The number
Over the five years to 30 September 2026, the median value fund returned 12.29% a year. The median flexi-cap fund returned 10.11%.
Value funds must hold mostly stocks their managers consider cheap. Contra funds bet against the prevailing mood. Flexi-cap funds can buy anything. Over five years, the constrained styles did better; over the last year, they did not.
All figures are for each fund's Direct plan, Growth option, computed from daily NAVs to 30 September 2026. A fund is counted in a period only if it has a full record for it.
The three styles, side by side
| Median return | Value | Contra | Flexi Cap |
|---|---|---|---|
| 1 year | 0.22% (22 funds) | −1.74% (3) | 1.93% (40) |
| 3 years, a year | 11.70% (21) | 13.10% (3) | 11.22% (36) |
| 5 years, a year | 12.29% (17) | 13.33% (3) | 10.11% (27) |
| 10 years, a year | 13.46% (12) | 15.41% (3) | 13.14% (18) |
The contra column is three funds: Kotak, Invesco India and SBI. A fourth, Bandhan Contra, launched on 2 September 2026. With three funds, a median is just the middle one, so read that column as three data points, not a category average.
Against our estimate of the Nifty 500's total return, which all three styles are usually measured against:
| Funds beating the Nifty 500 (estimated total return) | Value | Contra | Flexi Cap |
|---|---|---|---|
| 1 year (−1.82%) | 14 of 22 | 2 of 3 | 28 of 40 |
| 3 years (9.71%) | 16 of 21 | 3 of 3 | 26 of 36 |
| 5 years (9.25%) | 15 of 17 | 3 of 3 | 18 of 27 |
| 10 years (12.88%) | 8 of 12 | 3 of 3 | 12 of 18 |
The five-year row is the clearest. Fifteen of 17 value funds beat the index, against two-thirds of flexi caps.
Value funds were tightly bunched over five years
The middle half of value funds sat between 11.34% and 12.83% a year over five years, a band of 1.5 points. For flexi caps the same band ran from 8.93% to 12.13%, more than twice as wide.
Over three years the value spread opens up again:
| Value fund (Direct, Growth) | 1 year | 3 years | 5 years |
|---|---|---|---|
| Quant Value | 14.16% | 19.64% | |
| LIC MF Value | 22.27% | 17.15% | |
| Axis Value | 6.99% | 16.95% | 15.59% |
| DSP Value | 4.33% | 15.54% | 12.29% |
| HDFC Value | 5.54% | 15.00% | 13.19% |
| … | |||
| Bandhan Value | −1.39% | 9.27% | 12.23% |
| Quantum Value | −8.09% | 8.30% | 8.71% |
| Baroda BNP Paribas Value | −2.10% | 8.10% | |
| Templeton India Value | −5.72% | 8.07% | 11.87% |
| Sundaram Value | −6.69% | 5.78% | 7.16% |
The contra funds
| Contra fund (Direct, Growth) | 1 year | 3 years | 5 years | 10 years |
|---|---|---|---|---|
| Kotak Contra | −1.25% | 13.78% | 13.33% | 16.04% |
| Invesco India Contra | −1.74% | 13.10% | 12.22% | 15.41% |
| SBI Contra | −3.14% | 9.79% | 14.09% | 15.10% |
All three lost money over the past year and all three beat the estimated Nifty 500 over three, five and ten years. SBI Contra has the best five-year number and the weakest three-year one.
Risk was about the same
Over three years, the three styles moved with almost the same volatility: a median of 14.14% a year for value, 14.61% for contra and 14.22% for flexi caps. Their median worst falls were 17.98%, 18.64% and 18.47%. On this evidence, value and contra funds did not buy their five-year lead with extra risk.
What this does not tell you
Style leadership rotates. The last five years favoured these two styles, and the last year already did not. A different five years can reverse the order.
"Value" is the fund house's own label. SEBI requires a value fund to follow a value strategy but does not define cheap. Two value funds can own very different portfolios.
Survivors only. Funds that merged away are not here. Nothing in this post is advice to buy or sell any fund.
Where to go from here
The value fund and contra fund pages list every scheme. For the ideas behind them, read value vs growth investing and contra funds explained.
For the flexi-cap side in full, see flexi-cap fund returns, and for all twelve categories at once, the equity category scorecard.
For which indices trade cheap against their own history, see the cheapest and dearest NSE indices.
Frequently asked questions
Have value funds beaten flexi-cap funds?
Over five years to 30 September 2026, yes: the median value fund (Direct plan, Growth option) returned 12.29% a year against 10.11% for flexi caps. Over three years the gap was smaller, 11.70% against 11.22%, and over one year flexi caps were ahead, 1.93% against 0.22%.
How have contra funds performed?
Only three contra funds have a full record. To 30 September 2026 their Direct Growth plans returned between −3.14% and −1.25% over one year, 9.79% to 13.78% a year over three years and 12.22% to 14.09% a year over five years.
Are value funds riskier than flexi-cap funds?
Not on recent numbers. Over three years the median value fund had annualised volatility of 14.14% and a worst fall of 17.98%, against 14.22% and 18.47% for the median flexi-cap fund.
This is commentary on published data, not investment advice. WealthTicker is not a SEBI-registered adviser or distributor. Figures are as of the dates stated and can be revised by their source.
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