However, the same fund in the previous three years has given higher returns than the Sensex and Nifty at 14 per cent against 12 per cent, and the five-year fund has returned 22 per cent against 16 per cent by the indices, according to the data collated by Value Research.In the case of PPFAS MF, it has given a return of 18 per cent for one-year duration against 21 per cent given by the Nifty. Again the same fund has given higher returns with three year duration has given 13 per cent against 12 per cent by the Nifty.When contacted ICICI Prudential executive director and chief investment officer S Naren defended his fund offering saying value are safer bets for retail investors as they are insulated from daily market volatilities.Quantum MF's value fund with an asset base of Rs 780 crore, has been underperforming for the past six months. "But in both cases, the common factor is to not to overplay. Given this, in a bull market there is difficulty in identifying new ideas," he said, adding "the fund has given 19.31 per cent CAGR return since inception with the NAV doubling in under four years. ""Value funds always suffer in a growth-oriented market as these funds don't do well in a rising market," Value Research chief executive Dhirendra Kumar said, adding "to benefit from value fund, one has to remain invested to a full market cycle."

Source: Economic Times August 06, 2017 10:06 UTC