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Pure Value

ICICI Prudential Discovery is a 5-star fund that has been doing well. Stay invested in it for the long run…

I have been investing in ICICI Prudential Discovery fund for the last two years. Should I continue or switch to some other scheme?
- Senthilnathan Mariappan

ICICI Prudential Discovery is one of the most popular and “pure” value funds in the Indian market. It is a 5-star rated fund that falls in the ‘Equity: Mid & Small Cap’ category. The fund manager looks for stocks with attractive valuations in relation to earnings or book value (BV). To benefit from such a fund, one needs to stay tight during times when it underperforms. When investing in value stocks, it could take a while for the market to recognise the value of those businesses. Hence in 2007 when growth stocks were ruling the roost, this fund languished in comparison to its peers. In 2009, though, it trounced the competition. Over the long run, investors are well rewarded. Its three- and five-year trailing returns are way ahead of the category average and the Sensex.

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