🎯 Value Mutual Funds Leading the May 2025 Rotation

Summary: After a prolonged growth‑stock run, India’s market is rotating back to value. May 2025 saw value‑oriented funds deliver up to 18% YTD, outpacing growth schemes. Discover why value stocks are in favor, top fund picks, and how InvestoEdge’s model portfolio captures this shift.

1. Market Rotation to Value

Over the past 12 months, value stocks outperformed growth by an average of 2.3 pp per month, driven by higher earnings resilience and attractive valuations.¹ In May 2025, value funds posted up to 18% YTD returns vs. 10–12% for growth peers.²

2. Why Value Now?

Key drivers include rising interest‑rate expectations, improved corporate profitability, and a global shift away from high‑P/E names.³ International value stocks also outperformed U.S. growth by 11% this quarter, signaling broad rotation.⁴

3. Top Value Fund Picks (May 2025)

• Invesco India Contra Fund: 21% YTD⁵
• Bandhan Sterling Value Fund: 18% YTD⁶
• Nippon India Value Fund: 17% YTD⁷
• ICICI Prudential Value Discovery: 16% YTD⁸

4. Building a Value‑First Portfolio

Balance value funds with a small growth tilt (10–15%) to capture any late‑cycle rallies. Rebalance quarterly, trimming winners above 1.5× cost basis.⁹

5. InvestoEdge Model Portfolio

InvestoEdge’s “Value Plus” model combines 60% value funds, 25% thematic plays in banking & auto, and 15% high‑yield debt for stability—optimized weekly via our AI engine.

References

1. Morningstar – Value vs. Growth performance (Q1 2025)
2. ET News – Best value funds to invest in May 2025
3. BlackRock – Are international equities & value back?
4. J.P. Morgan – Market Review Q1 2025
5. ET Mobile – Invesco India Contra Fund stats
6. ET Money – Value‑oriented mutual funds ranking
7. ET News Mobile – Nippon India Value Fund
8. ICICI Prudential – Value Discovery Fund fact sheet
9. HBR – How to build & rebalance portfolios
10. Mutual Fund Observer – May 2025 industry trends