a volatile and uncertain market environment marked by geopolitical tensions and fluctuating global cues.

According to data from ICRA Analytics, the fund delivered a one-year compounded annualised return of 16.39% as of April 15, 2026, outperforming the category average of 9.35%. This places it among the top performers in the value fund segment over the period.

The Mahindra Manulife Value Fund was closely followed by DSP Value Fund, which generated 15.66%, and LIC MF Value Fund, which posted a return of 15.29%. Quant Value Fund also delivered a healthy 14.53%, slightly below its peers but still ahead of the broader category average.

During the same period, benchmark indices delivered relatively muted returns compared to value-oriented strategies. The BSE 500 TRI recorded a 1-year CAGR of 6.85%, while the Nifty 500 TRI posted a slightly higher return of 7.20%.

Since inception, the Mahindra Manulife Value Fund has generated a CAGR of 18.68%, reflecting consistent execution of its value-based investment philosophy.

Launched with the objective of long-term capital appreciation, the scheme follows a value investing approach, identifying stocks trading below their intrinsic worth. It maintains a diversified portfolio of equity and equity-related instruments, including Indian and select foreign equities, along with limited exposure to debt securities.

As of April 17, 2026, the fund reported a net asset value (NAV) of ₹12.12 and assets under management (AUM) of ₹669.80 crore. The portfolio remains heavily equity-oriented, with around 96% allocation to equities, while the balance is held in cash and cash equivalents, providing liquidity and tactical flexibility.

The steady performance of value funds comes against the backdrop of a challenging global macroeconomic environment. This year, markets have witnessed heightened volatility amid geopolitical tensions in West Asia, particularly involving the US and Iran, which have disrupted energy flows and impacted global risk sentiment. Rising crude oil prices, currency fluctuations, and tighter financial conditions have further contributed to periodic risk aversion among investors.

Indian equity markets have reflected these global headwinds, with benchmark indices remaining volatile. The BSE Sensex and NSE Nifty are down nearly 7% on a year-to-date (YTD) basis.

Against this backdrop, value-oriented strategies have gained traction as investors increasingly seek relatively stable opportunities in companies with strong fundamentals, consistent cash flows, and reasonable valuations.

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