S Naren shares his value investing mantra after turning Rs 10 lakh to Rs 6 crore in 20 years
value investing style has stood out, as ICICI Prudential's Rs 50,000 crore Value Discovery Fund has grown at a staggering pace of 21% CAGR. An investment of Rs 10 lakh made at the time of the scheme's inception in August 2004 would now be worth around Rs 4.67 crore.
S Naren, CIO of ICICI Prudential AMC, who has been running the fund for the last 2 decades, says value investing has remained relatively uncrowded over the years.
In this exclusive chat with ETMarkets, the star fund manager talks about periods of underperformance, challenges and how his style has evolved. The IIT-IIM pass-out, who considers Warren Buffett as his guru, also shares 4 key learnings as a value investor.
Edited excerpts:
Your Value Discovery Fund has given exceptional returns at a CAGR of 21% in the last 20 years. What do you think has worked in your favour when you look back at the previous two decades, especially when so much attention was being given by others to momentum and growth?
India has been one of the best-performing markets in the last 20 years. Its strong market performance over two decades has played a significant role in our success and it has worked in our favour. Moreover, when we launched the Value Fund in 2004, value investing was relatively under-appreciated, and fortunately, it remains so even today, there weren't and aren’t enough people who focus on value.
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