JM Value Fund

JM Value Fund has delivered strong long-term SIP returns, with 3Y XIRR of 20.51% and 5Y XIRR of 19.82% comfortably ahead of category averages of 16.95% and 16.99% respectively, while the 1Y XIRR of 10.71% lags the category's 11.59%. Against its NIFTY50 VALUE 20 benchmark, the fund shows consistent alpha across all periods, including 5.68% over 3Y and 6.89% over 5Y. Lump-sum performance is weaker relative to the benchmark's own CAGR, with 3Y fund CAGR of 9.77% versus 4.04% for the benchmark being a positive exception.

The fund exhibits favorable risk-adjusted behavior with a downside capture below 90% at every horizon (84.74% over 5Y, 83.91% over 12Y) combined with upside capture between 90% and 98%, indicating it loses less in declines while retaining most of the gains. The maximum drawdown of just -0.38% over 40 days with 239 days to full recovery points to limited recent peak-to-trough stress, though 7 drawdown events exceeding 10% have occurred historically. Calmar ratios of roughly 0.44-0.54 across horizons reflect steady but not exceptional return per unit of drawdown.

The portfolio is well diversified across 69 holdings, with the top 10 accounting for only about 32% of NAV and the largest position, Redington Limited, at just 4.36%. Exposure is spread across financials (Banks at 11.9% and Finance at 10.2% being the largest sectors), auto components, electrical equipment, and IT software, avoiding any heavy single-sector bet. Notable positions include ICICI Bank, Shriram Finance, Larsen & Toubro, and Infosys, consistent with a genuine value-oriented approach.

The fund has outperformed its category on SIP XIRR across most horizons, most notably the 3Y figure of 20.51% versus 16.95% and the 12-year figure of 17.83% versus 16.08%. Its consistent positive alpha versus the NIFTY50 VALUE 20 benchmark across all seven measured periods — from 2.74% over 10Y to 6.89% over 5Y — suggests durable stock-selection skill rather than a one-off result. The main soft spot is the trailing 1Y, where it trails both category average and recent calendar-year results have turned negative.

This fund suits investors seeking a value-style core equity holding with a long horizon of 7 years or more, given its strongest and most consistent outperformance over longer periods. It is appropriate for investors with moderate-to-high risk tolerance who accept interim volatility, as seen in recent negative calendar years of -3.55% in 2025 and -6.78% in 2026. SIP investors benefit most from its below-average downside capture, which supports disciplined accumulation through market cycles.

• Consistent positive alpha versus the NIFTY50 VALUE 20 benchmark across all periods, peaking at 6.89% over 5 years
• Long-term SIP XIRR outperformance versus category averages at 3Y (20.51% vs 16.95%), 5Y, 7Y, 10Y, and 12Y horizons
• Asymmetric capture profile with downside capture as low as 83.91% (12Y) paired with upside capture above 90%, aiding loss limitation in downturns

• Recent 1Y XIRR of 10.71% trails the category average of 11.59%, and calendar years 2025 (-3.55%) and 2026 (-6.78%) were negative
• The 1.25% expense ratio is a meaningful drag for a diversified large-cap-tilted value fund