Fund Review : ICICI Prudential Bluechip Fund : Grow Wealth Advisors

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Category: Large Cap

Assets: Rs 18870 Crores (as on 31 Oct 2018)

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Fund Details 

Investment Objective 

To generate long term capital appreciation and income distribution to investors from a portfolio that is predominantly invested in equity and equity related securities of large cap companies

Suitability

This fund is suitable for investors who wish Long Term Wealth Creation through investing in Large Cap. Since its 80% investment would be in blue chips the volatility should be lesser than mid/small caps. This fund follows bottom-up stock picking which is a proven strategy for long term wealth creation. The fund follows portfolio hugging approach which means this fund will reflect index (for large caps) to certain extent.

This fund is one of the biggest and best performing Large Cap. The fund has performed consistently from its inception on 2008 and thus has a history of performance. Though in recent past fund may have under performed benchmark over long tenure it has beaten both its peers and benchmark handsomely. The below benchmark performance may be attributed to change of its Fund Manager and also portfolio reshuffling that was mandated due to new fund classification rules by SEBI. 

Fund Performance

Fund Manager Background

The scheme is currently managed by Anish Tawakley and Rajat Chandak. Mr. Tawakley has done PGDM (MBA) from IIM Bangalore and B. Tech (Mechanical Engineering) from IIT Delhi. Prior joining to ICICI AMC he has worked with Barclays India and Credit Suisse India. Mr. Chandak is a B.Com (H) and MBA. He has been associated with ICICI Prudential AMC since 2008.

Asset Allocation Pattern

This fund has mandate of investing minimum 80% of its assets in large caps. Large Cap means first 100 companies in terms of market capitalization.

Sectoral Allocation

These sectors (including CPs and CDs) constitute >60% of fund portfolio as on 30 Sept 2018

Summary and Investment Advice

Every investor must have large companies in their portfolio to counter overall volatility.  ICICI Pru  Bluechip will cater to this need and fits for this mandate well.  It follows a benchmark hugging investment strategy which means its portfolio may mimic benchmark index to certain extent. ICICI Pru Bluechip has distinguished itself by consistently beating its benchmark and peers by a reasonably good margin.           

If we see portfolio of fund then Banks and Finance cos forms almost 27% of the portfolio. We believe these sectors can offer good returns in coming quarters / years after taking heavy knock in last couple of month in market correction. also next big part of portfolio is software which will benefit from dollar price. So overall the portfolio is well balanced and may give good returns henceforth.  

It is recommended to invest in ICICI Bluechip Equity Fund through both SIP and lump sum. This fund is ideal for long-term goals as this fund has lower volatility but can yield much better returns.

Please call us at 9325295502 or email us at [email protected] for further details or you wish to invest in this plan