More returns in the long run than in the Nifty

Value Discovery Fund has seen higher returns against long-term investments in the Nifty. In the value category, the IPR Value Discovery Fund, which has just completed 15 years, showed a compounded return of 20.05 per cent against the Nifty-20, which saw a TRI return of 12.51 per cent.

The value strategy market does not seem to work every time but in the long run it sees significant returns. Naren said the return on investment in 2012 was good as the focus was on infrastructure in 2008, just as it was on technology stocks at the time.

Investment value is good when the market is growing and investment is especially good in the sector in which long-term investments are made.

Even now, some sectors have seen attractive valuations, with significant returns for the first time since 2009, most notably the cyclic sectors.

Good returns are expected as long as the central bank tightens interest rates.

SIP is a better tool for long term investment. During this period, the return on investment made by SIP has been 12.5 per cent. Against which, the Nifty-20 has seen a compounded growth rate of 12.5 per cent.