HDFC Value Fund: Long track record of wealth creation and outperformance

HDFC Value Fund has a track record of 30+ years. If you invested Rs 10,000 in the scheme every month since inception, you could have accumulated a corpus of Rs 12.14 crores as on 31^st August 2026 with a cumulative investment of 39.1 lakhs (see the chart below). The fund managers of this scheme follow the value style of investing. In value style of investing, fund managers seek to identify and invest in stocks that are trading at discounts to their intrinsic valuation or trading below their historical valuation multiples (e.g., PE, PB etc). In this article we will review HDFC Value Fund.

Source: Advisorkhoj Research, as on 31^st August 2026

Current market context

The market has been extremely volatile for last few weeks. The Nifty has fallen for 7 straight weeks breaking the sentimental 22,000 level. Geo-political uncertainties and surging crude oil prices (more than $100 per barrel, source: Bloomberg) have raised inflationary concerns. Rising global bond yields (10 year US Treasury bond yields up 50 bps in the last 1 month, source: Bloomberg) have led to FIIs pulling out money from Indian market (see the chart below).

Source: NSDL, Advisorkhoj Research, as on 29^th September 2026.

In volatile market conditions, value stocks have the potential to outperform the broad market (see the chart below). Since value stocks trade at discounts to their intrinsic values, they have a margin of safety which can limit downside risks in market corrections. These stocks also have the potential to recover faster because they can attract investors due to more reasonable valuations.

Source: NSE, Advisorkhoj Research, as on 29^th September 2026.

HDFC Value Fund - Outperformed the benchmark index

The chart below shows the 5 year rolling returns of the fund (rolled daily) versus the benchmark index, Nifty 500 TRI over the last 20 years. You can see that except a brief period, the fund consistently outperformed the benchmark index across all market conditions - bull markets, bear markets, range-bound markets etc.

Source: Advisorkhoj Research, as on 29^th September 2026.

The table below shows the average, median, maximum and minimum rolling returns of the fund versus the benchmark index for different investment tenures over the last 20 years. You can see that, across all investment tenures, the average and median rolling returns of the fund was higher than that of the benchmark index.

Source: Advisorkhoj Research, as on 29^th September 2026. Fund: HDFC Value Fund. Benchmark: Nifty 500 TRI

The fund had higher percentage instances of 12%+ CAGR instance across different investment tenures compared to the benchmark index - showing higher performance consistency relative the benchmark.

Source: Advisorkhoj Research, as on 29^th September 2026. Fund: HDFC Value Fund. Benchmark: Nifty 500 TRI

Outperformed the category

The fund had higher percentage instances of 12%+ CAGR instance across different investment tenures compared to the benchmark index. At the same the fund had lesser percentage instances of negative returns compared to the category average. You can see that fund provided better risk / return trade-off to investors compared peer average

Source: Advisorkhoj Research, as on 29^th September 2026. Fund: HDFC Value Fund. Category: Value Funds category average

Drawdowns

The table below shows the major corrections in the market over the last 25 years. You can see that the HDFC Value Fund experienced lesser drawdowns compared to the benchmark index in most cases, limiting downside risks for investors

Source: Advisorkhoj Research, as on 29^th September 2026

SIP Rolling Returns

The chart below shows the 20 year rolling SIP returns of HDFC Value Fund since the inception of the scheme. You can see that the minimum 20 year SIP returns (XIRR) of the fund was always more 12%.

Source: Advisorkhoj Research, as on 29^th September 2026

Over 10 year plus SIP tenures, HDFC Value Fund gave 12%+ CAGR returns in more than 90% of the instances. You should have long investment tenures for this fund.

Source: Advisorkhoj Research, as on 29^th September 2026

What is value?

• Absolute value: Companies trading below intrinsic value, as measured by potential earnings or asset values, and/or future cash flow growth


• Turnaround: Companies in turnaround phase - Good businesses that have gone through a temporary difficult period and de-rated but are poised for turnaround in profitability


• Relative value: Companies trading below their historical average multiples

Higher large cap allocations relative to peers

Source: Advisorkhoj Research, as on 31^st August 2026

Current portfolio positioning

Source: Advisorkhoj Research, as on 31^st August 2026

Who should invest in HDFC Value Fund?

• Investors who want to invest in undervalued companies


• Investors seeking to invest in a diversified (across market caps) portfolio with a long term horizon


• Investors aiming for twin benefits of earnings growth as well as re-rating of valuation multiples


• Investors looking for a sound and disciplined approach to investing amidst volatile market conditions


• Investors with very high risk appetite


• Investors with minimum 5 year investment horizon

Investors should consult their financial advisors or mutual fund distributors if HDFC Value Fund is suitable for their investment needs.